Late Mothers House

Martin_S

My daughter wishes to buy my late mothers house. This is valued at £80,000 to be split between myself, my brother and my sister.The question I have is what is the best way to go about this, unfortunately at this moment she does not have a deposit, she cant rent it as my brother and sister want it to be sold. As I only have a small mortgage is there any way I could extend or borrow on it for her to use as a deposit

captainhaggis

You could sign your share of the house over to her and she could use that as a 33% deposit on the property (with the caveat that, over time, she pays you that value) so she'd only need a 67% mortgage which is VERY doable in the current climate. If she's got a decent credit history, she'll be able to get a good rate, too.

It depends how involved you want to get in it all.

Signing your share over to her seems the best way to go.

VIGILANT22

Martin S

She can do something known as a "concessionary purchase"...ask friends/family/colleagues to refer you to a whole of market mortgage adviser they have used and have been happy with.....they should be experienced enough to know what to do....:)

VIGILANT22

captainhaggis wrote: »

You could sign your share of the house over to her and she could use that as a 33% deposit on the property (with the caveat that, over time, she pays you that value) so she'd only need a 67% mortgage which is VERY doable in the current climate. If she's got a decent credit history, she'll be able to get a good rate, too.

It depends how involved you want to get in it all.

Signing your share over to her seems the best way to go.

Owing people money will have to taken into account when assessing her affordability...........

captainhaggis

VIGILANT22 wrote: »

Owing people money will have to taken into account when assessing her affordability...........

I know. But this gives them room to play around with the figures a bit.

I could afford more than the banks calculated that I could when I took out my mortgage(s) because of the way they work things out.

VIGILANT22

owing money is deducted from affordability!....like what you suggested...

captainhaggis

But as this money is 'owed' to her mother, she needn't (with the mother's permission) actually declare it as being owed, per se.

VIGILANT22

captainhaggis wrote: »

But as this money is 'owed' to her mother, she needn't (with the mother's permission) actually declare it as being owed, per se.

I am sorry but it doesn't work that way, you can't invent your own rules!
The source of deposit must be declared as does whether it is repayable or not...To tell anything other than the truth is mortgage fraud

Pincher

Martin_S wrote: »

My daughter wishes to buy my late mothers house. This is valued at £80,000 to be split between myself, my brother and my sister.

Is the Probate finished, or to be done?

Provided all three siblings sign, you can re-assign the property any way you want, by Deed of Variation. For example, you relinquish your share to your daughter, so she inherits a third. If the solicitor is really good, he can lump the sale and probate work together, and save some fees. Alternatively, she can pay rent to the other two, and buy the other two shares when she's ready.

VIGILANT22

Pincher wrote: »

Is the Probate finished, or to be done?

Provided all three siblings sign, you can re-assign the property any way you want, by Deed of Variation. For example, you relinquish your share to your daughter, so she inherits a third. If the solicitor is really good, he can lump the sale and probate work together, and save some fees. Alternatively, she can pay rent to the other two, and buy the other two shares when she's ready.

This is the concessionary purchase I suggested to the OP in post 3...:)
All lenders do not allow this however an experienced advisor will know.....

Pincher

VIGILANT22 wrote: »

This is the concessionary purchase I suggested to the OP in post 3...:)
All lenders do not allow thism however an experienced advisor will know.....

But it was cryptic.

Raise your hands who understood it?