How much can I borrow?

Leothecat

I’m trying to work out the best way / how much I can borrow.

I work 30 hours per week and earn £21000, take home pay £1500 per month. I have no debts and am currently living in my deceased father’s house paying only rates and bills.

My my sister, brother and I have been through probate and the house is owned by the 3 of us and worth approx £180000.

I have £30000 in savings.

I am a 48 year old single mum and get £100 a month in maintenance (probably only for the next 2 years as dd will turn 18 then).

I’m very fortunate in that my siblings and I are very close and they are financially very stable and are very happy for me to be living in and maintaining our late father’s house. Both say that they do not wish me to move out however I am very aware that no one knows what the future holds and who can say if or when they will need their share of the asset.

I feel that at my age, this is probably my last chance to be able to obtain a mortgage. I’m concerned that when the time comes that they do need to release funds from the asset, it will be too late for me to get a mortgage and although I’ll have a reasonable amount of cash, it won’t be enough to be able to buy a property.

So, my question is, on the basis of those figure, would anyone lend to me? If so, how much?

Thank you for any insight.

ACG

£90,000-100,000 should be possible.
You may be able to get a little more than that but that is probably the ball park.

Leothecat

ACG wrote: »

£90,000-100,000 should be possible.
You may be able to get a little more than that but that is probably the ball park.

Thank you.
And would that be based on my situation as it stands now? I mean without having to sell the asset? I’m asking this in case it takes a while to sell or if my siblings do not wish to sell.

I’ve seen a small house, currently on for £107000 however it is a probate house and I get the feeling they would accept £100k. It needs a new kitchen and redecorated etc and I was thinking if I borrowed say £85000 I would be able to do the improvements with the money I had left over.

This would then leave me with the cash from my father’s house once we decided what we are doing with it.

Would the lender take into account that I own a third of a house when I applied? Would this work in my favour?

Also, at my age, what would be the max term they would lend over?

I’m afraid it’s over 15 years since I’ve had a mortgage and things have changed significantly since then.

Thank you.

System

If you like your father’s house, have you considered buying out your siblings?

Leothecat

Hello
So the situation has moved on somewhat.

I do like living here in my father’s house but do feel that I need to get myself a mortgage in some shape or form so that when the inevitable happens and one of my siblings needs their money I can at least move to another house and not be stuck renting for the rest of my days.

My sister is not open to selling me her share, however my brother may be.

My question is; can I take a mortgage out against my father’s house to pay off my brother if my sister is retaining her share? How would that work with the mortgage company and the deeds? I have heard that mortgage companies will not allow one person on mortgage but 2 people on deeds. Is this correct and if so is there any way around it?

Thanks for any advice.

CentiaRoyal

If your sister does not want to sell her share, could she buy you out? If the three of you want different things from the house and cannot agree a way forward then you are going to have to sell it as you could lose out on your £60k inheritance if you don't.

Unicorn_cottage

If your sister does not want to sell you her share is she hoping to buy the property or is she willing to sell it on the open market?

Leothecat

No, I don’t believe that she wants to sell at all. She would rather hang onto her investment for the meantime, ideally with me occupying the house and just paying bills.

I’m also not sure that either she or my brother would want to buy me out, although I could be completely wrong.
We are getting together tomorrow to talk through options.

So, is it allowed for me to take a mortgage on part of a property with with 2 others on the deeds?

Thanks

Thrugelmir

Leothecat wrote: »

So, is it allowed for me to take a mortgage on part of a property with with 2 others on the deeds?

The mortgage charge would be on the whole property. Lenders in the main will require all parties to become jointly and severally liable for the debt.

You need to have an adult conversation with your sister. Perhaps when a little more time has passed. No doubt there's still emotion clouding decision making. .