Probate and Mortgage

PassedAtFailing

I hope someone can give me a bit of advice. Unfortunately one of my parents passed away a few months back, the property was left to me and my sibling. It's currently going through probate.

Is there anyway I can buy my sibling's share so that I own the property? I would need to get a mortgage to be able to do that and I have offered an amount which would be the very most I could actually get on a mortgage. If it the will states everything was left 50:50, how would their share be calculated and the market value? Or, if it's in agreement, could it be any value?

Would I be classed as remortgaging or a first-time buyer? At what point in the probate process could I actually move on with my own mortgage application?

kingstreet

Once probate has been granted, the two beneficiaries can reach any agreement they choose about the disposal of the property.

If you decide to buy the other beneficiary's share, you will apply for a mortgage to purchase his/her equity, completing a transfer of equity so the property and the mortgage will be in your sole name.

You would normally use a purchase-type mortgage product to purchase the equity, but the lender of your choice should be able to tell you what products they apply to such a situation.

PassedAtFailing

kingstreet wrote: »

Once probate has been granted, the two beneficiaries can reach any agreement they choose about the disposal of the property.

If you decide to buy the other beneficiary's share, you will apply for a mortgage to purchase his/her equity, completing a transfer of equity so the property and the mortgage will be in your sole name.

You would normally use a purchase-type mortgage product to purchase the equity, but the lender of your choice should be able to tell you what products they apply to such a situation.

Thank you for your reply, I really appreciate it.

I want to be sure that I can actually get a mortgage. Would it be possible to put in an application before probate completes? It's been about four months since probate was applied for.

kingstreet

You'll need a solicitor to handle the conveyancing, so why not contact a firm and ask them how to time your mortgage application? I can't see why you can't apply now, but you won't be able to complete until after probate is granted.

The only potential downside is the length of time it might take for probate. One case remains unsettled seventeen years after the death of the individual concerned.

Mortgages have a maximum shelf-life of six months and if you can't complete in that timescale, you may have to apply again, incurring the same application costs and fees.

getmore4less

You need to talk to the executors.

A mortgage application can happen at any time but the executors normaly need the grant to be able to do anything with the property.

As long as they can value the estate and agree any IHT due with HMRC there should not be much delay in getting the courts to give the grant.

You will have a valuation that was used to make the probate application that will be the starting point for any negotiation as benifitiaries.