What extras when buying out house im inheriting.

G_M

frannyj543 wrote: »

T
-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.

* YOU cannot do anything with it. It is in the hands of the Executor, not you.

* the Executor should be winding up the Estate. Do you know
a) has any Inheritance Tax been paid (if applicable)? If so, from what? If not, the Executor may need to sell the house to pay the tax

b) has Probate been granted?

c) why has a solicitor been instructed? Money from the Estate down the drain.

d) what other money/assets are in the Estate? You say "rates have been paid" and "when my mother's money is released ", so how much £ is still in the Estate?

e) any advance payment of rates (council tax? Or is this N Ireland) is refundable on sale. And why was advance payment made? Seems premature if
i) the Estate is short of cash
ii) the property might be sold
iii) Once the Estate is wound up, 'rates' would fall to you, not the Estate if the property is not sold

f) the longer this drags on, the higher the mortgage redemption amount will be.

g) so sounds like the Executor is not doing such a good job!

h) banks can be 'understanding' after a death, especially if their repayment are still being met. They know Probate can take time, so why should they 'push for a decision'?

i) Solicitor is right - until you tell the Executor whether you want to
iv) buy out the mortgage lender and have the property transferred to you, or
v) have the property sold by the Executor to pay off the mortgage, and receive the equity in cash
the Executor should ensure the mortgage is kept up to date and he Estate wind-up be delayed

j) you have a simple choice:
vi) pay off the mortgage, ask the Executor to wind up the Estate (transferring the property and any other assets) to you, struggle for 3 months, keep the house and let it (or whatever)
or
vii) tell the Executor you don't want the house - he will sell it, reclaim advance rates, pay mortgage and bills, and then give you the balance

Time you decided. Do you want to be a landlord?

gettingtheresometime

frannyj543 wrote: »

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

I thought I recognised the facts.

Being honest, what do YOU want to do?

As I remember it, it was basically your Aunt - the executor - telling you to keep the house .....& if I remember again correctly, you were being told not to say anything.

I said originally, & I'll say it again, I get the impression you're being emotional blackmailed into keeping the house regardless of whether it's the right thing for you to do

Keep_pedalling

Frankly I think you would be crazy to take this on. As above, inform the executor that you want the house sold and to receive your inheritance from the proceeds.

System

I know personally i can't do anything with it however as I am the sole benificary i am someone who will be making decisions on it. The executor isnt going to sell the house if there's possible I can find another way.

Probate was granted ages ago. Everything has been released to solicitors account and the remaining money from my mother's accounts will be transferred to me in the next few weeks.

The solicitors fees have all been calculated and arranged and we all agree.

So it's a matter of sending me the money.

She has said she needs to hold £500 back. I assume this is to deal with the house situation whether it be sold or I buy out the mortgage.

This would have been simple if it had been managed properly. I guess that's what happens when people don't update their wills when their child becomes old enough to make decisions.

Why would the mortgage redemption be more when I am paying the mortgage every month? I dont know how these things work.

Part of me wants to just get the money pay it, get it into my name then I can manage it myself. Other people have had their say and put me off selling it.

00ec25

Mutton_Geoff wrote: »

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

LOL, sadly GM is convinced that his spelling is correct and has previously provided links to support his (erroneous) belief

AnotherJoe

OP, lets say in a different world, you had £55k saved.

Would you then decide to borrow and scrape to raise enough to buy a £110k house that you dont know what to do with and are thousands of miles away from, and will therefore have to pay someone to manage it, whilst you take on the legal responsibilities of being a landlord, plus the risks, financial and otherwise?

If that's not what you'd have done, I suggest you tell executor to sell the house and send you the £55k.

System

Also the house is relatively new 20 year old.

It is in a good area, neighbours are brilliant, close to all amenities and in my area you can get anything decent for less than 90k.

So I would be selling that house around 105k (values 110k but probably get slightly less) minus fees etc paying the 45k mortgage which would leave me about 60k plus about 20 I will have. That was my original idea sell bank the money save up and maybe in 1 or 2 years be in a better position to buy something. My life is quite complex as I live and work abroad but maybe long term will live at home etc.

Keep_pedalling

I don't understand why you say the executor won't sell if there is possibly another way, the decision is entirely yours.

Do you really want all the complexity of being a landlord especially living in a different county which is going to complicate your tax affairs somewhat.

gettingtheresometime

Can I suggest you have a look at GM's how to be a landlord guide & then decide if you actually want to become a landlord?

Take the emotion out of the decision, ignore any external pressures for you to either pay off the mortgage & rent out or sell & do what's best for you

gettingtheresometime

Keep_pedalling wrote: »

I don't understand why you say the executor won't sell if there is possibly another way, the decision is entirely yours.

Do you really want all the complexity of being a landlord especially living in a different county which is going to complicate your tax affairs somewhat.

If I remember correctly the aunt is the executor ( sister's mum I think) & is putting pressure on the OP to keep the house.

OP is understandably confused as to the best think to do