Inherited A Property but...

JimmyTheWig

getmore4less wrote: »

NO.
Just the amount to cover the debts in the estate(they in effect own the rest allready).

They would only need a mortgage for the value of the debts, I agree. But that would also be the purchase price...

steveeo wrote: »

I think the estate would allow us to buy this property for lets say £16000 to cover the debts but the property is worth a lot more than £16000

Though I guess this would count as some sort of gifted deposit? Which some lenders (still) allow?

holly_hobby

getmore4less wrote: »

Thats clearly rubbish or no one could buy a house(if they needed a mortgage).

The ownership and raising the mortgage happen at the same time as it would for any house purchase, they are just buying from the estate just as what would happen if the estate had to sell to someone that needed a mortgage.

No you clearly don't understand the purchase, sale and mortgage process.

In the event of a purchase, the purchaser becomes the legal owner on completion, and at no point before.

Completion occurs when the the legal tsf of equity and ownership between the parties is effected. Facilitated by the repayment and confirmation of free title from the existing mortgagee and/or other registered charges, OR if no mortgagee/charges, the pch funds transferred to the Vendor - which completes the pch and sale process.

The issue we have is there appears to be no capital in the estate, and the
OPs partner has a poor credit history - which will obv negatively effect any mge application. (which as the will stands,the lender would classify as a remortgage app, as she is the beneficial owner with legal registration to be completed following probate).

It appears that there is £1300 available on a credit card, which could satisfy the debt IF permissible, and all other debts can be discharged from the estate without dragging the property into the mix.

Hope this helps

Holly

getmore4less

steveeo wrote: »

Jimmy, we are looking into this but I have a feeling that a lot of people on MSE would take it that this would be done for the wrong reasons, our own benefit and profits, I have lots of posts on the RTB on here and they always end up in arguments.

Thanks

If still looking at the RTB then I would get the research done ASAP in case you need to delay the inheritance side of things for any reason to make it work.

Bottom line for one or both will come down to how much you can raise and fund, so credit/income will be key and a good broker may be needed if there is any issues in that area.

steveeo

holly_hobby wrote: »

No you clearly don't understand the purchase, sale and mortgage process.

In the event of a purchase, the purchaser becomes the legal owner on completion, and at no point before.

Completion occurs when the the legal tsf of equity and ownership between the parties is effected. Facilitated by the repayment and confirmation of free title from the existing mortgagee and/or other registered charges, OR if no mortgagee/charges, the pch funds transferred to the Vendor - which completes the pch and sale process.

Hope this helps

Holly

So if this is the case then would we still be able to buy it from the estate at what the estate wants which will be the same amount as the debt?
Thanks again for the information Holly

steveeo

getmore4less wrote: »

If still looking at the RTB then I would get the research done ASAP in case you need to delay the inheritance side of things for any reason to make it work.

Bottom line for one or both will come down to how much you can raise and fund, so credit/income will be key and a good broker may be needed if there is any issues in that area.

I think I understand what you mean thanks

getmore4less

holly_hobby wrote: »

No you clearly don't understand the purchase, sale and mortgage process.

In the event of a purchase, the purchaser becomes the legal owner on completion, and at no point before.

Completion occurs when the the legal tsf of equity and ownership between the parties is effected. Facilitated by the repayment and confirmation of free title from the existing mortgagee and/or other registered charges, OR if no mortgagee/charges, the pch funds transferred to the Vendor - which completes the pch and sale process.

Hope this helps

Holly

The detailed mechanism is not relevent
The OP buys the house off the estate just like anyone else would.

holly_hobby

OP,

Have a read through .....


https://www.gov.uk/valuing-estate-of-someone-who-died/valuing-debts-and-liabilities


http://www.hmrc.gov.uk/inheritancetax/how-to-value-estate/debts.htm



https://www.gov.uk/wills-probate-inheritance/if-you-inherit-property

Your best approach is to see if he lender will allow your partner to assume the mortgage (it being so small, and I would imagine a pretty decently low LTV, I can't see why they would say no) - if they say no - then consider the options.

Also ensure that the mge is being paid from the estate, or the lender is aware of and agreed to suspend mge payments until the estate is settled.

Hope this helps

H x

getmore4less

holly_hobby wrote: »

OP,

Have a read through .....


https://www.gov.uk/valuing-estate-of-someone-who-died/valuing-debts-and-liabilities


http://www.hmrc.gov.uk/inheritancetax/how-to-value-estate/debts.htm



https://www.gov.uk/wills-probate-inheritance/if-you-inherit-property

Your best approach is to see if he lender will allow your partner to assume the mortgage (it being so small, and I would imagine a pretty decently low LTV, I can't see why they would say no) - if they say no - then consider the options.

Also ensure that the mge is being paid from the estate, or the lender is aware of and agreed to suspend mge payments until the estate is settled.

Hope this helps

H x

The current mortgage is not the issue they have allready said they can pay that off if needed.

It is the rest of the estate debts that are the stumbling point.

The OP would need the lender to agree an increase in the mortgage

Agree the current lender is the first port of call re any borrowing.