Joint Tenants and Death and Loans


My mum owns a property with her father as Joint Tenants. This means that when my grandfather dies the property will go straight to my mum.

What will happen with the loan. Will the bank just change the loan over to my mum, or will they want her to reapply and qualify again. I ask as my mum is now a pensioner and there is no way she could qualify for the loan.

It may depend on the bank.
As far as I know most banks will require some documentation proving that he passed on and change it to one name only.
I have never had any clients die so far, and never experienced it personally, but think that the lender will not make the remaining person re-qualify for the loan. You would have seen the uproar on ACA if this happened.