Inherited property

Deenport

I have inherited a 1/4 share of family home. Probate is almost finalised. The property is mortgage free but has a Repayment Charge against it as it is an ex council flat and building repairs were carried out 3 years ago and my parents were liable for a share of the cost. Unable to pay, they agreed a repayment plan with the council for approx £28k but have since both died. Payments are to be made annually for the next 28 years. Having no way of paying the debt, all beneficiaries agree that selling the property to pay off the charge is the way forward. My question is this, if it takes a long time to sell the flat, will I have shared liability to meet the yearly payments? And if when the flat sells at a loss and we cannot clear the charge fully, are we liable for any shortfall? 

Thanks 

Flugelhorn

I presume that the estate is liable for the payments while the sale is going ahead rather than individuals - presume the council are aware of the situation? 
If there is not enough money from the flat / other sources then the estate will be insolvent 

Mickey666

Have you ACTUALLY inherited the property yet - ie has it been transferred into your name?
The usual Way these things are dealt with is that everything remains in the deceased’s estate, under the control of the executor, until being distributed to the beneficiaries.  Thus, any debts and other liabilities are paid by the estate before anything is distributed to the beneficiaries and the beneficiaries incur no liabilities at all.  In cases where a property must be sold there will obviously be some associated costs - estate agent fees, conveyancing fees, insurance/maintenance costs prior to being sold etc.  The executor should keep a record of all such costs as part of the estate accounts.  When the house is finally sold and all debts/liabilities are paid by the estate then the executor can distribute the remaining amount according to the instructions in the will.  The beneficiaries cannot be liable for anything before distribution.  Even in the extreme event that an estate cannot pay its debts, the beneficiaries would still not be liable for anything - you cannot inherit a debt, though of course in such circumstances you wouldn’t actually inherit anything!

In this case, I’d expect that the executor would discuss the £28k debt and it’s repayments with the creditor and come to some sort of agreement whereby the debt is paid off in full once the house is sold.  But there would still be no beneficiary liability.

Just to add that the executor might also be a beneficiary.  However, even when they are the same person, the roles and responsibilities are very different and should not be confused.

lincroft1710

Why not ask the council if they want to buy the flat back?