David and Margaret own on a 60:40 basis as tenants in common with a mortgage of €500,000 outstanding. If David dies, Margaret is legally liable for which proportion?

• A. None of the outstanding mortgage as the bank will automatically write-off the balance.
• B. 40% of mortgage outstanding.
• C. 60% of mortgage outstanding.
• D. 100% of mortgage outstanding.

Answer: (D)

When a mortgage is held by more than one person, lenders usually treat the borrowers as jointly and severally liable. That means each borrower is personally responsible for the entire loan, not just their share of ownership. In a tenancy in common, David’s 60% share passes to his estate on death, but the loan remains secured by the property and the surviving co-borrower stays responsible for the debt. The deceased’s estate may owe its portion of the debt to the extent assets exist, but the bank can demand the full balance from the surviving borrower if needed. Therefore, Margaret would be legally liable for the entire mortgage outstanding, i.e., 100%.