remortgage on a inherited house

davegriff

hi, this is my first post so I thank you in advance for any advise given, my mother passed in 2012 and I was the sole beneficiary to her house , I got probate through very quickly as I was a only child and the only person named in the will, however out of naivety I did not change the title deeds with the land registry , it is only recently that we ( me and my wife) are thinking of pulling 40k out of the house on a buy to let to put towards paying off debt and as a deposit on another buy to let property, we currently have a tenant in the house and my personal tax code was adjusted to cover this income, but I have read that mortgage companys like you to own the property 6 months before remortgaging, we have owned since sep 2012 but never changed the land registry until now, do you think the probate certificate is enough proof of ownership?

Thrugelmir

A link for you .

http://www.landregistry.gov.uk/public/when-a-property-owner-dies


If in any doubt consult a solicitor to effect the transfer. As the Land Registry while assisting with factual enquiries won't provide a service.

davegriff

thanks, I have already instructed my solicitor and spoke to the land registry, they are both under the impression that my proof of ownership will come from the probate and will that I have but both have stressed that they have not come across or had dealings with this situation so its no guarantee , I was hoping somebody had had a similar experience

davidmcn

The wording in the CML Handbook is "Please report to us immediately if the owner or registered proprietor has been registered for less than six months", so strictly speaking the solicitor would have to flag it up - but I would have thought it's the date you became entitled to the property which is relevant. It's not a situation which is risky to the lender.

amnblog

Use a broker to assist you with this. Lenders will have differing views. This will not necessary be about when you were 'legally' the owner and more about when the lender's systems can identify you as the owner.

Also the whole question of whether it is a 'remortgage' if registered ownership is changing at the same time is also an issue.

m_13

Lenders treat probate differently. For example regarding the 6 month ownership rule, Bank of Scotland say:

Where you have obtained evidence that the customer inherited the property following the death of the previous owner and provided you confirm this to us in writing, the preceding sentence will not apply.

davegriff

quick update, thanks for replies, I have today received my mortgage offer from virgin and as part of this offer I had to move solicitors to one on there panel, glad I did as it turns out my solicitor is more of a family law, on meeting with my new solicitor who luckily is opposite my old one she assured me that the 6 month rule is not taken into account when it regards probate as it proves were the property came from and there is no risk involved so considering how long I've had the house this will not be problem and just case of producing my probate cert and will, hope this helps others if they have a similar situation,

kingstreet

VM doesn't operate the six month rule anyway.