Parents need to raise ~£100k in less than a fortnight

Maddie

My Mum has bought some property at auction to add to her deceased mothers estate. It will be bought along with my Uncle.

Being my mum nothing has been done in terms of raising the cash for payment and it is due by 13th August.

Can anybody recommend the best way to raise the money and the timescales involved? They have a lot of property on which a mortgage could be secured but I don't know if there's time for this. Also my mum is self employed and supplying accounts could be a problem.

I wondered if it might be best to a few unsecured loans, ie my mum, dad and uncle could each get a large loan, as this might be simpler to arrange and quicker.

Out of interest, what would happen if they didn't meet the payment date, would the deposit for the lot be lost?

Thanks,

Maddie

jamesd

Seller keeps the property and deposit and is then free to sell it to someone else. Family members with a financial interest might then complain about mishandling of the estate and seek redress from your mother for the money she lost by not administering it properly.

Have a word with the seller and see what daily penalty fees they want if payment is delayed. Chances are that they will be fairly reasonable - say 1/30th of the deposit value per day - since they probably wouldn't have auctioned the property if it was an easy sale.

Talk with a broker. Some lenders can move rapidly. Local brokers may also know of local short term lenders. Talk with the estate's bank, which might be willing to provide bridging finance to allow more time to get something else in place.

HelpWhereIcan

Maddie wrote: »

Can anybody recommend the best way to raise the money and the timescales involved? They have a lot of property on which a mortgage could be secured but I don't know if there's time for this.

There are a number of ways to do this. The quickest is normally to arrange bridging finance secured on the auction property (and possibly one of her other properties), but it may well be possible to remortgage one of her current properties or get a further advance on one of her other properties in time.

Maddie wrote: »

Also my mum is self employed and supplying accounts could be a problem.

What does she want the property for - not sure what the benefit of adding it to a deceased person's estate is (would be interesting to know).

If a buy to let, this should not cause a problem as most lenders are more concerned about the rental income the property could generate than your mum's personal income.

Maddie wrote: »

I wondered if it might be best to a few unsecured loans, ie my mum, dad and uncle could each get a large loan, as this might be simpler to arrange and quicker.

Could be as quick as and almost certainly cheaper than bridging finance so could be a good option as long as they can borrow enough.

Maddie wrote: »

Out of interest, what would happen if they didn't meet the payment date, would the deposit for the lot be lost?

Yes, but...... depending on the vendor they may be given more time to complete. But officially, the deposit is forfeit.

MortgageMamma

there are a couple of mortgage lenders who may be able to complete within say five days - there is such a thing as point of sale offers (that means the offer is issued electronically online as your mortgage application is submitted) these lenders then do an automated valuation assessment (i.e. an online valuation) and as long as it all stacks up and search indemnity insurance is purchase the money can be released very quickly

The drawback is that you might not get the most competitive product on the market, but these sort of completions are becoming more and more common place. I have never actually done one myself but it might be a good idea to seek out a mortgage broker who is experienced with these lenders/products

Maddie

HelpWhereIcan wrote: »

What does she want the property for - not sure what the benefit of adding it to a deceased person's estate is (would be interesting to know).

Sorry, I didn't explain it very well.

Included in my grandmother's estate is a number of garages in a residential area. My mum has just bought some further adjoining garages which therefore complete the land. Because of this they are more valuable to my family than to anyone else, so my mum rushed off an bought them without telling anyone but has not got round to getting a mortgage.

I've not really been asked to help (yet) but no doubt I will be so thought I'd better do some research. I got my dad to ring L&C who are ringing back soom so hopefully that will help.

Thanks everyone

MortgageMamma

so you want to mortgage garages?! I cant think of a residential lender who would mortgage a bunch of garages without the adjoining properties if there are some so you would be better remortgaging an existing property I would think. Happy to be corrected if I am wrong as this is not something I have come across before.

Maddie

If they get a mortgage it will be secured on other property

dunstonh

The estate wont own these garages though. Your mother/uncle will.

In the will, are the garages listed as an asset to leave to someone? Or is the execuctor putting them up for same to liquidate them?

Maddie

My Grandma passed away many years ago and the estate was passed onto my Mum, her brother and sister.

rjm2k1

Presumably your mum wants to sell the combined land for development? Are there any restrictions on the use of the land? One way of arranging finance might be through their existing properties, ie if they have a reserve account on their mortgage, or if no mortgage then setting one up on their existing residential property to pay for the garages.

dunstonh

Maddie wrote: »

My Grandma passed away many years ago and the estate was passed onto my Mum, her brother and sister.

So, the estate has been settled?