Inherited equity

tiedequity

When my mother passed away two years ago, I inherited one third of her half of my parents house.

My father is still alive but living in a care home and the property is rented out to pay his care fees.

Is there anyway that I would be able to use my share of the property (approx 55,000) to secure a mortgage?

The more I think about it, the more unlikely it seems it would be possible but thought I'd throw the question out there and see if anyone has any thoughts.

My wife and I are currently renting and would like to get on the property ladder.

AdrianC

The most sensible option would be to sell your share of the rental property to one or both of the other joint owners.

If you retain partial ownership of this property, then you'll be paying the extra 3% SDLT on your purchase.

PasturesNew

Absolutely not. You can't do a thing with your 1/6th except sell it to one of the other two owners.

paddedjohn

Are you getting 1/6 th of the rent? Could that be used as income for mortgage purposes?

ognum

You do realise you are already a property owner so will have to pay the extra 3% stamp duty when you buy don't you?

G_M

and don't forget Capital Gains Tax when you sell.............

ScorpiondeRooftrouser

ognum wrote: »

You do realise you are already a property owner so will have to pay the extra 3% stamp duty when you buy don't you?

I would imagine he does on account of AdrianC having told him 3 hours ago.

ChemistDude

Sell your share. Use as a deposit for the new house.

konark

Yes your sixth of a house is a bit of a liabilty, CGT and insurance liability and you'll be barred from means-tested benefits.

Generally mortgage lenders lend on the basis of earned income only, not on any capital you possess.

xylophone

I suppose the OP could try to raise a mortgage for 5/6 of the equity, buy out father and his siblings (?) and live in the house as his PPR?

This would mean that father would have his 50% share of the sale proceeds to finance his fees but of course the siblings (?) would not inherit father's share of the house (assuming that he meant to leave it to them in his will).

ognum

ScorpiondeRooftrouser wrote: »

I would imagine he does on account of AdrianC having told him 3 hours ago.

I see that now and admit I didn't before so my error but do you need to write in such a rude fashion.

Many people repeat what has been said by someone else and all you are doing is trying to make yourself look clever.

You haven't!