sister wont leave my decesed mothers house

Hectors_House

bluecab wrote: »

The latest is she has been to see about a loan and says they are looking into it!! i find it hard to believe!
thanks for the help.

I imagine they are!!!

They will make sure their contract with her allows them to repossess the house if she fails to pay back the loan.

You will both get your shares and she'll end up with nothing.

Jowo_2

Well, in the meantime, are you planning to get the property properly valued?

Also, in the rare event that she qualifies for a mortgage based on her benefits (and where I think there is a cap on having savings greater than 16k so she shouldn't have a huge nest egg), and the council find out about it, they will take legal action to repossess her council property if she does not surrender her tenancy with them

By the way, here are the rates for DLA. Don't know what she can claim on top, also but if you post a query on the benefits board, and ask about the likelihood of getting a mortgage, someone may be able to advise.

Are you sure its actually DLA rather than Incapacity Benefit or ESA? ESA is replacing IB and lots of people formerly on IB are now not qualifying for ESA and end up on Jobseekers allowance.

http://www.direct.gov.uk/en/DisabledPeople/FinancialSupport/DisabilityLivingAllowance/DG_10011925

It's possible for a disabled person to qualify for both mobility and care needs at the upper rate and get about £120 pw but if she did qualify for both, she'd have not been able to make it to the solicitors!

If your sister is a benefit junkie, I don't think she's thought through the impact of home ownership on means tested benefits. Again, if you post the scenario on the benefits board, they'll be able to advise you how your sisters current part share in a property, and perhaps full ownership, could affect her. I think DLA isn't means tested though.

bluecab

There is a similar house on the market for £100,000 three doors away. I'm not sure what benefits shes on, I'm only presuming DLA cos when i rang the bank they said if she was on DLA they would take that into consideration. Im not sur how much per week she gets but she is adament she can get the money!
She has never worked since leaving school and is 44 years old !

SailorSam

toffeecoated wrote: »

You say this is you're mums house but it appears you're mum is the only one of you that did not own a share. Did she pay rent to the three of you for the last ten years? You seem to have been happy to let you're mum live there rent free but you are not so willing to let you're sister do the same. I.

There's a world of difference between letting your mum live in a house you own, rent free, and giving your bone idle sister the same deal.
It would be a much better world if we could all be happy families, helping each other when needed, give and take makes the world go around.
But you come to the point when it doesn't work, here for example tho of the siblings are giving and one taking.

bluecab

She is all take and no giving !

Jowo_2

Not sure how a person on benefits who is unlikely to have built up a nest egg for a deposit is going to be in the position to get a mortgage to pay a brother and a sister up to 66k for their share of the property.

I don't have any expertise on benefits but I can't see how her income on benefits as a single person without dependents could be much greater than 10 or 12k with every maximum benefit entitlement claimed for.

This amateur assumption I base on the fact that after about 10k in income for a single person with no dependents, there's virtually no means tested benefits available from the state to top them up. I can't see how benefits are going to be much greater for a single person than someone working on the minimum wage earning about 10k per year.

Also, what usually makes it more worthwhile for a person to claim benefits than seek employment is that LHA/Housing Benefit takes the sting out of the most major of living costs and cushions the claimant. Your sister will lose her LHA/HB when she becomes a home owner, though there is some kind of mortgage interest relief for those on benefits.

I really can't see how she can pay a mortgage and keep on her existing rental flat, even the first option would be a struggle.

I am baffled that a person on benefits can even get a mortgage - wasn't even aware it was possible, given the fact that benefits are subject to huge changes at the whim of the government and their generally low rates of payment. I suppose it must be possible then, after all.

Is it a large property with a few bedrooms? Do you think she cherishes it for its opportunity for her to earn money on the side by having a lodger or renting it out?

bluecab

Its a 2 up 2 down terraced, im as baffled as you, like i said i rang the bank and asked can you get a morgage if you are not working &o n benifits, the lady said if you are on DLA they will take that into consideration.

Jowo_2

A moderate rate of DLA will give her 4k per year, a maximum rate around 6k. Presumably there could be an income support or another benefit top up, too which perhaps a lender will include.

But as most mortgage lenders will lend around 3 times the applicants income, I'm struggling to see how they would lend her any more than around 30k and I can't see how she can have any more than about 16k in savings, if that much at all.

So in a really optimistic scenario of generous benefits that are fully taken in to account by the lender and the maximum savings allowed by claimants, she could get less than half the market value of the property as a mortgage?!

As I'm not a benefits or mortgage guru so this is finger in the air calculations, is there anyone with an alternative viewpoint?

Oldernotwiser

Jowo wrote: »

Not sure how a person on benefits who is unlikely to have built up a nest egg for a deposit is going to be in the position to get a mortgage to pay a brother and a sister up to 66k for their share of the property.

Would she need a deposit if she already owns a third of the property?

seven-day-weekend

DLA is not means-tested so she can have any amount of savings.