Writing in Property118, Mark Alexander gives very good advice on how to deal with the death of a landlord.

It can be seen here, and covers:

What Happens to a Buy‑to‑Let Mortgage When the Borrower Dies

According to Property118:

• A buy‑to‑let mortgage is a personal agreement, so technically it becomes repayable on the date of death.
• However, lenders rarely call the loan in immediately. They usually allow a grace period, especially if life insurance exists or probate is pending
• Most lenders will let a surviving borrower continue payments, subject to passing affordability checks. If the loan had been based on two incomes, the surviving party may need to refinance or sell the property

Probate & Tax Timing Risks

• Probate must be obtained before the estate can sell or remortgage property, but:
  • Probate isn’t granted until inheritance tax (IHT) is paid or secured.
• This can create a “cash stuck in bricks” problem:
  • Executors need liquidity to pay IHT,
  • But the property can’t be sold or refinanced until probate is issued—with IHT paid.
• These delays can lead to financial strain or forced sales

Who Handles It & How Debt Is Paid

• The executor or estate administrator is responsible for settling the mortgage debt before beneficiaries can inherit
  • They may use life insurance, savings, or proceeds from other assets.
• If the estate lacks sufficient funds:
  • the property may be sold to pay off the mortgage;
  • or a beneficiary may take over ownership via refinancing in their own name
• Interest on the mortgage typically continues accruing during the administration period, exacerbating the financial burden

Key Scenarios at a Glance

Bottom Line

A buy‑to‑let mortgage does not disappear upon death. It must still be repaid—usually from the estate, potentially via sale or refinancing. Probate delays and IHT obligations can create serious complications, making pre-planning, insurance, and professional support critical for landlords and their heirs.