inherited property with mortgage

TBagpuss

In terms of the forms etc, technically, you-as-executor are selling to you-and-your-husband-as-individuals. It may be that things like the fixtures and fittings forms are not necessary and has simply been sent to you as it is part of the routine. Check with your solicitor whether they need these to be completed.

It is standard to ask who is living in the property as this matters to the mortgage lender - they need to ensure that there is no-one in the house who might have rights to stay there even of the lender repossessed.

In terms f how the money works, normally what happens is that your lender will send the money to your solicitor, who will then send it to your dad's mortgage lender. (if you are using a different solicitor for the conveyancing and the probate, then your conveyancing solicitor will send it to the probate solicitor, and they will send it to your dad's lender.)

Your dad's lender will then release their change over the house (i.e.take the mortgage off the house) and your new lender will put their mortgage on the house.

All those things happen on the same day, and its all held together by solicitors giving formal undertakings.

shortcrust

lampshade83 wrote: »

Thank you both yes that's all correct, everything is settled and paid including some minor debts with utilities etc it's literally just the outstanding mortgage remaining. We applied for a new mortgage ourselves and were offered it Monday. Neither of us have had a mortgage or owned a house before.

Unfortunately he did not have life insurance, I was really shocked to be honest that had a mortgage without one as I thought it was a requirement but we found nothing in all his paperwork and Santander who the mortgage was with said he had taken no protection out

I'm single with no dependents and didn't get life insurance with my mortgage. There'll be no silver linings for friends and family in the event of my tragic early death.:)

ThePants999

Process is basically:
1. Your new mortgage lender pays £68K to your solicitor
2. You pay £3K to your solicitor
3. Your solicitor pays £71K to the old mortgage lender

getmore4less

4. you pay the solicitors bill....

thelem

lampshade83 wrote: »

We have around 8k in savings and can borrow more if needs be for stamp duty etc from my husband's mum. Affordability wise we earn around 34k combined and were told we could have borrowed more based on our income and outgoings if we had better credit histories.

We've lived here for around 10 years so we're quite familiar with the upkeep etc. my dad was living off his pension so we have always maintained the property since living here, paid him rent which was over double what our mortgage payments will be, paid towards bills etc. We have had the house replastered and decorated, replaced the boiler around 2 years ago etc. It's not that big a house, we're just in an expensive area!

That sounds like you're in a pretty good position financially then. Do look into the inheritance tax issue though. From what you've said it sounds like his threshold would be £425,000, which would leave a bill of a little over £40k. You'll probably be able to avoid this bill if he was widowed. See https://www.gov.uk/inheritance-tax

PS Well done for keeping a level head while dealing with this. While the cause of having to make these decisions is heart breaking, it's good that you're able to separate those emotions from the important financial decisions that you are having to make.

davidmcn

thelem wrote: »

Do look into the inheritance tax issue though.

They already have, otherwise they wouldn't have Probate.