Inherited A Property but...

Mattygroves2

You need to check the terms of the will as it is possible that the debts (possibly the mortgage as well) have to be borne from the remainder of the estate and your wife gets the house free of all debts. It depends on exactly how the will is worded.

However, if there is not enough cash in the rest of the estate to pay the expenses and other debts then I suspect the balance will fall on your wife.

steveeo

Mattygroves2 wrote: »

You need to check the terms of the will as it is possible that the debts (possibly the mortgage as well) have to be borne from the remainder of the estate and your wife gets the house free of all debts. It depends on exactly how the will is worded.

However, if there is not enough cash in the rest of the estate to pay the expenses and other debts then I suspect the balance will fall on your wife.

Thank you, the wording of the will is full of lots of jargon so when the will is explained by the solicitors then this may be the case, my wife is worrying that the house will be sold ASAP and not given a chance to stop it being sold.

holly_hobby

Mattygroves2 wrote: »

However, if there is not enough cash in the rest of the estate to pay the expenses and other debts then I suspect the balance will fall on your wife.

No, the OPs partner is not responsible for settling any os debts of the decds estate - the executor does this from the estate or proceeds (ie sale of assets) of the estate - only after which may any bequests be apportioned from the residue.

If there are no funds within or available to the estate to settle the os mge or other debts, other than by selling the property, then that will be the route the executor must take - debts can't be written off until the estate has been exhausted and there is basically nothing left.

Their solicitor should be guiding here.

Hope this helps

Holly

steveeo

Thanks holly

getmore4less

antrobus wrote: »

The RTB seems to apply if it's "your only or main home". So long as it is your main home at the point of exercise, I'm not so sure it matters that you own another property, or that you intend to move elsewhere at a later date.

I would get this clarified as allthough you are not the legal owners of the property till it is transfered you are the benificial owners from date of death.

Also depending on the will the debts may come out of the other part of the estate first and not the house allthough you may want to raise the funds and pay them so the others can inherit more of their part.

getmore4less

holly_hobby wrote: »

No, the OPs partner is not responsible for settling any os debts of the decds estate - the executor does this from the estate or proceeds (ie sale of assets) of the estate - only after which may any bequests be apportioned from the residue.

If there are no funds within or available to the estate to settle the os mge or other debts, other than by selling the property, then that will be the route the executor must take - debts can't be written off until the estate has been exhausted and there is basically nothing left.

Their solicitor should be guiding here.

Hope this helps

Holly

If the OP can raise funds against the property then there will be no need to sell the house, the house can be transfered and the money put into he estate to pay off any debts.

There is no restrictions on distributions before all debts are paid as long as there are retained funds to pay the debts.

steveeo

getmore4less wrote: »

If the OP can raise funds against the property then there will be no need to sell the house, the house can be transfered and the money put into he estate to pay off any debts.

There is no restrictions on distributions before all debts are paid as long as there are retained funds to pay the debts.

We want to pay all the debts off so everyone else can have everything else left in the will, this seems the right thing to do as the property is the most valuable asset on the estate but to do this we will need to raise funds on the property.

I know the following might not be right but can this happen:

We can afford to pay the mortgage off that is left on the property as its only £1200, we then change the name on the deeds and then get our own mortgage and pay the rest of the debts off.

Can we get an official letter of our solicitors to state this?

If we can't get a mortgage then am I right in thinking that the creditors can demand the house is changed back to the granddads name and sold

I may be way off on the above but any advice will be great.

We are meeting with the solicitor next week but i am just trying to understand things and the law beforehand.

Thanks
Ste

Mojisola

steveeo wrote: »

We can afford to pay the mortgage off that is left on the property as its only £1200, we then change the name on the deeds and then get our own mortgage and pay the rest of the debts off.

I don't think the executor could let you take ownership of the house while the estate still owes debts.

getmore4less

steveeo wrote: »

We can afford to pay the mortgage off that is left on the property as its only £1200, we then change the name on the deeds and then get our own mortgage and pay the rest of the debts off.

That would probably not be possible.

The most likely process would be you buy the house off the estate with a mortgage/loan that covers the debts and whatever else the lender will give you.

Same as what you want just the things are in a slightly different order.


It will be down to your finances what will be possible.

Can any family other benificiaries help out.

Whats the value of the house and the rest of the estate,
If IHT is due it gets more complicated.

JimmyTheWig

Would it be possible to buy the RTB with a mortgage secured on the RTB above the purchase price?
I.e. what value would the mortgage company use for LTV purposes on a RTB? If they are getting a 45% discount it would seem crazy for the mortgage company to use the purchase price as the value - this isn't the same as a vendor taking the best offer they get on the open market.

So I'm wondering if the equity created in the RTB from the discount could be used to pay the debts? Then it could all be done in the right order. (Depending, of course, on how long it takes for a RTB to go through and how "poor" the credit history is.)