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Legacy_user
Posts: 0 Newbie
Hello folks.
My mother recently passed away and left a house with a mortgage.
The house value is £110,000 and theres £45,000 left.
As i live and work in Spain I am no longer classified as a UK resident therefore I cannot take over the mortgage.
I am the sole beneficiary. My aunt and uncle are the executors.
The solicitor has said that the house cannot directly to into my name as I can't get approved to take over the mortgage. The only options are to sell the house or leave it short term under the control of the executors.
Has anyone else left their inheritance under the control of the executors for any length of time? Has this proved difficult.
I have the money to cover the mortgage but the bank won t give me a mortgage.
I would ideally like to keep the house however I don't want it sitting in the control of my aunt and uncle for years to come and always having to ask them for permission when I want to sell or rent it.
Thanks
My mother recently passed away and left a house with a mortgage.
The house value is £110,000 and theres £45,000 left.
As i live and work in Spain I am no longer classified as a UK resident therefore I cannot take over the mortgage.
I am the sole beneficiary. My aunt and uncle are the executors.
The solicitor has said that the house cannot directly to into my name as I can't get approved to take over the mortgage. The only options are to sell the house or leave it short term under the control of the executors.
Has anyone else left their inheritance under the control of the executors for any length of time? Has this proved difficult.
I have the money to cover the mortgage but the bank won t give me a mortgage.
I would ideally like to keep the house however I don't want it sitting in the control of my aunt and uncle for years to come and always having to ask them for permission when I want to sell or rent it.
Thanks
0
Comments
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Sorry for your loss.
Is there an insurance policy linked to the mortgage, or other cash assets that could be used?
I always understood that if there wasn't a way of paying off the mortgage on the death of the mortgagee then there was no option but to sell it0 -
Have the money to cover the mortgage payments*0
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No insurance in place and the other assets can only reduce the mortgage by 5-6k.
I wanted to keep the house and rent it however nationwide aren't helping and my circumstances are pretty difficult as I live abroad, am self employed etc. The idea seems to leave it under the control of the executors for 1 year rent it on the quiet and then review it.
But I don't know what my rights are if it sits under the control of the executors. Surely it means legally I'm not allowed to do anything with the house without their say so.0 -
A quick search shows that a Barclays (note : I'm not qualified to recommend them!) do an ex-pat mortgage so there must be organisations that would cover your situation.
If you want to rent it out you'll probably need an ex-pat btl mortgage)
Just because nationwide won't help just means you have to look elsewhere0 -
I have tried all avenues. Barclays and HSBC do them. However my situation is complex as I only moved to Spain last summer, my mother passed February.
My business is self employed so 1) I dont declare all my earnings and 2) my earnings are very small as it's first year maybe talking €28000 a year however that is divided by me and my partner as we work together. So I would be going with a salary of €14000 Euro and proof off about €10000 a year.
Not exactly much.
I have next to no bills so basically I save around 500 a month which is more than the mortgage payments.
For me I would sell the house however the executors are pushing me to find a way to keep it and rent it out. They aren't coming up with any solutions but merely saying, keep paying the mortgage which I'm already doing, they being executors will rent it out, get some income from it and wait until the bank write saying that the deeds of house need sorted etc which could take 12-18 months as the bank will be getting their money and nothing will flag up for a while.
It's a head melt to be honest id I'd rather just sell it however I understand my aunt and uncle want to try to keep it and help however they can.0 -
Well it is yours so really it is up to you what to do with it not them.
If they want it they can buy if off you.0 -
I have tried all avenues. Barclays and HSBC do them. However my situation is complex as I only moved to Spain last summer, my mother passed February.
My business is self employed so 1) I dont declare all my earnings and 2) my earnings are very small as it's first year maybe talking €28000 a year however that is divided by me and my partner as we work together. So I would be going with a salary of €14000 Euro and proof off about €10000 a year.
Not exactly much.
I have next to no bills so basically I save around 500 a month which is more than the mortgage payments.
For me I would sell the house however the executors are pushing me to find a way to keep it and rent it out. They aren't coming up with any solutions but merely saying, keep paying the mortgage which I'm already doing, they being executors will rent it out, get some income from it and wait until the bank write saying that the deeds of house need sorted etc which could take 12-18 months as the bank will be getting their money and nothing will flag up for a while.
It's a head melt to be honest id I'd rather just sell it however I understand my aunt and uncle want to try to keep it and help however they can.
So do you want to sell it or not?
Tbh it sounds like a complete recipe for disaster - if there's no way you can get a mortgage in your own name then you're probably better off selling.0 -
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Let's go back a step or three.
You are, I presume, the sole beneficiary of your mother's entire estate, whether under intestacy rules or via a will doesn't make a difference, other than the will presumably named the executors.
Her estate includes a house worth £110k.
Does it include any other assets? I presume not much, from the rest of your post.
However, it includes a £45k liability - money borrowed against that house.
So you are in line to inherit (£110k-£45k)=£65k, plus any other assets, once probate is granted and the executors can distribute the estate.
Except your mother's estate cannot raise the £45k to repay that liability. So the obvious way for the executors to get probate is to sell the house. If, otoh, you specifically want to inherit the house, you can pay in the £45k to her estate, which the executors can use to clear the mortgage. How you raise that £45k is not the executors' problem.
Can they, as executors, choose to start renting the property, to buy you time to raise the money? Perhaps - but I would think not. They are under a duty to get probate granted in a timely manner - much less than the timescales involved in property rental.
That presupposes that you, once you inherit the property, want to rent it. What happens once probate is granted and the estate is distributed is none of the executors' business - if they are pushing you to do anything in particular, that is outside of their role as executors. Sure, it may have been their sister's home, and they'd rather it "stayed in the family". Tough. It is not their property nor will it ever be their property - it is still the property of their sister (deceased), and once they complete their job as executors, it will be your property - and they need to understand that. If you do not want to rent it, then the executors are clearly not acting in either the estate's best interests or yours by pushing to let it before probate.
If they want to keep it in the family, then they can find £65,000 for you and £45,000 for the lender, and buy it from the estate themselves. If they can't do that, then they have no other option but to follow your wishes and sell it.
If they refuse to accept this, then you need to look into replacing them as executors. It may be worth the cost to get the solicitor to act, if you can't do so yourself.0
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