Saffron1

Saffron1

Hi, some advice needed please, I and some siblings have inherited a house, there is £103.000 owing on the existing mortgage, as me and my husband are currently renting, we would like to know if it is possible that we can 'take over' or apply for a mortgage for that outstanding amount, our salaries are £28,000 combined and have £5,000 deposit, any advice would be welcome, thanks in advance.

laurel7172

You can't "take over" a mortgage. You would have to apply in your own names.

How much equity is in the property and how do you plan to pay the siblings their share?

ValHaller

How much is the property worth and what share do you expect to get? And are there any debts on the estate other than the mortgage?

Saffron1

Thank you for the swift responses, the property is being valued this week, but we think its worth about £200.000, Husband is the youngest sibling, two elder ones, don't want a share, but the third probably will, we were hoping to maybe re-mortgage after a while to pay the third their share, all four are named in the will, and it has got to go to probate, I know its getting a bit legal, but will the third sibling be able to force the sale?

Saffron1

laurel7172 wrote: »

You can't "take over" a mortgage. You would have to apply in your own names.

How much equity is in the property and how do you plan to pay the siblings their share?

, thank you for your swift response, I have posted again, instead of replying to you! first time on a forum, can you tell:rotfl:

ValHaller

Saffron1 wrote: »

Thank you for the swift responses, the property is being valued this week, but we think its worth about £200.000, Husband is the youngest sibling, two elder ones, don't want a share, but the third probably will, we were hoping to maybe re-mortgage after a while to pay the third their share, all four are named in the will, and it has got to go to probate, I know its getting a bit legal, but will the third sibling be able to force the sale?

OK, plan on what the will says - any concessions by the elder siblings should be discounted and taken as a bonus if they materialise.

Suppose for simplicity, we say that the house is worth £200,000 and the mortgage is £100,000. That leaves equity of £100,000.
Your (your OH's?) share is £25,000. Put with the £5000 you have already, that gives you equity of £30,000

Therefore you need to find a mortgage of £170,000. You will pay £100,000 to clear the mortgage and £75,000 to buy out your siblings. This mortgage is 6 times your earnings which is probably a stretch too far. Even if the elder 2 forgo their £25,000 each in favour of you and your OH that leaves you £120,000 to find which is 4.25 times income - which is probably near the limit for your salaries.

Yes, the 3rd sibling could eventually force a sale through the courts if necessary. However, taking it to court would be unlikely if you bought them out for what their share would be anyway.

It may be possible for the older siblings to mortgage jointly with you while you live there and cover their mortgage share as rent, but this might be difficult for many reasons and you would need specialist advice.

Thrugelmir

Saffron1 wrote: »

all four are named in the will, and it has got to go to probate, I know its getting a bit legal, but will the third sibling be able to force the sale?

The executors of the will (or the estate) need to follow legal protocol and not put personal interests first. Doing so puts executors personally at risk.

Saffron1

Very helpful, thank you