Buying a house which has been left in a will

Jduk90

Hi,

I am one of 6 grandchildren, my nan has recently approached me to buy the house in question and the other younger grandchildren can get their share and keep it in the bank, she thinks I can use my share of the house as a deposit, is she correct? Or would I have to raise a deposit for a mortgage to buy the others out? She wishes to remain the house after I have purchased it.

dimbo61

" Left in will" but nan is living in house !
Will she pay rent ? Will you be a Landlord?
I think you will find very few lenders Happy with this idea.

Jduk90

Yeah she has a will leaving it to the gran kids but now thinks if I buy it and the others take their share I can use my share as a depsoit, I'm under the impression I will need to raise a deposit. And I will let her live their free of charge.

Mojisola

So the house hasn't been left in a will - it's Nan's home. There's loads of potential problems.

You will have problems getting a mortgage if your Nan is still going to live in the house.

If she gives away what you pay her for the house and later needs means tested benefits, she could be refused them.

Jduk90

Mojisola wrote: »

So the house hasn't been left in a will - it's Nan's home. There's loads of potential problems.

You will have problems getting a mortgage if your Nan is still going to live in the house.

If she gives away what you pay her for the house and later needs means tested benefits, she could be refused them.

Yeah it's all written up in a will to be split but now the other 5 are looking to get cash in the bank, so I buy the house and she remains in the home.

I just wanted to clarify I have to raise my own deposit, I tried to explain unless she dies I have no equity in the home and can't use that as a deposit, only once she has passed away will I have that option to buy out the other 5.

amnblog

Technically she can sell it to you at a reduced price, the difference between that and the purchase price being the deposit.


Her continuing to live there with you is a major problem for all but two lenders I know of.


You will need a really clued up broker for this one.

Jduk90

amnblog wrote: »

Technically she can sell it to you at a reduced price, the difference between that and the purchase price being the deposit.


Her continuing to live there with you is a major problem for all but two lenders I know of.


You will need a really clued up broker for this one.

I will have to sit her down and try and explain. And by any chance do you know the two?

Mojisola

Jduk90 wrote: »

Yeah it's all written up in a will to be split but now the other 5 are looking to get cash in the bank, so I buy the house and she remains in the home.

It's not their money - it's your Nan's and she may need it to fund her last years.

Jduk90

Mojisola wrote: »

It's not their money - it's your Nan's and she may need it to fund her last years.

Yeah I know, but she wants to split it all evenly, when I buy she takes the money and splits it.

Then she wants to live with me for the remainder.

I'll have to be on the ball with this one.

Thrugelmir

Jduk90 wrote: »

I just wanted to clarify I have to raise my own deposit, I tried to explain unless she dies I have no equity in the home and can't use that as a deposit, only once she has passed away will I have that option to buy out the other 5.

The issue for lenders is that your Grandmother retains an interest in the property. Should you default on the mortgage. Your grandmother has the right to remain in situ. The lenders have no ability to force the sale of the property. Hence their reluctance to advance mortgage monies on such terms.

amnblog

Jduk90 wrote: »

I will have to sit her down and try and explain. And by any chance do you know the two?

Yes I do but I would not tell you on this forum as we cannot give you 'advice' without knowing your full situation, or the FCA will lock me up, fine me a squillion pounds and take my kids hostage.