Inherited half a house / buyout

little_alien

Hi

I have recently inherited half a house along with my uncle.

Now the house is approx 200k and would like to buy out my uncle ( who has agreed) of his 50%.

The house is Mortgage free.

My question is what type of mortgage is it? would it be classed as a Remortgae or a new purchase since i would be using my 50% as Equity against the borrowed 50%.

and if is there any difference to the process.

Cheers any info helful

Horrified_Solicitor

It's a purchase of equity. Basically you just fill in a mortgage application form. I'd use a broker though because lenders often get confused and the terms of loans can vary widely as a lot of purchases of equity follow split ups and the purchaser often struggles to make the repayments.

Conrad

Probably get this through as a remo. If it's on a residential basis the lender will need to proove your'e living there. If you do not live there, this would need individual human underwriting. No amount of online lender surfing will be of any use to you.

Be aware some lenders have a rule where they cannot lend until you've owned a place 6 months.

Otherwise should be straightforwards.

adbee

I was in the same position with my sister, but my sister bought me out of the house. Dont hold me to this and am sure others would correct me if I am wrong, but I seem to remember it is just a standard new 50% LTV mortgage.

They will use 50% equity as a deposit, and the mortgage company will just pay the mortgage to your uncles solicitor.