Help after my Mothers death

MissMeadles

Hello everyone

I need a bit if advice please. My Mother died very suddenly 2 weeks ago without a will. My Dad died 16 years ago & we've just started probate with the Co-Op.

My question relates to the house. I am one of 4 siblings who I believe all get an equal 25% share of the estate. My Mother lives in a house worth approx £160k which she owned outright. I currently live in a house worth about £100k although were in negative equity. Our mortgage is currently £115k we bought just before the crash in 2007. What I'd like to do is move into my Mothers house, sell ours & split the £100k between my 3 siblings so they get their inheritance, I'd get no cash but have the house. My eldest sister is saying this is not possible. We can't transfer our existing mortgage to my Mothers property & sell our house. Does anyone have any advice on this?

Thanks in advance

joerugby

If you sell your house all of the proceeds will go to the lender, who will also be after you for the additional £15,000

Even if your scheme worked, you would need £120,000 not £100,000 to pay off your siblings.

Why not stay in your own house, sell your mother's (with the agreement of your siblings) and use your share of the proceeds to pay down some of your debt?

getmore4less

Why are the co-op involved do you have an estimate of their charges?

The issue you have is(using just the info given before the costs etc.)

House is worth £160 share with 4 people so you get £40k each.

You buy the house so need to raise £120k to buy the others out(not the £100k you think)

Your house is worth £100k but has a debt of £115k

You need £135k mortgage 85% can you afford that.

thorsoak

You might be able to"port" your mortgage/terms over to your mum's property, depending upon the terms of your current mortgage.

However, you will still have to repay £115,000 to your mortgage company in order to complete the transaction on your current home - so you would be -£15,000. And as joerugby says, you would still need £120,000 to give your three siblings their 3/4 of the value of your mum's house - so your sister is correct.

MissMeadles

I class my Mothers house as my family home, so it's more than bricks & mortar to me. I was thinking I could just transfer my £115k mortgage to my Mothers house, thinking along the lines that as long as the mortgage providers get their money back would it matter? Although I'm seeking advice about whether it would be as simple as that. I just don't know who to go to for advice in the first instance.
I know all 4 siblings would get an approx £40k share, although 2 of them have said they'd rather see us have the house and accept less, but my eldest Sister wants it to be all equal. I'm thinking £100k split 3 ways is not a lot less than £160 split 4 ways.
I'm not money-grabbing just want to hold on to my family home if possible. I lived there for 25 years and both my parents passed in that house meaning a lot of memories are there.
Am I being unrealistic thinking that we'd be able to keep it? Whom should I get advice from? IFA, mortgage broker, solicitor?

MissMeadles

The co-op are involved as they arranged the funeral. They sent their legal team to us and it seemed easier to go with them as they could deduct the cost of the funeral from the estate rather than us paying. My Mam had her house worth £160k & approx £10k in the bank.
The funeral was £4k and their legal fees are £3900 so that pretty much wipes out her cash, leaving the house as the estate.
Thanks for all your help, don't know where to start. In shock from her death, just don't feel I can cope with all of this on top.

joerugby

MissMeadles wrote: »

The co-op are involved as they arranged the funeral. They sent their legal team to us and it seemed easier to go with them as they could deduct the cost of the funeral from the estate rather than us paying. My Mam had her house worth £160k & approx £10k in the bank.
The funeral was £4k and their legal fees are £3900 so that pretty much wipes out her cash, leaving the house as the estate.
Thanks for all your help, don't know where to start. In shock from her death, just don't feel I can cope with all of this on top.

Your Mum's bank would normally release the money to your chosen funeral director to pay for the funeral.

If you have not yet signed up with Coop Legal Services you may be able to avoid using them for probate and do it yourselves, thus saving the £3,900

hardpressed

You can only get probate if there is a will, what you will need are letters of administration. Sound's to me that you don't need to involve the Co-op, the bill from the funeral directors is paid from the Estate, you take or send the bill into you mum's bank and they will pay it directly. If the Co-op are telling you differently then they're having you on.

McKneff

I am really sorry about your mam, I had a heart attack a couple of weeks ago, and now reading this I am definitely going to update my will and sort my affairs out.


Dying intestate means you don't need probate, I believe someone above has said that. The Coop used to be really family orientated but not any more Im afraid, they are just as money grabbing as the rest of them.
I hope all goes well for you.

getmore4less

You still need the grant that probate or letters of admin will provide.

For practical purposes they are the same thing, the subtle legalities don't impact most people, it's the same set of forms just a few different boxes get ticked.

[STRIKE]It costs less than £120 to get the grant,[/STRIKE]

it costs £215(1) for the grant, for simple estates like this one seems to be it is trivial so you don't need the co-op at £3900, you can employ solicitors as needed to do little bits.

If dads estate was not handled at the time of his death there may be a complication if he is still part owner but you can have a solicitor help with that if needed for a few £100 and it may be that the house is not registered so another small complication with the land reg but again not expensive so get help.

Back to the house if the group wants to keep the house then that will be possible but it may be that the "cash" pot to share out will not be the £120k it needs to be if the house is worth £160k.

If they are happy to have less or you can owe them the rest then thats a way forward.

Porting the mortgage may be an option but it will come down to how much you can afford as the rules have changed.

If you can't port then a new mortgage will be needed.

The mortgage board can help with this and cover the issues with affordability.


Stating point.
Get your house valued for a realistic selling price.

Talk to your lender and a good mortgage broker about what you want to do and how much you can borrow.

This will help decide if the plan is feasible.
Once you have done those 2 things you can then look at the next step.

In the mean time secure mums property.


What's your income? I can have a guess if this is a possible or a nonstarter



(1). http://www.step.org/probate-court-fees-rocket

EasySolution

The costs of a personal application to the Probate Court increased with effect from 22April 2014 Now £210

This is for applications received after this date.