Can anyone help with figures please

dotchas

Need some help here so see if I have worked this out correctly:o

OK ,MIL passed away last year. three children including my OH
MIL had taken equity release on the house (now totaling 40,000:eek:)
We spent some money freshening up the house and replacing carpets etc
House not selling and equity release growing all the time

OH and I decided to buy the others out and BTL

OK so far ?

Now the figures

House price £123k

Expenses £4200

Equity release £40k

Selling expenses £1500

I am trying to work out how much we need to borrow.

OH will be using his share to help fund the purchase.

Thanks guys x

theartfullodger

Sorry to read about MiL

Presume you've asked equity release people how much they want - call me cynical but I'd be a little suspicious it may well be more than £40k. Do they perhaps want a share of the sale price - including the increase in value through sprucing up?? Hope I'm wrong...

KRB2725

The costs associated with the property are £45700. Based on your valuation of £123k (although I would question the valuation if it is not selling at that price). The net value to be shared between the 3 siblings is £77300. You therefore need to borrow two thirds of £77300 (£51700 approx) plus the £45700.

If the valuation is wrong though, you may well end up paying your OH's siblings an inflated value for their share at your expense.

Sorry for your loss.

dotchas

Thanks guys,

Our solicitor has been dealing with the equity release company. MIL took out £25000 about 5 years ago and the total now is just a few pence short of 40k.

The house was on the market for more than £123k (valued at £137:eek:)

My head is spinning with all the figures. I am not stupid (usually) but just can't get this straight:o

So we need to borrow two thirds of £77,300 = £51,700 +£45,700

OH will use his share of estate £25,800 so if we use £20k cash ,all we need to borrow is £51,700?????

No ,don't think thats right!

Oh my wee brain:o:o:o:o

Tixy

No you need to pay £51700 to pay off the other 2 siblings and £40000 to pay off the equity release. i.e £91,700.

If you have £20k cash, then you need to borrow £71,700.