Can we move into deceased in-laws home?

jackomdj

NewbieLou wrote: »

Exactly! He had a bloody good time, cruises and flashy cars. He was only 53, his wife died unexpectedly in her sleep (my OH's mother) so good for him enjoying the time he had left x

Newbie you may want to reread what you posted, what I quoted above. As I read it that you were disappointed that he had spent it on himself rather than paying off the mortgage.

I see you have added to your post 14, when I typed this it just had the first bit. Your comment makes a bit more sense now.

G_M

I'm struggling to understand the question. Maybe I'm missing something.

Can we move into deceased in-laws home?

Since probate has been granted and your OH is the beneficiary, of course you can.

NewbieLou wrote: »

......Mortgage wasn't fully paid when the in laws passed away, there is 20k left in it (house is valued at 125k).

........

So really my question is, how do we go about buying the house? Do we need to get a full mortgage to cover the 125k? Or do we need a mortgage to cover the remaining balance on the house?

You do not need to 'buy' the house - your OH has inherited it.

Of course, when winding up the inlaws' Estate, he (as Executer) will need to pay off all the Estate debts. One of those debts is the outstanding mortgage of £20K.

There are 3 ways to pay this off:

1) from other Estate assets eg inlaws' savings /investments
2) by selling the property (which you've strugged with by asking too much)
3) by 'lending' the Estate the money on the basis that you will get it back via the inheritance

Note that I'm assuming here that your OH is the SOLE Beneficiary (he does not have to split the assets with, for example, a brother or sister).
I'm also assuming you've dealt with Inheritance Tax (if any) - though since Probate has been granted that's 90% a given.

* If you have £20K in your back pockets, you could pay off the mortgage, then transfer the property into your names (since OH inherits) and bob's your uncle

* if you don't have £20K floating around, you combine in a single process:
a) applying for a £20K mortgage in your own name(s) against the property
b) paying off the existing mortgage (with the £20K you borrow)
c) transfering the property into your name(s)

NewbieLou_2

Maybe I should have phrased the question "How do we financially move into the house" Sorry for not being clear.

The initial plan was to sell the house, clear the debts and use what was left as a deposit. We have reduced the asking price twice now and we have accepted two offers, first was 123k, second was 121k (I think). Both buyers pulled out soon after making an offer.

OH is sole beneficiary and I'm not sure about inheritance tax, will look into it. We don't have 20k (unfortunately!) but we do have some savings. So theoretically we could apply for a small mortgage, settle the estate, and then transfer the house over to us? Then live a few years there and do it up. For some reason I thought it was more complicated!

Thanks for the advice G_M X

G_M

NewbieLou wrote: »

.... So theoretically we could apply for a small mortgage, settle the estate, and then transfer the house over to us? Then live a few years there and do it up. For some reason I thought it was more complicated!

Thanks for the advice G_M X

Yes - assuming you qualify for a mortgage:
* decent credit history
* suitable income etc

but as you only need a small mortgage £20K that shoud be OK (though I'm not sure there isn't a minimum amount for a mortgage - anyone know? ). Anyway, google "mortgage calculator" and you'll find lots of online tools to see if you are generally OK to get one.

Then see an independant mortgage adviser. He'll advise a suitable lender.

You'll need a solicitor (because of the mortgage - otherwise you could DIY the property transfer) and he will sort out steps 1, 2, 3 in my last post so it all comes together.

A 20K mortgage on a £100K property should not be an issue for you.

ViolaLass

Prothet_of_Doom wrote: »

Over 25 years that would cost you £95 a month
or if you paid £600 a month JUST 2 years !!!!!

600 x 24 = 14400. Not sure how that pays a £20k mortgage off in full.

dimbo61

You and your OH need to borrow enough to not only clear the mortgage but also pay to renovate the property.
Do not underestimate the costs of a full rewire, New bathroom, New kitchen, replaster etc
I would look at an offset mortgage and borrow £50,000/60,000.
Keep all the spare money in the offset account until needed to pay for the work in stages.
Would the property be easy to extend ? Do you need the extra room/s ?
This MAY add value and give you more living / sleeping space

moneyistooshorttomention

I've got this idea in my head from somewhere that minimum that will normally be lent for a mortgage is £25,000?

Having said that - I definitely read somewhere quite recently that there are at least two places that will lend less than this and I believe one of them was quoted as being prepared to lend as little as £10,000 for a mortgage.

However, I don't see that that question needs to come up anyway. As I see it, it makes sense to borrow more than the £20k needed to pay off the mortgage anyway - due to all the work needing doing.

Personally, I'd probably be borrowing £40,000 - £20k to repay the mortgage and £20k to at least be able to make a good start on renovating the house. £20k would cover rewiring/sorting out the central heating/any everyday type "maintenance" work and redecorating throughout and further work could be done later. I imagine the kitchen and bathroom at least "function".

It's a shame the house couldn't be sold as is - but, meanwhile all this money is being wasted that is going out each month on rent. So it makes sense to move in asap (ie as soon as that mortgage has been taken out).

p00hsticks

moneyistooshorttomention wrote: »

I've got this idea in my head from somewhere that minimum that will normally be lent for a mortgage is £25,000?

I had the same thought.... but you may be able to get an unsecured loan for £20k

NewbieLou_2

dimbo61 wrote: »

You and your OH need to borrow enough to not only clear the mortgage but also pay to renovate the property.
Do not underestimate the costs of a full rewire, New bathroom, New kitchen, replaster etc
I would look at an offset mortgage and borrow £50,000/60,000.
Keep all the spare money in the offset account until needed to pay for the work in stages.
Would the property be easy to extend ? Do you need the extra room/s ?
This MAY add value and give you more living / sleeping space

We have said that we will borrow 40kish cover the mortgage and do renovations. This figure is just an estimate right now, we need to work out what needs doing.

The bathroom is brand new and done to a high standard, the kitchen the same so those two rooms don't need to be touched apart from freshening up with a lick of paint. A new boiler was put in when the kitchen was done but some radiators need to be replaced. All new windows as well. I don't think we will extend, the house was originally a two bedroom detached and a large extension was already built in if to make another bedroom and a new dining room downstairs.

Thanks for the advice x

moneyistooshorttomention

True - and I see your point (edited - ie to deleted post re nice houses across the road that are ready to move into).

But it is what it is and meanwhile you are losing hundreds of £s a month in rent.

So - grit teeth at the house not being what you want and be glad of the chance to get a house (if not your ideal) in your hands. Move in, get it to a reasonable standard and then sell it on in a few years and buy what you really want.

You never know - you might actually come to like the house once its more in your style.