Buying other half of an inherited house

cookie02

Hi @getmore4less, thanks for your advice on this.  The house was valued at 300k.  The lenders were basing the mortgage on my cousin’s salary (26.5k) and a deposit of 30k.  They wouldn’t consider her 50% value of the house.  I'm not sure why.  Maybe it was due to their mother’s affairs still being in progress at the time?  The younger one is working with my parents on the broker option using some of the brokers listed on MSE.  

@gwynlas you are right. My parents are really worried about this . They are considering paying for my older cousin to move into an apartment one month before the transaction goes through.  If she gets the money and is in the house, we don’t think she will leave.  The younger one will try and get a restraining order and she plans to change all the locks as soon as the sale completes.  Thank you for your advice.  

getmore4less

With 50% she needs to find £150k
On £26.5k that won't happen that's 5 times on a low wage. 

Even with £30k cash to put in that will be tight at 4.5 times.

Affordability might be the issue. 

This should have been with a broker from day 1.

Any more cash floating around from the estate. 

cookie02

Thank you for your help @getmore4less.  My cousin has managed to resolve the deposit issue as they have got access to two accounts from when their parents worked abroad.  She has a bigger deposit now and has spoken with a broker but also spoke with her bank again and it sounds like she has some options now, so she is very relieved and things are moving in the right direction now.  Thank you!

cookie02

Sorry for bringing back this old thread but I just wanted to say thank you for your help.  For anyone who finds themselves in a similar situation, and misses the boat on buying from the estate, the broker made a world of difference and was able to sort everything out for my cousin.  Personally, I've never used a broker, so it was interesting to see this from the sidelines as it was much more personal than my own (direct from bank) mortgage experiences.  I realise my cousin was probably really lucky as the broker went above and beyond and also advised on how to deal with the older cousin and getting them to vacate the house etc. 

It was my cousin's birthday and we saw her for the first time since before the first lockdown.  She is like the original happy version that we remember, instead of the deeply distressed person from the last couple of years.  She is so relieved to have her home settled (all locks changed), her sibling away (although there is still a lot of hurt there) and she is also doing really well at work again. All of us are so relieved, especially my parents.  Amazingly, none of us have ever used brokers and we wouldn't have thought of it if not for the advice here.  Thank you.  

gwynlas

Thank you for coming back with updte/ I think brokers might hve had a bad press in the pasrt when fee structures were different.  We have used one again recently and it made things so easy. In fact the savings made elsewhere more than covered the interest charges on the loan taken out and we did not have to pay anything for their services.

K_S

@cookie02 Thanks for updating the thread and glad to hear that the broker was able to help. Between 75-80% of all mortgage lending is done through intermediaries so it's definitely not out of the mainstream to use one  

Having said that, it is expected that the share will fall to about 50% over the coming decade as lenders increasingly automate processes, decision making and the FCA relaxes their rules on execution-only business.