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  • FIRST POST
    • cclem345
    • By cclem345 9th Jul 17, 3:28 PM
    • 26Posts
    • 14Thanks
    cclem345
    Inheriting a house with a mortgage.
    • #1
    • 9th Jul 17, 3:28 PM
    Inheriting a house with a mortgage. 9th Jul 17 at 3:28 PM
    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
Page 2
    • frugalmacdugal
    • By frugalmacdugal 9th Jul 17, 5:29 PM
    • 5,921 Posts
    • 5,121 Thanks
    frugalmacdugal
    Hi,

    worst case scenario, if/when the mortgage company get to know the real situation, can they not just reclaim and auction the house?

    As long as they get their £45k they won't care what it sells for.
    Y'all take care now.
    • AdrianC
    • By AdrianC 9th Jul 17, 5:35 PM
    • 14,710 Posts
    • 13,078 Thanks
    AdrianC
    worst case scenario, if/when the mortgage company get to know the real situation, can they not just reclaim and auction the house?
    Originally posted by frugalmacdugal
    No. They can withdraw the lending facility, and require repayment of the balance of the account, but they can't just start a possession claim when a mortgage isn't in arrears by even a single penny. Even if they did start, it'd get thrown straight out by the court.

    As long as they get their £45k they won't care what it sells for.
    If they ever do repossess, then they have a legal duty to act in the borrower's best interests, because the residue above their debt is returned to the borrower. They have to maximise the return, albeit with a timeliness caveat.
    • cclem345
    • By cclem345 9th Jul 17, 5:42 PM
    • 26 Posts
    • 14 Thanks
    cclem345
    No the solicitor is completely neutral.

    I think my aunt and uncle are maybe worries I sell the house, maybe things don't work out in Spain business wise and relationship wise and perhaps I miss-use a significant chunk of the money. I'm not sure they are also my godparents so I do trust them.

    They also have sound finances and own their own houses outright along with property abroad so they aren't in any financial hardship.

    I do believe they are trying to help but they are clutching at straws.

    They are maybe hoping this rental short term solves the immediate issue when in fact it makes it worse.

    I think the only option is to sell and maybe it's time to just bite the bullet.
    • cclem345
    • By cclem345 9th Jul 17, 5:44 PM
    • 26 Posts
    • 14 Thanks
    cclem345
    The mortgage payments will never go in arrears as I have met every payment and have a enough money to pay it without problems so the house will never be repossessed.

    The worst is they advise to put it on the market. I'm the area I live houses similar have been sold in 3-4 weeks so wouldn't be a problem.
    • AdrianC
    • By AdrianC 9th Jul 17, 5:53 PM
    • 14,710 Posts
    • 13,078 Thanks
    AdrianC
    I think my aunt and uncle are maybe worries I sell the house, maybe things don't work out in Spain business wise and relationship wise and perhaps I miss-use a significant chunk of the money. I'm not sure they are also my godparents so I do trust them.
    Originally posted by cclem345
    As your aunt/uncle, and your godparents, they have every right to be so concerned.
    As executors of your mother's will, that's all completely and utterly irrelevant.

    They also have sound finances and own their own houses outright along with property abroad so they aren't in any financial hardship.
    They haven't offered to lend you the £45k themselves, though...?
    • cclem345
    • By cclem345 9th Jul 17, 6:07 PM
    • 26 Posts
    • 14 Thanks
    cclem345
    No they haven't I thought it was something that may happen. Because with my mums money in the bank and a pension that was paid on death it would reduce the amount from 45k to 37k or so. I could probably round up 7k but still would require 30k which I cant see them putting up.
    • cclem345
    • By cclem345 9th Jul 17, 6:09 PM
    • 26 Posts
    • 14 Thanks
    cclem345
    If I was to sell and I had a pot of 70-75k. Would yous but a property outright and rent it for investment? I have no need for the money now or for the next few years.

    Would make sense providing the house I bought didn't require too much work.
    • davidmcn
    • By davidmcn 9th Jul 17, 6:21 PM
    • 5,427 Posts
    • 5,127 Thanks
    davidmcn
    Things are obviously made complicated by the fact you live in Spain so can't get UK based legal advice of your own.
    Originally posted by gettingtheresometime
    Not being in the same country is hardly a barrier to getting legal advice, the vast majority of which is done over email or phone these days anyway.
    • gettingtheresometime
    • By gettingtheresometime 9th Jul 17, 9:03 PM
    • 2,486 Posts
    • 5,437 Thanks
    gettingtheresometime
    Not being in the same country is hardly a barrier to getting legal advice, the vast majority of which is done over email or phone these days anyway.
    Originally posted by davidmcn
    True.

    But it's a whole lot simpler when you're sat across a table with the solicitor, they say x and that raises question y & z in your mind.
    Lloyds OD / Natwest OD / PO CC / Wescott cleared thanks to the 1 debt v 100 day challenge


    Next on the list - the Argos Card!
    • tlc678910
    • By tlc678910 10th Jul 17, 5:05 PM
    • 465 Posts
    • 853 Thanks
    tlc678910
    Hi,
    If you want to keep the house (in case you want it in the future) you could ask your aunt and uncle would they like to buy 50% of the house from you. Their money would settle the mortgage and do up the house for renting. You would be joint owners/ joint landlords and split profits (or losses).

    If you wanted to return to the house in the future you could agree to get it independently valued and buy it off them with a mortgage or privately - they would need to agree this was acceptable.

    They might consider this if their concern is that they want to safeguard your future for you in case the money evaporates over time, but it protects their cash to a great extent too.

    If they are not interested then you can't raise the money and should sell.

    Tlc
    • cclem345
    • By cclem345 10th Jul 17, 9:50 PM
    • 26 Posts
    • 14 Thanks
    cclem345
    Thanks for your post.

    Yeah I thought it may be something that they would come up with because realistically I could probably get a total of 15k to clear of it leaving 30k.

    However they dont seem to be wanting to go down that route otherwise I think they would have offered by now. I also get the impression from the solicitor she suggested that and it wasn't anything they were interested in.

    It's a strange one and looks long term the only solution will be to sell. At the end of the day although they wamt to safe guard my future they aren't giving me any option. They know I'm in a sound place financially now however I wasn't always so wise with money 3-4 years ago. The usually live like a millionaire for 2 weeks and like Oliver twist the last 2 week's until payday again. Saying that I was a few years younger and partied way too much.
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