Inheritance

Jodyjames16

Hi

Sorry there does not seem to be an inheritance board so I'm posting in this one. My Mum has recently written a Will and she has given her husband rights to live in the house for his remaining life, but the property will be in my name. It's under 350k so I wouldn't be eligible for tax. However, I'm concerned that this will not benefit me at all? In the next few years I'm hoping to buy my first house but if something happened to her (which I hope it wouldn't) would I be able to get a mortgage on the back of owning her property even though legally I cannot sell it or rent it out as her husband is living in it? She seems to think this is the case. If she is leaving the flat to her spouse to live in even though it's in my name isn't it effectively like leaving it to him as I will have my hands tied with a property that I cannot do anything with. What is the benefit of having a house/flat in my name if I cannot sell it or rent it out? Would I be able to remortgage it and leave her spouse in it? I hope that it won't come to any of this but I'm trying to be practical and discuss it with her now.

I'll appreciate any advice/assistance.

TheChillPill

Usually, you would expect her to leave it to her husband and (assuming he goes after her) it would be his will that decides where it goes to thereafter. Sounds to me like this is her way of making sure it eventually goes to you, but without making her husband homeless in the process.

I don't believe there is anything stopping you from remortgaging it, but I may be wrong - I know of someone that buys properties with protected tenancies, and he has no issues getting mortgages on those - which would come under the same rules, I assume.

Be careful either way, I'm sure you don't mean it to come across this way - but you sound a little ungrateful. I'm sure her advisors would have initially advised her to leave it to her husband first, so it already sounds to me like she's trying to do best by you.

dazza.mk

TheChillPill wrote: »

Usually, you would expect her to leave it to her husband and (assuming he goes after her) it would be his will that decides where it goes to thereafter. Sounds to me like this is her way of making sure it eventually goes to you, but without making her husband homeless in the process.

I don't believe there is anything stopping you from remortgaging it, but I may be wrong - I know of someone that buys properties with protected tenancies, and he has no issues getting mortgages on those - which would come under the same rules, I assume.

Be careful either way, I'm sure you don't mean it to come across this way - but you sound a little ungrateful. I'm sure her advisors would have initially advised her to leave it to her husband first, so it already sounds to me like she's trying to do best by you.

You should be able to remortgage, but there might be extra paperwork involved. Namely your stepfather signing to agree that he had no rights of possession in the event of the property being repossessed I believe. You might want to post on the mortgages board though if you want more specific advice on that specific topic.

Jodyjames16

Thanks for both of your replies.

In regards to sounding ungrateful - it's because it's the home that I grew up in (from 6 months old) and my step father only came along in my late teens and they only married last year. I was the one who persuaded my Mum to buy the flat (it was ex-council) as I used to work for the council and I was aware that the discount would stop soon (this was back in the late 90's) and she always said that I'd get the flat. I always presumed he would live in it for a few years if god forbid anything happened and then eventually move out - because his parents are very old and both still alive and he will get their inheritance. But in the will it has been stipulated that he can move out and rent the property out even though it will be in my name and I think that was the bit that surprised me. I could have a property with no rights to it for 35 years or something... so in paper I have something but not really as can't do anything with it - I was worried my hands would be tied. But I am grateful that my mum is leaving it to me as I'm aware some parents might just leave it to their spouse. I may post in the mortgage thread too. Thanks again.

realshannon

I am not sure if you can, but surely you can rent it to him as it would belong to you and he could in turn claim housing benefit and council tax assistance. I know it sounds odd but sure just because it is family, doesn't mean they have to live there rent free. that way he is safe, you still have the house as landlord and gain from a little bit of rent - ask the housing benefit team for your area and see, or read up online, how it all works. sure you have to have an assessment done for what is considered to be reasonable rent and go from there.