Mortgage to buy out beneficiaries

kittycatsam

Hi, Please could someone give me some advice?

I am Executor and one of four beneficiaries of an estate with several properties.

One beneficiary wishes to keep one of the properties but it is worth more than their share of the estate. It is a buy to let with flats worth £130k, beneficiary wants to borrow about £40k to pay back others and have some money to do work on the place. There is no deposit, other than the equity from their inherited share.

Rental income is about £16k per annum and this beneficiary s self employed - been so for less than a year so no accounts.

We've approached a broker to enquire about buy to let mortgages and he seemed to think it was possibly the most complicated scenario in the world and had no idea how to approach the situation! Is it really that complicated? are we not using the right terms?

Any advice would be welcomed as we also have another interested buyer and want to know whether a BTL mortgage is possible for the beneficiary, otherwise we'll go with the other buyer.

kingstreet

The process of the beneficiary purchasing the property from the estate and using a mortgage to raise the funds to pay out other beneficiaries is pretty straightforward.

We did one recently on a BTL basis.

However, combining that with the applicant being less than one year self-employed may be problematic.

This will need a good experienced broker. Not the one you've spoken to so far, by the sound of it.