Inherited mortgage shared with sibling

MoonShade

Hi all. My mom passed away a few months ago. The mortgage hasn't been fully paid off. Myself and my three other siblings inherited the house. Two want to take their share and leave the home. But myself and my other sibling thought it would be a good idea to keep it. I live elsewhere (as I was older and live away from home.) My sibling who is staying there wishes to take over the mortgage, but my name will be on there also. So if he doesn't end up paying the mortgage, I'll be liable.

I'm a bit nervous as I don't want my credit to be ruined if he cannot pay the mortgage and the house gets repossessed. I know I won't be able to afford both the mortgage and my own home, so I wouldn't be able to take over payments. He is confidant and has a job, but he is young and reckless and recently his behaviour has concerned me..

I think the best idea is for us to rent out the house (it's a four bedroom home and it seems silly for just one person to live there) but he isn't keen and wants to stay there himself.

I think this is a good oppurtunity, but I just don't know if I'm making a wise decision.

Any advice?

mrginge

Sell it and let him buy his own house.

Edi81

If you know that you can't afford both this house and your own then getting a mortgage is unlikely.

If you don't can't see a way forward the house will need to be sold. The current lender will want their money back now that your mum has passed away.

There are countless examples on here of family relations going bad when money comes into it. Think carefully before doing anything.

getmore4less

You can't inherit a mortgage you will need a new one.

How are you thinking you will share/own the house?

will they be paying rent for your share or can you put a lodger in to pay for it

You need enough for the mortgage and to buy out the others.

MoonShade

He pays for it as he lives there. I would like to rent it personally but he doesn't want to.

getmore4less

Why are you even considering being part of this?

Jenniefour

OP, both ideas you're considering are simply not possible, you cannot just take over the mortgage. And you cannot ride roughshod over the wishes of the other two siblings who want to leave and receive their money - to which they are fully entitled. The house needs to be sold so everyone gets their proper share of the inheritance.

Has the mortgage lender been informed of your mother's death? If not, that needs to be done. They will allow time for the house to be sold and, meantime, no-one should be making any further mortgage payments. What remains will be paid off with the sale proceeds.

Edi81

As Jennie says. The lender needs to be informed of your mother dying.

You have not inherited a mortgage. You have inherited a quarter share in a house that is encumbered by a mortgage. These are separate things. I would sugggest that you seek legal advice on this as you do not have agreement with your siblings on what should happen to the house.

What about the rest of the estate? Any savings, shares etc? Is there a will?

worried_jim

Get it sold. Get the estate divided into four (if that was your Mum's will) and move on. Keep it simple and business like and do it quickly. Your younger sibling's scheme is a none starter unless they can obtain their own mortgage for the full retail value and then buy the two thirds out- which they can't and you absolutely should not do as this will end in tears when they stop paying you the full market rent and you have mortgage areas and your credit is trashed and you lose your house and your family argues and splits for 50 years. This site is full of these stories. Sadly.

MoonShade

Jennie etc: The bank have been informed and we can take over the mortgage. My other two siblings are still taking their share. Just myself and my brother are taking over the home.

Edi81

Okay. So the bank have said that you and one brother can have a new mortgage in your names.
What's the problem? The fact you and this brother can't agree on renting it out or him staying.

Sounds as though you have doubts. If this sours it could go awfully wrong.