Executor transferring property to beneficiary where there is an ER mortgage

rowleyburkin

Grateful for any opinions on the following:-

I am the executor for an estate which consists of a house worth around £395000 and £48000 in cash. There is an equity release mortgage on the property of about £142000.

I am also the major beneficiary in the will with 92% of the estate (4% each to 2 other friends of the deceased).

I'd like to live in the property and sell my current home. My solicitor says I can transfer the property (via an assent) to me (as a beneficiary) if I pay off the mortgage and the other two beneficiaries. She also says I may have to pay stamp duty and will have to get a formal valuation in order to calculate the 4% shares.

Is there any way the mortgage company can object to this and insist on a sale on the open market ? I can't see why as they get their money back either way.

Thanks all.

naedanger

rowleyburkin said:

Grateful for any opinions on the following:-

I am the executor for an estate which consists of a house worth around £395000 and £48000 in cash. There is an equity release mortgage on the property of about £142000.

I am also the major beneficiary in the will with 92% of the estate (4% each to 2 other friends of the deceased).

I'd like to live in the property and sell my current home. My solicitor says I can transfer the property (via an assent) to me (as a beneficiary) if I pay off the mortgage and the other two beneficiaries. She also says I may have to pay stamp duty and will have to get a formal valuation in order to calculate the 4% shares.

Is there any way the mortgage company can object to this and insist on a sale on the open market ? I can't see why as they get their money back either way.

Thanks all.

No, not as far as I am aware.

I would also have thought stamp duty could have been avoided - the other beneficiaries can receive their inheritance from the estate's cash and you can inherit the house (although you would need to finance the repayment of the mortgage from your own resources) and any balance of the estate's cash.

Keep_pedalling

They will just want their money, they don’t really care what you sell it for. I don’t think stamp duty applies to paying off a mortgage on an inherited property. 

TBagpuss

If the mortgage is based on a % pf the house value rather than a set amount + accrued interest then they might require (at least ) a formal valuation, but other than that I can't see why they would have an issue.