Inherited property with outstanding mortgage and IVA

Loulu82

I have recently inherited a property I completed the probate process independently and am in receipt of the grant of probate. The property in question was left by my mother I am the only beneficiary in the will.
The mortgage is equity release it has approximately £40,000 my mother also has an IVA and was 35 months into the agreement her total amount owing is £20,000, in regards of settlement of this. I am trying to negotiate an agreement for 12500 with the insolvency practitioner however i am prepared for further requests if needed.
I have applied for a BTL mortgage via a broker ( I am a home owner of 2 years) he identified virgin money as the most appropriate lender. I have asked to borrow 82000 to consolidate some of my own debt so LTV is approx 50% so would cover 145% stress test and more. I have an excellent credit record no missed payments etc or defaults or CCJs.
The mortgage application was made last Friday. The case has gone to the underwriters and they have asked for proof of my mothers equity mortgage and IVA which I have supplied. The broker was going to ring me on Thursday but not heard anything I did follow up with an email. Should I be worried is there anything that would not meet the lenders criteria?
I obtained the land registry title document and it confirms there are three restrictions which are the mortgage company, the insolvency company alongside the free hold agent.
In terms of removing the restriction can my solicitor request the lender remove the restriction within a certain timescale after they receive payment?

My other questions are I would assume I am liable for stamp duty on the amount I wish to borrow as I am already a home owner?
Will the equity in the property act as my deposit?
Is there anything else I need to consider or ask as part of this process.

Thanks so much

getmore4less

You don't "inherit" houses with mortgages.

The estate might be the legal owner but only has a beneficial interest in the equity after the mortgage is paid off(and the IVA if that is secured).

What is inherited is what's left of the equity once all debts are paid.

You have to buy the place off the estate with enough to cover the debts if you want to keep it.

Have you checked the lease to make sure you can rent the place out?

Is this your fisrt venture into BTL?
If this was not part of the estate would you buy it as a BTL investment

Loulu82

Thanks .. Sorry for my terminology! Yes have grasped that i need to buy the percentage of the estate and repay the debt hence the request to the land registry and the restrictions in place. I have had a solicitor look over the lease there is no clause about not being able to sub let providing there is something within the assured short term agreement that the conditions in the overall lease are up held.

kingstreet

Yes, ensure you are purchasing the property from the estate. Don't try and transfer it to your ownership then remortgage it, that will cause lender issues.

There is no SDLT liability in these circumstances and yes, the equity in the property is your "deposit."

Is the property in "readily-lettable" condition? Lenders typically require that for a BTL product.

getmore4less

A lot miss the separate detail because they think they are just one person when they are two, the executor of an estate and a beneficiary.

If you have a solicitor on the job that should be straightforward once you get the money

Loulu82

Thanks so much that is really helpful, I had so much conflicting legal advice! I approached a solicitor last week and he confused me, he said I would be liable for Stamp Duty if you can recommend any solicitors in the Manchester area, who specialise in this area I would really appreciate it.
Thanks again.

AdrianC

Your mother's estate needs to repay her debts. If it can't do so from liquid assets (cash, investments), then it needs to find the money to do that.


Your job as executor is to do that, then pass whatever's left on to the beneficiaries.


If selling the property is the only route to repay the debt, but one of the beneficiaries really wants to keep the property, then they can put money into the estate to cover the debts.


So... do you, as the beneficiary, REALLY want to have a BtL property? Why? Are you sure the numbers work? Is THIS the right property to let out?

Saying to yourself "Well, I think I can make the numbers work, but more importantly it's mum's old house, and I really really want to keep it for sentimental value" is a sure fire way to be an abysmal, controlling, loss-making landlord.