Inherited property mortgae advice please

bethg2009

Ok might get a little confusing here but please bear with me
Mum died last year and left her property to me solely under the proviso I would sell my house and move into hers within 2 years (which is what I want to do) and pay my 3 siblings £25,000 each within that time, rather than selling it and sharing proceeds - she wants the house to stay in the family.
Mum's property has been valued at £135,000
I have just sold my flat for £73,000 today, I owe £13,000 on the mortgage and £5500 on a cpl of cc's that I'd like to clear too. So in effect will be left with £52500'ish after estate agent and solicitor fees aswell.
Obviously that is not leaving me plenty to pay £75,000 to my sisters. The house is quite delapetated and in need of a complete overhaul, new bathroom, kitchen, doors and windows and new central heating system complete refurb basically.
So question is what do I do? What can I do?
Would it be possible to apply for a new mortgage as if I was purchasing the property? (I'm not) Or can I remortgage on the property's value based on my current mortgage now? Should I wait a while to try and remortgage later next year (I have up until December 2014 before they need paying) But I'm going to need cash to complete the work that needs doing too.
I really have no idea!!
I really do not want to sell the property I want it to be my "forever" home as it's the house I grew up in.
Any advice or guidance would be brilliant and greatfully appreciated!!

little_miss_muppet_face

Yes, you can just take a mortgage (Release some equity) out of your mums house once you take it on.

getmore4less

You buy the house from the estate giving the estate the £75k(+ what ever else is needed) to distribute to the relatives.

Do it this way rather than take on the place then try to mortgage.

Get a mortgage for the amount you need, or even more to give contingency,

consider an offset for cash flow if the building work will be phased..


BTW making you sell your place was probably not enforcable.


what sort of income do you have that will determine the largest mortgage.

tBagpuss_2

Yes, you can mortgage the property. It may be possible to 'port' your existing mortgage - when you say you have sold today do you mean completed. or agreed a sale? If you have already completed then you would not be able to port the mortgage. (porting may be a good thing if your current interest rate is lower than new mortgages)

From what you're saying, it sounds as though you need around £22,500 plus whatever it will cost to renovate the property, so you would need to look at your mortgage capacity and affordability. a £50K mortgage would give you £25K to do the repairs, obviously you would need to consider whether that is affordable for you, and if not, get quotes for the works which need doing and decide which are most urgent and which can wait / you can do yourself.

bethg2009

Thanks for responses so far, who should I be speaking with then in first instance my current provider ( Woolich) or maybe seek advice from a broker??

Mojisola

bethg2009 wrote: »

Obviously that is not leaving me plenty to pay £75,000 to my sisters.

I have up until December 2014 before they need paying

What's going to happen to you if you don't pay them the money by the set date?

bethg2009

[QUOTE=_what_sort_of_income_do_you_have_that_will_determine_the_largest_mortgage.[/QUOTE]

My salary is 26,600 I have hardly any savings (around 4k), but my main concern is I have had a cpl of late (literally a day!) cc payments over the past few years and am worried that I might now struggle to get a new mortgage in the future, because of my previous stupidity.
Thanks

getmore4less

Probably should have been considering this before you sold as part of a sell buy senario asking cuurent lender what they could offer on a port with top up especialy if the cuurent mortgage is a good rate.

If you move in, do the place up with your cash, what will it cost and what will the place be worth?

if you say use £25k, you then need another £50k thats < 2*salary and probably LTV <40%(done up) and should have 6 month-12 month clear a broker will be able to tell you if that is going to work.

bethg2009

My ideal scenario would be -
Use the money from the sale of my flat to do up mum's house, would love to add a little extension too. And then later in the year try to remortgage the 75k on her house, looking at it as a 56% ltv at the moment, I just don't know how pheasable that would be in reality.

ValHaller

bethg2009 wrote: »

My ideal scenario would be -
Use the money from the sale of my flat to do up mum's house, would love to add a little extension too. And then later in the year try to remortgage the 75k on her house, looking at it as a 56% ltv at the moment, I just don't know how pheasable that would be in reality.

That's back to front. Mortgage now, pay off your siblings so they get their inheritance ASAP and you are not caught out if for some reason you cannot get a mortgage. Then use your cash to do the work on the place.