mortgage/no mortgage minefield

doughuelas

Hi All

sorry if this is long

any guidance/advice would be extremely appreciated

situation; grandmother has now stopped receiving chemotherapy treatment etc and pretty much just been told to try her best to enjoy the rest of her life (no timeframe given)

approx 12-18 months ago i paid off the balance of her mortgage - £12k - both live in Scotland (i wanted her to enjoy the rest of her life not worrying about money)

she has said that she has made a will and in this will she has instructed that i receive the £12k i paid to clear her mortgage returned to me when the house is sold

the thing is, i want to be the person to buy the house; so many fond memories whilst growing up and this is also the place where she wants her ashes scattered - in her beloved front garden. (i cant bear the thought of scattering her ashes in there one day and then putting a 'for sale' sign up in that same garden the next day)

nobody else would look after her garden in the way that she would have liked apart from me

as mentioned earlier there is no timeframe on when she will pass away, but if all went badly in the next few months i have about £30k in savings with the plan that i would recieve the additionial £12k (the money i used to pay her mortgage off) back at some point = £42k all in

other houses in the street are going for £80k so this appears to be the amount i would pay for my gran's house. i dont want anything sold to me undervalue or anything like that

i am in two minds...i am trying to make it as cheap and as trouble free for all my family.

so, are these my only viable options?

do i just arrange to get a mortgage to buy the house (incurring all the fees that accompany a mortgage)

OR

do i agree with my father/aunts to sign over the house to me and i will pay them the £68k (80k value less the £12k i am going to be paid back? thus elimating all estate agents fees, mortgage arrangement fees and all the other fees applicable to buying a house. not quite sure what else as i have never bought a house before)

this leads to my next question, i would in theory have £30k to give to my family straight off leaving a shortfall of £38k outstanding to pay them

what could i do to raise this?

can they sign the house over to me and then i would effectively re-mortgage it for £38k (this will incurr all the fees i was hoping to avoid)

or could they sign the house over to me and i take a secured loan out against the property for £38k? thus avoiding all the additional solicitor, eastate agent, mortgage arrangement fees (but the potential pitfall being a larger % rate to pay the loan back)

i am just trying to figure out what would be the cheapest/easiest way to do it

additionally i have outgoings applicable to a personal loan, car finance and a credit card. but these will all be paide off in the next 18 months. i have never owned a property before

many thanks for reading this

i look forward to any comments/advice

Senior_Paper_Monitor

No need for estate agents

5 - 10% normally accepted as 'sales costs' if house was sold for distrubution under estate division, and therefore discounted for family sale.

Who is/are the executors ?

Mortgage is, in most circumstances, far more efficient than secured loan (and surprisingly some secured loan specialists have trouble placing charge on unencumbered property). Secured loan will also have set-up costs (solicitor etc) either as such or built into rate..

doughuelas

Senior_Paper_Monitor wrote: »

No need for estate agents

5 - 10% normally accepted as 'sales costs' if house was sold for distrubution under estate division, and therefore discounted for family sale.

Who is/are the executors ?

Mortgage is, in most circumstances, far more efficient than secured loan (and surprisingly some secured loan specialists have trouble placing charge on unencumbered property). Secured loan will also have set-up costs (solicitor etc) either as such or built into rate..

Thanks for such a speedy reply

I have no idea who the executor is (didnt want to get too heavy on my gran regarding preparing for her death etc at this stage, wanted to give her sometime to accept what the docs have said); my father live down South so it wont be him. i am assuming that it would be one of my aunts, but they have said that they would prob to struggle to deal with most things once she passes

i am pretty sure i will deal with most things - with their authority of course

would a straight mortgage better suit me or would an offset mortgage be somethinig worth looking into?

many thanks

Senior_Paper_Monitor

That all depends upon your detailed personal/family circumstances, finances and plans/ambitions.

I suspect you find the services of a mortage adviser useful.




..... and as an afterthought, as you are not aware who executor is - are you sure that the instruction has been incorporated into the will (probably by codicil) - I am not accusing anyone of cheating, it is just that such things often 'slip by' by peopel are old/ill etc.

doughuelas

Senior_Paper_Monitor wrote: »

That all depends upon your detailed personal/family circumstances, finances and plans/ambitions.

I suspect you find the services of a mortage adviser useful.




..... and as an afterthought, as you are not aware who executor is - are you sure that the instruction has been incorporated into the will (probably by codicil) - I am not accusing anyone of cheating, it is just that such things often 'slip by' by peopel are old/ill etc.

Hi regarding your concern about the executor etc i honestly cannot give an answer...

i am aware that a man from a company visited her at home last week to iron out all the details. they apparently keep a copy of the will and send her a copy of the will

as i have mentioned earlier i have not been too intrusive by badgering my gran on what will happen when she dies etc, i can only imagine how she feels right now and do not want her thinking that i view her as being on deaths door

regardless of the executor issue etc my father/aunts are aware of the money i have paid and it will all work out one way or another in the end

thank you for your concern

i really appreciate it