Buying half a house from friends sibling after death of their mother

Lstepney1

Hi all.

My good friends mother died last year and left the property to him and his sister 50:50. He still lives there and she now wishes to sell the property. She has given him until September when she wishes to put it on the market of which she states is all legal and above board. The house is roughly worth £330k and is in a good location. Would it be possible for me to mortgage her half and take joint ownership with him?

Thanks.

Kynthia

If she's willing to sell her half to you then it's possible. However the brother would need to agree and it's likely he'll need to be on the mortgage too as lenders don't usually allow owners to be on the deeds and not on the mortgage. So that means your mortgage will be affected by his credit worthiness and he'll be liable if you don't pay. Plus you should get a Trust deed to spell out the 50:50 ownership what happens when you sell as he should be entitled to half the sale price and you entitled to half less the outstanding mortgage.

xylophone

Will this be a second property for you? Or you have no existing property but want to move in with your friend as co-owner?

Is there any reason why the friend should not obtain a mortgage and buy out his sister?

Or do you intend to sell an existing property and move in with the friend?

Or your friend will occupy the house alone but you will own it as tenants-in common?

You might be well advised to discuss the situation with a mortgage broker.

Lstepney1

Thanks for the replies.

Will this be a second property for you? Or you have no existing property but want to move in with your friend as co-owner?

I own no other properties and this would be the first. I would like to be a co owner yes.

Is there any reason why the friend should not obtain a mortgage and buy out his sister?

My friend has little in the way of deposit and is only working part time at the moment. Will this be an issue?

Or do you intend to sell an existing property and move in with the friend?

No

Or your friend will occupy the house alone but you will own it as tenants-in common?

We will both live in the property as co-owners. The plan is to renovate and then sell down the line.

Thanks.

xylophone

You and the friend approach a mortgage broker about obtaining a joint mortgage to buy out the sister?

Mojisola

Lstepney1 wrote: »

She has given him until September when she wishes to put it on the market of which she states is all legal and above board.

She won't be able to sell the house without his agreement but it's only fair that she should be able to get hold of her inheritance. Is he paying her any rent while he is living there?

She could take him to court to force the issue but that will take time and money.

As he wants to stay there and you are happy to buy into the place, get advice about a mortgage.

Also, look into a written agreement about who pays what, what happens if one of you wants to have a partner move in, agree terms for selling the house, etc.

G_M

I assume Probate has been granted, Inheritance Tax paid (if applicable) and the Estate wound up. Yes?

Is the property now registeted in their joint names, or still in mum's name?

He should really be paying her rent as he is living in a property she half owns.... In the short term not a problem, but if it drags on it's really unfair on her if she gets neither a property to live in, or sell, or rent!

Yes, she could force a sale via the courts, but that's expensive and just plain stupid. They should agree what to do with the property amicably.

Either he should

* agree to sell the property and split the proceeds 50/50, or
* he should buy her half himself (which you say he cannot afford to do), or
* you and he should see an independant mortgage broker and apply for a joint mortgage, and you should use that money to pay the sister for her half.

You must think hard about every possible future scenario, over the next 25 years, and agree what you'd both do eg

* you get married - will your spouse move in and all 3 live together happily? Or would you want to sell your half and buy somewhere with your new spouse? If so, would he buy your half or agree o sell the property....?

* he gets married: same question

* you fall out and hate living together. What happens?

* you (or he) get a job abroad or in another city. What happens?

* etc

ViolaLass

Lstepney1 wrote: »

Is there any reason why the friend should not obtain a mortgage and buy out his sister?

My friend has little in the way of deposit and is only working part time at the moment. Will this be an issue?

He does have a deposit - he owns half the house.