Buying Grandmothers house......how???

loubeelou_2

I have a horrible situation which I need advice on:o

My OH's Grandma is not very well indeed and unfortunatley will not be with us for much longer. We would like to buy her house and I have loads of questions that we are embarrassed to ask!!!

The house will be bequethed to the MIL, her sister and brother. We don't think that any of them will be interested in buying.

Is there any way that we can get round things like stamp duty, Inheritance tax etc?

The other dilemma is that my mortgage discount period is ending in March. Do I renew? Will I get penalised if I take one out and then need to remortgage in a few months time? For obvious reasons I don't know timescales.

Any help that you guys can give will save me some embarrassment and hopefully save me some money.

Many thanks!!!

specs_3

First dilemna, sorry can't help.
Second one, Check your lender because it varies, but in general after the discount period it will revert to the lenders normal rate, but some do have an overhang.

loubeelou_2

Many thanks specs.

I'll give my mortgage company a bell and see if they offer the overhang...they can only say no!!

specs_3

You don't want an overhang, this means that, say your special rate is for 2 years with an overhang of 2 years. You can't sell/remortgage for a total of 4 years, even though the special rate is for two.

Am I making any sense?

Robert_Sterling

Inheritance tax may come ito play if the total assets exceed the Nil Rate Band which is £285,000.

The house may be sold to you by the executors at a price which reflects the fact that they will avoid paying an estate agents fee. This would not be "an arms length sale". They should have the house valued.

Even if they just gave it to you I think someone would have to pay stamp duty on its value.

loubeelou_2

Specs - I understand what you mean now....one to avoid then!!

Robert - I don't think the assets will be over 285,000 so hopefully that rules IHT out then. Stamp duty is going to be the fly in the ointment then!!!

Thanks for your advice!

irnbru_2

loubeelou wrote:

The house will be bequethed to the MIL, her sister and brother. We don't think that any of them will be interested in buying.

Of course not, they're inheriting the house.

The main problem is three joint owners which means three sets of minds to convince.

BTW is it the MIL's siblings or the Grandma's siblings?

I think you just need to be upfront about your intentions (after they inherit).

loubeelou_2

Thanks irnbru!

OK not buying but wishing to get hold of the other two thirds!!

It is my MIL's siblings. The MIL thinks its a good idea - like you say just have to convince the other 2 now