Releasing equity from a house in probate

Deant123_2

Hey guys.

3 years ago my grandfather died and left me his mortgage free home. I estimate the house is worth about 90K based on the average house price in the area being about 110-115k and this home if fairly run down and in need of modernisation.

I applied for and was granted probate my self and have since been living in the property.

I am yet to have the deeds transfered to my name as I had/have to intention of selling the home and can not afford to pay the solociter fees.

Which brings me to now. I work part time (earning about 10 grand a year) and have been silly enough to build up a significant credit card debt (about 15 grand).

A friend advised that I should get a 20-30k mortage on the house to clear my credit card debt and have some much needed work done.

I always assumed that due to my low income this would be a no go.

But he is sure that as its a "low" amount I would be fine. That my monthly payments would actually be less than I'm paying now (about 300pm).

Any general advice from you guys would be great.

Cheers

Dean.

deant123

Sorry.

By advice, I mean do you think I could release said equity? Would I first need to pay to have name on deeds changed?

kingstreet

You may be able to remortgage the unencumbered property. The amount you can borrow will be subject to lender affordability.

However, you will have to change the property title to your ownership first and many lenders then won't lend to you until you've "owned" the property for six months.

getmore4less

It is very cheap to change the name on the property if it is registered.

you do not need solicitors to do it.

It would make a lot of sense to finalise the estate after 3 years.

Thrugelmir

Deant123 wrote: »

I am yet to have the deeds transfered to my name as I had/have to intention of selling the home and can not afford to pay the solociter fees.

The solicitors will take their fees from the proceeds.

You should finalise winding up the estate.