Mortgage advice

snapper4

My aunt has inherited a family home worth £150,000.

The house has a tennant in it.

She wants to sell this house to her son so that he can keep renting it out as neither of them wish to sell the house and she would like some money to enable her to enjoy her retirement.

He is finding it difficult to get a mortgage because his mother hasn't owned the house for 6 months and he is a first time buyer.

Does anyone know of any mortgage lenders who would lend to him?

amnblog

Why can't they wait a few months?

snapper4

His Mum wants to get everything settled asap because she's had to pay off a charge on the home so wants the money back quickly.

dimbo61

" The house has a tennant in it."
Tenant will have to be given S21 notice IF the have a Normal tenancy?
It may take months to get tenant out

Thrugelmir

snapper4 wrote: »

He is finding it difficult to get a mortgage because his mother hasn't owned the house for 6 months and he is a first time buyer.

Not owning a residential property himself will limit the number of lenders who would consider a BTL mortgage.

Armorica

dimbo61 wrote: »

" The house has a tennant in it."
Tenant will have to be given S21 notice IF the have a Normal tenancy?
It may take months to get tenant out

They don't say they want the tenant out? (The OP implies that the landlord will change, but not the tenant)

I assume there is an element of capital gains tax sorting out too

getmore4less

If this was the plan, why was it not sold from the estate to the son?

kingstreet

getmore4less wrote: »

If this was the plan, why was it not sold from the estate to the son?

That was going to be my question.

We're just doing a similar job. Brother and sister to inherit. She is purchasing property from estate and mortgage funds will go into estate to pay brother in cash instead.

amnblog

Comes up time and again with these inherited properties.


Initially goes into the wrong hands and them further transactions to resolve it.


If you are inheriting a property people and want to buy another beneficiary out - get some advice from a broker early.

Foxy-Stoat_3

snapper4 wrote: »

His Mum wants to get everything settled asap because she's had to pay off a charge on the home so wants the money back quickly.

Best thing to do is issue S21, put it on the market and sell it.

Wanting not to sell it as her Son wants to continue renting wont happen unless the Son as a residential mortgage already (which he hasn't) and I'll bet my last £1 that he doesn't have £37,500 in cash for the deposit plus a few thousand for fees.....oh wait, the OP will probably say that the Mother is going to sell it for 25% less so that will be the deposit the lenders want.

NEXT !!