Charging order on late mums property

kris80

I am currently in the process of buying my late mums house, however there is a ccj charging order/restriction on land registry. I am buying the house for the price mum owes her mortgage. Can this be done with the restrictions on the land property?

greatcrested

No. The executers of her Estate need to pay off her debts before the house can be sold. That means the mortgage and the debt which resulted in the ccj.

If the Estate does not have sufficient other assets for this, the debts could be paid from the sale of the property.

Who are the Executers, and who are the Beneficiaries?

kris80

I have applied for letters of administration. So does that mean I need to have a mortgage for the value still owed and the loan values?

Martin_the_Unjust

Was there no life insurance linked to the mortgage?

Robin9

Unless you have the cash or can raise the money elsewhere - the debt has to be paid from the estate.

kris80

There was life insurance paid direct when she was ill but that’s been used to pay other things.

Thrugelmir

Are you aware of your responsibilities as an executor of your late mothers estate? 
https://forums.moneysavingexpert.com/discussion/6146818/land-registry-and-mortgage#latest

greatcrested

It would help if you gave a rough overview

* value of Estate

* value of property for probate

* value of mortgage

* value of CCJ

* value any other Estate debts

* whether you are Beneficiary/joint beneficiary - why you are buying

* IHT liability if any and whether paid (or how to be paid)

kris80

Not sure I understand what you mean. I’ve applied to have letters of administration. I am seeking a mortgage to pay outstanding so am asking do I need to seek a bigger mortgage to pay off the chargers.

AnotherJoe

kris80 said:

I have applied for letters of administration. So does that mean I need to have a mortgage for the value still owed and the loan values?

Yes it does. The folks who replied in your other thread clearly stated that and i think you posted you were getting a bigger mortgage to cover the loans (and this pay them off) as well?

As said by those other folks you need also to get an agreement from your siblings they are happy for you to inherit the house. This could be done with a deed of variation or they could probably just write letters to you preferably signed and witnessed. What you dont want is you have a bust up in a few years time and then they complain you didnt distribute the estate properly.

To avoid it sounding like you dont trust them (and potentially cause a bust up ! ) i suggest you tell them (and this is true) that this so  you can show you did your duties as an executor properly.And you might want to have a solicitor do this via deed of variation. Will cost a few hundred quid but could save thousands down the line.

Finally, my commiserations.

kris80

The value of mums property is around £95,000. I am looking to buy it for what’s currently owed on the mortgage which is 32,000. The loan chargers are £10,000 so am thinking I need a mortgage for £42,000. Letters of administration hasn’t been issued yet. There is no inheritance tax to pay. I have lived at the property all my life so it’s my home where my family now live.