What extras when buying out house im inheriting.

Legacy_user

So I have posted before asking for advice and was always good.

Basically my mother died with a mortgage. I'm the sole benificary but for me to inherit the house I have to pay out the mortgage.

I am getting a loan along with savings to pay this and I am at my absolute limit to pay it. I work abroad so taking over the mortgage as a no go.

My question is what more would I have to pay after paying the mortgage out?

Solicitors fees? Land registry? The rates are covered but is there anything else. I have to pay 44k and I literally will have that and not a penny more after scraping every avenue. Part of me thinks I'm mad instead of just selling it but it's a good house and if things become difficult repaying I can always sell anyway.

p00hsticks

frannyj543 wrote: »

My question is what more would I have to pay after paying the mortgage out?

Sorry for your loss.

What are you planning to do with the property ?
You will have ongoing costs such as council tax, gas & electricity, water, buildings (and contents? ) insurance.

If you intend to let it out you need to decide if you're going to let it furnished - in which case you may need to purchase some additional furniture as required - or unfurnished - in which case you may need to pay for house clearance and /or storage. And ther are various legalities you will need to meet (depending on the property type and location) such as gas checks, smoke alarms etc.

Tom99

[FONT=Verdana, sans-serif]You are not going to live it the house, you will have absolutely no capital left and you are abroad – I would sell the house.[/FONT]

Jenniefour

OP, it's not just the immediate fees you need to pay, which are probably quite low. It's the possible ongoing costs. I assume you would rent out the property since you don't want to be paying at least hundreds every year for an empty house. Do you have enough money set aside to cover any ongoing repairs/replacements? Or to withstand a couple of months of rent arrears? Worst case scenario is tenants don't pay rent and it takes about six months to evict.

Have a very careful think about whether it's in your longer term interests to keep the property rather than sell - simply because you're stretching yourself to the limit financially to redeem the mortgage. Not the best position to be in, and something may come up unrelated to the house where you need to find a couple of grand quickly. Remember that a property is not a liquid asset - unlike shares which can be sold in minutes.

I do understand that you probably have an attachment to your mother's home, and/or you may plan to live there yourself at some point in the future. But the above sounds a bit too tight to me. However, you can probably do what needs to be done to redeem the mortgage and put the house in your name yourself - or the executor, if it's someone else (hopefully not a solicitor for an estate of that amount!).

G_M

frannyj543 wrote: »

.... my mother died with a mortgage. I'm the sole benificary but for me to inherit the house I have to pay out the mortgage.
Are you also the Executer? If not, who is?

I am getting a loan along with savings to pay this and I am at my absolute limit to pay it. I work abroad so taking over the mortgage as a no go.
How will you maintain the property then? Insurance, council tax, repairs, utilities......

Or do you plan to let it? Have you been a landlord before? Do you know what's involved? Are you a UK tax-payer?

My question is what more would I have to pay after paying the mortgage out?

Solicitors fees? Land registry?
Depends who the Executers are. If solicitors, they will need paying. Usually they wouldpay themselves out of the estate, but it appears the estate has no/minimal assets except the house, which is not being sold. So you'll have to pay them.

If you plan to keep the property, it will need transferring into your name, so yes, Land Registry.

You could do the LR transfer yourself as there will be no mortgage, though ID verification will be hard from abroad..... check with the LR if they accept foreign lawyers' ID checks.


The rates are covered but is there anything else. I have to pay 44k and I literally will have that and not a penny more after scraping every avenue. Part of me thinks I'm mad instead of just selling it but it's a good house and if things become difficult repaying I can always sell anyway.

I imagine you plan to let the property (otherwise how can you maintain it with no money). So read:

* New landlords: advice, information & links

* Letting agents: how should a landlord select or sack?


Personally I think you should sell (or ask the Executers to sell).

trailingspouse

Did your mother not have life insurance? I thought it was normal practice for mortgage companies to insist that you carry insurance which would pay off the mortgage in the event of the mortgagee dying before the end of the mortgage term?

Mutton_Geoff

G_M wrote: »

Executer

I'm sure you mean executor rather than a person that dealt out capital punishment ;-)

System

Thanks for the replies.

The facts are below.

-The house is values at 110k.
-There is 45k left to pay.
-My mother had no life insurance as the premium went up so high after heart problems.
-I work and live abroad so i cannot get a mortgage in the UK.
-I havent been abroad long enough to get substantial so I have a loan that i can have approved of 20k.
- a relative is executor.
-the estate has near been finished and solicitor has sent through account statement.
-somehow the solicitor has said that we should leave the estate with my covering the mortgage until I decide what to do with the house (short term) or until the bank actually write to the executor asking for a decision with the house. ( don't get too caught up in this point as I've been thru it on another forum. Neither I or others can't understand this but it is what it is for now and the bank haven't asked a single questions regarding mortgage yet. I assume cause they are being paid. I wanted to pay mortgage to bide me time to decide and it seems to have worked).

So I'm basically long story short when my mother's money is released and with my savings along with the 20k I basically have the total amount.

Rates have been paid for 1 year as I be back and forth from property but I would rent it out if I paid mortgage. Maintaining property wouldn't be a problem I have a salary abroad circa 25k a year which can sometimes be abit more.

Heads wrecked over it all. The fact that solicitor hasn't advised me to sell and the bank haven't pushed for a decision in 9 months is strange but I suppose they have to chase others who haven't/aren't paying.

Just don't know what to do with it. I have the means to repay loan it's just for the next 3 months after paying it things will be so tight.

Sorry for the rambling but hopefully this clears more up.

gettingtheresometime

Excuse me asking but have you posted about this before?

The scenario is a copy of another poster's question

System

I have posted something similar regarding the solicitor issue and that.

I thought I would have no chance securing a loan from my overseas bank but I have had a 20k offer in principle based on my business here.

I just wanted people's opinions as before i only could sell, whereas now there may be another option

G_M

Mutton_Geoff wrote: »

I'm sure you mean executor rather than a person that dealt out capital punishment ;-)

You'd think I'd learn...... but no.

I've been caught by that spellow before!