mortgage to purchase siblings share of house - property has equity release loan

efes_shareholder

My mother is terminally ill , diagnosed just as I was about to embark on a house purchase. 
Thinking ahead I'd like to retain and purchase her house.
Background.
The house is worth approx 340k and is left in my mums will jointly to myself and my sibling.
The house has an equity release loan and my mother has some personal credit card debt , totally around 60k collectively which would need to be paid by the estate.
My position
I have 130k from the sale of my marital home and currently reside with my mum and give care. i earn 27k a year and when I was seeking advice on mortgages was told I could borrow around 130 however this was with me putting a large deposit down ( was looking to buy at around 250k)
What I envisaged
Ideally what I would like is to retain my mums house and live here and own it exclusively , I have the means to clear the debts against the estate and once these are paid I calculate I would need to provide my sister with 140k to obtain her share. In my head I could find 60k from my 130k in savings to get the debts of off our backs. I would then look to obtain a mortgage of around 130k and top it up with a further 10k to acquire my sisters share. This would leave me with around 60k to carry out remedial and upgrade works which are required as the house is in a state of neglect and in my opinion would need a replacement bathroom and cloakroom to make it at least marketable.
Cloudy water
i've spoken to a friend who deals in finance and he is off the opinion that I would need to put down extra cash to obtain the 130k mortgage and that my inherited share of the house would not be considered as a deposit against the mortgage , I've also spoken to another who thinks its as straight forward as me seeking a mortgage for 130k and doing things as i've envisaged so I am slightly confused.
If I technically own 50% of the house , do I need to put extra cash in to secure a mortgage against it ?
It is slightly sensitive as for the moment mum is here and has all of her wits , we know her time is limited but we don't know a timescale , as I was looking to buy when we recieved the diagnosis and circumstances have put a halt on this , I am trying to think ahead and ascertain if what I would like to do in the future is viable..........
By my estimations , I would need in the region of 40k accessible when all signed , sealed and delivered in order to carry out works and have an emergancy fund

Keep_pedalling

The numbers don’t look viable to me, and that may be a good thing as it is likely to stop you having to deal with a property that sounds like a serious money pit. 

efes_shareholder

Keep_pedalling said:

The numbers don’t look viable to me, and that may be a good thing as it is likely to stop you having to deal with a property that sounds like a serious money pit. 

its a 1970's build , its structurally ok , boiler done around 10 years ago , windows around the same - kitchen only 3 years ago but my mum has mental health issues and nothing has been looked after. It basically needs a complete overhaul in terms of decor flooring and bathrooms. the main facility I would need to add would be off street parking which there is facility for but its expensive to get kerb dropped etc via council.
It is comfortably do able if I my share of equity is taken in to consideration for the deposit , If I have to contribution cash then I think a sale and a bigger deposit towards another property are the better option.

efes_shareholder

gettingtheresometime said:

Why would you need to find £60K to pay off the debt and then another £140K to pay off your sister?
Given your figures the net estate would be around the £280K mark so you and your sister's inheritance would be £140K surely? So if you paid off the debts and gave (either from your savings or you got a mortgage) your sister £80K that would be right surely?

The equity release loan would need to be cleared in order to retain the house.
The house is worth around 340k which would equate without the debt to 170k each   , taking in to account the debts it would bring the net value to 280k so I would pay the 60k to retain the house but remove 30k of this from my sisters share which would bring it to 140k 

getmore4less

£340-£60 = £280k,  you get £140k sis gets £140k

You need a total of £200k to buy the place  you have £130k in cash so £70k borrowed

You buy the house off the  estate using your £140k + cash + mortgage  total £340k

You share of any inheritance counts towards the LTV for any borrowing

efes_shareholder

getmore4less said:

£340-£60 = £280k,  you get £140k sis gets £140k

You need a total of £200k to buy the place  you have £130k in cash so £70k borrowed

You buy the house off the  estate using your £140k + cash + mortgage  total £340k

You share of any inheritance counts towards the LTV for any borrowing

If I borrowed my max this would leave me 60k to do any required renovation works , i've estimated what I would like to do between 30-40k depending on spec and what I undertake myself so this is acheivable 

getmore4less

Should be possible to borrow more on £27k and less than 60%LTV

efes_shareholder

getmore4less said:

Should be possible to borrow more on £27k and less than 60%LTV

I believe the max i can get is in the region of 135k 

gettingtheresometime

efes_shareholder said:

gettingtheresometime said:

Why would you need to find £60K to pay off the debt and then another £140K to pay off your sister?
Given your figures the net estate would be around the £280K mark so you and your sister's inheritance would be £140K surely? So if you paid off the debts and gave (either from your savings or you got a mortgage) your sister £80K that would be right surely?

The equity release loan would need to be cleared in order to retain the house.
The house is worth around 340k which would equate without the debt to 170k each   , taking in to account the debts it would bring the net value to 280k so I would pay the 60k to retain the house but remove 30k of this from my sisters share which would bring it to 140k 

Sorry I got my figures totally muddled up & when I re-read what I posted, realised that I'd confused myself so deleted my post hoping no one had seen my school girl error

efes_shareholder

gettingtheresometime said:

efes_shareholder said:

gettingtheresometime said:

Why would you need to find £60K to pay off the debt and then another £140K to pay off your sister?
Given your figures the net estate would be around the £280K mark so you and your sister's inheritance would be £140K surely? So if you paid off the debts and gave (either from your savings or you got a mortgage) your sister £80K that would be right surely?

The equity release loan would need to be cleared in order to retain the house.
The house is worth around 340k which would equate without the debt to 170k each   , taking in to account the debts it would bring the net value to 280k so I would pay the 60k to retain the house but remove 30k of this from my sisters share which would bring it to 140k 

Sorry I got my figures totally muddled up & when I re-read what I posted, realised that I'd confused myself so deleted my post hoping no one had seen my school girl error

I get completely confused every time i try and work it out so completely understand