Potentially complicated mortgage needed- jointly owned property

dixiegirl_2

Hi,

I've inherited a house with 2 sisters. One sister is living there & we need to decide what to do in terms of our inheritance for the longer term.

The house is worth 330k & the sister living there owns about 45%. The remainder is split between us other 2.

The sister there earns between £30k - £40k p/a & potentially has around £20k extra savings that she could split between us.

I have 2 questions really.

1. The sister there says she could afford a monthly mortgage of around £500. Is there mortgage product around that price that would allow her to buy us out? (160 - 180k)

2. Could she take a mortgage for part of the property allowing her to buy out just one of us/get a larger share of the property? (around 90k).

Thanks
DG

Thrugelmir

In answer to your questions.

1. No (however see 2. below).

Only £500 out of a £30k plus salary? Suggests your sister has other financial committments.

2. No.

The mortgage will need to be held in the names of all owners of the property.

Suggest you sell now before matters become more complicated.

dixiegirl_2

Thanks Thrugelmir, a very clear answer.

It certainly looks as if this could become very complicated unless we resolve the financial situation now.