inherited house mortgage advice

DVardysShadow

Frozen_up_north wrote: »

I am just about to inherit some property as part of a will and have a buyer already lined up, however when they went to see a mortgage advisor at their bank, he said because the property hasn't been owned by me for more than 6 months they couldn't offer a mortgage on it! It might be a misunderstanding if they said I didn't actually own the property at the time they asked, but I suggested they try elsewhere...

Is this a common problem as it must happen regularly with inherited property, to me it sounds like the bank weren't interested and just found an excuse not to lend. They are only asking for about 40% of the house value for a mortgage.

Anyone else suffer from this "jobsworth" approach to buying property recently inherited?

Please start a new thread. The Original Poster will be back later with answers to some questions and we can do without having 2 conversations going on - particularly when you problem does not really share anything much in common with the subject of this thread.

Restarted as new thread https://forums.moneysavingexpert.com/discussion/4035411

All responses to the quoted post to the new thread pls.

shortchanged_2

Firstly was your mothers house a total wreck?

Because these days turning a £40K profit or adding £65K value to a house at that end of the market doesn't happen much these days.

twelvegoldbars

ok guys back on for an hour will try to answer your questions for you and quote each one,again many thanx for this helpfull advice

twelvegoldbars

GMS wrote: »

Plenty based on the figures but may not be at great rates.

If the numbers are true you should be able to secure an offer of finance within 24 hours.

Equity is on your side as is the fact that you want to develop into a business

yes equity is on our side,if we sold the house tomorrow we would get around about 145k

twelvegoldbars

DVardysShadow wrote: »

Are you good for the 25k in your own name? It strikes me that it might possibly have less issues for you to get a secured loan to cover it than the 3 of you getting mortgage?

If you go down this road, adjustments will need to be made on ownership or on the split of profits afterwards.

Regardless of mortgage or secured loan, how are you planning to service this debt before you sell on? It strikes me that the other 2 may not be in a position to fund their share of the materials?

this may be possible for me to finance the works myself with a loan,other 2 brothers have no problem transfering there share to me to secure the loan,depending on the interest rate we could afford to do it 3 way split to service the interest on the loan,the loan would be solely for matirials.

twelvegoldbars

Wh05apk wrote: »

What are your long term plans for the property? Are you simply doing up to sell? If so a secured, or even unsecured loan may be better, a btl mortgage will have penalties, and is there for the long term to rent the property.

If you go btl route, you will be severely limited because of your incomes, possibly only aldermore or tmw if you are lucky.

long term plans are to modernise the property to a good standard,put on the market to sell,repay loan,and maybee turn a bad situation into a good one by securing our futures and move onto buy another house to renovate and sell

twelvegoldbars

DVardysShadow wrote: »

Yes, interest only mortgage. 'How will you service the loan?' means how will you pay the interest?

As I look at this, your brother on a Debt Management Plan will be breaking the terms of his plan to contribute and it looks like your other brother won't be able to either.

talking to my older brother today,we talked about his debt management plan,it is an "informal" dmp not "formal",and is apparently a charity run plan,as we speak he will be looking through all his paperwork to give some answers.

twelvegoldbars

Dave_Ham wrote: »

You need advice. Aside from the fact that is not clear if any of you have owned a property before, you need to know how deep your Brothers are in with their debts.

If the house/inheritance is appropriately declared it may change the balance of the DMP - depending who knows what you may find that also changes your plans.

I would have thought, raise the money quickly, do up quickly, sell on quickly and then quickly help your Brothers to pay back their debts and then support them going forward without debt.

All the best

none of us has never owned a house/property before,brother 2 owes 15k,brother 3 owes around 13k,getting this property modernised and sold will allow other 2 brothers will wipe there remaining debt off,and we go from there.

twelvegoldbars

DVardysShadow wrote: »

Dave is right, the inheritance itself could cause problems for the DMP.

Thinking on this some more, has the house been passed on from the executors to the inheritors yet? And is there any money in the estate to be inherited?

I think I would be inclined to leave the house in the estate and use the estate money to do it up if this was possible. It would probably cause less problems to the brother in a DMP to do this.

we were not executors to our mum,she had no will or didnt get around to doing it anyway,our solicitor applied for "letters of administration" which has been granted,the house is in our names now,the only avaliable assets was just the house,there was no money at all in her estate,probate ,admin letters,transfer of house is all completed.

twelvegoldbars

shortchanged wrote: »

Firstly was your mothers house a total wreck?

Because these days turning a £40K profit or adding £65K value to a house at that end of the market doesn't happen much these days.

the house as it stands is totally in livable condition,just needs modernising/updating.