Remortgaging a house I dont live in?

aps276

Hi, Im new so please be gentle!

I live with my partner in a property she owns.

I recently inherited my fathers house, he owned this himself but my mum lives in it as she returned to care for him when he became ill (they separated a number of years ago and shared the proceeds from the marital home when it was sold).

How easier would it be for me to remortgage this property for roughly £30K (worth over £100K) to allow me to sort my own personal finances out? Mum is agreeable to this by the way!

Thanks

AnotherJoe

aps276 wrote: »

How easier would it be for me to remortgage this property for roughly £30K (worth over £100K) to allow me to sort my own personal finances out? Mum is agreeable to this by the way!

Thanks

Its not impossible, as long as (obviously) you have the income to support this mortgage. Two potential issues might be, its a very small mortgage, so not all lenders like that, and why is the money needed? Lenders dont like lending to clear debts which is the sort of impression I get from your post.

Now, if you were remortgaging to do home improvements and a small extension, lets say you put that on the forms, they would likely have no issue with that.

If you do go this way, you really do need to sort out your finances to understand why you are in this position. Otherwise you may be just at the start of digging yourself a big hole you cant get out of, and its your mums accommodation you are talking about. Speaking of which, is your mum living in the house on some sort of trust, or is it informal? If the former, that may possibly raise issues getting a mortgage. Also does your mother own some of the house or are you the sole owner?

So, unless there is a very clear one-off non-repeatable issue why you need this money, I suggest you also head over to the debt free wannabee forum here where you can get help so as to ensure you arent digging that hole I mentioned.

aps276

I'm guessing its just an informal agreement for Mum to live there, it was stated in his will about it but no other legal contract in place??


I am the sole owner as my late father bought this property while they were separated from his share from the sale of the marital home.


You are correct in saying it is to clear debt, If I was to borrow a higher amount would this be more favourable to lenders? Also if I said it was for home improvements would the lender not want to see proof this work was completed?


Thanks

AnotherJoe

aps276 wrote: »

I'm guessing its just an informal agreement for Mum to live there, it was stated in his will about it but no other legal contract in place??

I am the sole owner as my late father bought this property while they were separated from his share from the sale of the marital home.

You are correct in saying it is to clear debt, If I was to borrow a higher amount would this be more favourable to lenders? Also if I said it was for home improvements would the lender not want to see proof this work was completed?

Thanks

Not all do, no. Odds are, from what I've read here, if you say its for clearing debt, you simply wont get one, end of, but perhaps someone more experienced can state if there are exceptions.

I suspect there are two reasons for this, one is, its not really what they do, they lend for houses, not to clear (being facetious) the debt on your last two holidays and a new car.

Second issue is the "digging yourself a hole" problem. Unless you address the root cause, you'll be back in 3 years time asking for another £30k, and then in another 3, complaining how the evil mortgage co is throwing your mother out on the streets as you cant afford the repayments. They dont want to be going there. Your existing loans may also be an issue, i should have thought of that though you didn't mention them up front it was reasonably obvious.

Talking of which, you'll probably need a broker to help you, since with a dependent living in the house (unless you lie about it) and it not being your principal residence (unless you lie about that) you'll need to get a BTL mortgage (higher rate) and a lender thats happy with this. Not all will be.

tlc678910

Hi,

EDIT: I see it was stated in your fathers will for your mother to live in the house. As such it was your fathers wish and the below does not apply!

extremely sensitive topic but I'm wondering how you feel about your mum remaining in the property if your finances are stretched?

If your mum didn't live there I'm guessing you would rent it out or sell up? Does mum have an income to pay any rent or at least to pay the small mortgage if you are able to get one?

I bet I'll sound so callous but your mum and dad had separated and divided their assets. If your mum had passed away and left you an asset would she be happy for your dad to remain in it indefinitely while your finances took the strain?

But I can see saying anything is an absolute minefield!
Good luck with sorting it out

AnotherJoe

tlc678910 wrote: »

I bet I'll sound so callous but your mum and dad had separated and divided their assets. If your mum had passed away and left you an asset would she be happy for your dad to remain in it indefinitely while your finances took the strain?

Probably, if the will said something like "I wish for my ex husband to stay in the house" which it appears is what the father did. However, if it was stronger than that , eg if the will actually says "you get the house on condition that wife can remain in house" then that's a different ball game and will give most lenders kittens.