First time buyer - buying out inherited property advice please

Bfowler91

Hi looking for advice on purchasing half of a property.

My mother has inherited half a property and myself and my husband want to purchase the other half £270,000 from her two brothers. We had three estate agents come round and value it and agreed price of £540,000 £5,000 off market value.

My questions are;

Can we have my mother named on the mortgage and use her equity of £270,000 as a deposit.

The property had a loft conversion which isn't fully signed off; needs some fire doors etc, would this impact obtaining mortgage if we were going to live here anyway and already own half?

Thank you

Becky

Bfowler91

The property she owns half of is where she lives at the moment. We all live here. Her parents died in 2014 so probate etc has all been in place for a while.
We want to buy the other two out and in the future renovate it into two dwellings.

We assumed if all three of us were on the mortgage we could use the equity as a deposit for the remaining half. No she wouldn't be able to afford it alone but surely that doesn't matter if 3 people are liable with a combined income of approx £85K ? Affordability wise..

We could raise the £270K just two of us but we can't mortgage half a house! Confusing!

We spoke to a broker a while ago who said it's possible if all named, unsure about the deposit however.

Thanks

TBagpuss

She wouldn't have to be able to afford it alone, but they will take into account her age - normally the term of the mortgage must be one which ends by the time the oldest person on the mortgage turns 65 (or 70 if the lender does mortgages to that age).

But your broker will be able to advise you.

You should also ensure that you have a formal declaration of trust to make clear not only what percentages you own and also to provide formal arrangements about how things will work if any one of you decides you want to sell up.

In terms of the building regs I am not sure - I think you may find that the lenders insist on a retention util the work is done, or alternatively that they value it lower on the basis that the work isn't complete. They won't care about the fact you're already living there, they will care about how good their security is - so the fact that you will only be looking to borrow 50% of the value will be relevant.