Negative equity property bequesthed in Will

[Deleted User]

Sadly, my Mother passed away last January. At the time of her death she was resident in a care home, although she still part-owned a mortgaged flat. (The flat is jointly-owned with a 'retirement property' firm.
In her will, Mum left me her entire estate (I was also named as sole executor). Her 'entire estate' consists only of the flat - she had no savings or valuable items. However, the flat is in negative equity ... at least, I think 'negative equity' is the correct term ... what I mean is that the debts attached to the flat exceed its market value.

The debts consist of the outstanding mortgage (plus arrears), and an accumulated bill for the service charges (£100/week) that were still fully payable even though Mum hadn't been living there for a number of years.

My question is this ... can I (legally) refuse to have anything to do with the flat? I can really do without the stress of dealing with what appears to be quite a complex financial situation; and I can't afford to hire a solicitor.

Mojisola

A beneficiary can refuse an inheritance but it's complicated as you are also the executor - a case of having to wear two hats. You will still have to deal with the flat as executor even if you turn down the inheritance.

Do you also want to renounce your position as executor?

missile

Most solicitors will give a free initial consultation. I would get a valuation for the property and collate all the paperwork relating to the debts and ask for his opinion on how best to proceed.

dzug1

You can refuse to have anything to do with the whole situation and leave it to your mother's creditors to sort out

System

She can't bequeath you the flat because she didn't own it. To settle the estate, it needs to be sold and the debt added to the estate. Any moneys available in the estate are then paid off in the normal order e.g. funeral costs then HMRC etc. If nothing left then the creditors can go whistle.

You can not inherit debt

[Deleted User]

Many thanks for the replies.

An added (bizarre) twist to the situation is that the 'small print' on Mum's documents re: the flat, state that it has to be restored to 'as new' condition before the retirement homes company will allow it to be sold.
They have contacted me to say that they want the kitchen units to be replaced; they want it to be re-decorated throughout; and they want it to be fitted with new carpets (!) I can't afford to do any of this ... and I don't actually see the point, as it doesn't seem as though there will be any profit from the sale.

I shall assume 'ostrich position'!

Mojisola

ZED wrote: »

An added (bizarre) twist to the situation is that the 'small print' on Mum's documents re: the flat, state that it has to be restored to 'as new' condition before the retirement homes company will allow it to be sold.
They have contacted me to say that they want the kitchen units to be replaced; they want it to be re-decorated throughout; and they want it to be fitted with new carpets (!) I can't afford to do any of this ... and I don't actually see the point, as it doesn't seem as though there will be any profit from the sale.

I shall assume 'ostrich position'!

As the agreement would have been with your Mum, good luck on them chasing that up!

sleepless_saver

You're not responsible for the debt or for getting the house sorted, but as executor you are responsible for the administration of the estate. In your shoes I would be declining the executry, as it sounds like an expensive and stressful minefield. The Probate Service can probably advise you of the procedure.

missile

ZED wrote: »

....I shall assume 'ostrich position'!

IMHO that is rarely the best thing to do.

[Deleted User]

sleepless_saver wrote: »

You're not responsible for the debt or for getting the house sorted, but as executor you are responsible for the administration of the estate. In your shoes I would be declining the executry, as it sounds like an expensive and stressful minefield. The Probate Service can probably advise you of the procedure.

Many thanks for the advice ... I'll try that.

Archergirl

Sorry for your loss, what a lot you have to deal with as well as grief, hope it works out OK for you soon x