Group of investors - mortgage protection

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georgem25

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Myself and 2 members of my family are arranging to buy property together as an investment. Do we have to take out individual mortgage protection? Or is it possible to get one policy? Will it be cheaper/dearer because it is an investment property?
 
Mortgage protection life assurance is not mandatory for investment properties unlike (most) owner occupied PPRs. Some lenders may try to insist on it but there is no legal requirement for it. With an investment property if you die then your next of kin can dispose of the property (or your/their share) to discharge any debts attached. Unlike a PPR where they will most likely need MPLA to clear the mortgage on the family home.
 
You might want to look at the inheritance tax implications of this venture, depending on the value of the property and the relationship of the 'family' members.
 
georgem25 said:
Myself and 2 members of my family are arranging to buy property together as an investment. Do we have to take out individual mortgage protection? Or is it possible to get one policy? Will it be cheaper/dearer because it is an investment property?
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If you are going to take out mortgage protection which you dont have to, take out individual policies. Generally this will be slightly more expensive and i mean slightly but the benfits are greater in that if one periosn dies the other two are still covered. I am not sure you can get a life assurance policy with 3 lives assured anyway
 
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