Inheritance dilemma

Marmaduke123

I also don't think your husband should be interfering in this, which is a matter between you and your sister. It's OK for him to express an opinion, but not to push you to do something you are not happy about. I hope you manage to find a satisfactory solution.

Sea_Shell

So, she doesn't want a mortgage.   Not many people do, if given the choice 😉

No she wants her cake and eat it!!

So it's more "hard cheese" than cake needed IMO.

If she can't afford to keep the house, then she can't keep it.  

She might have good intentions to pay you the difference eventually, but I can see where your OH is coming from as it could drag on for years, and could continue to cost you time, money and your sanity!!

cymruchris

At mid 40's she could get a 20 year mortgage without an issue - so lower payments but over a longer period.

There's a likelihood of the house going up in value over those 20 years - whereas your inheritance in cash won't (aside from some interest from the bank possibly).

So if she's thinking about 'having to pay interest' and it not being fair - at the end of the mortgage she'd be in a position where she wholly owned the asset at whatever the value was at that time, and it would likely be considerably higher than it is today.

Property and inheritance is often contentious - so it can be a difficult path to go down and keep everyone happy, but the reality is the value of the total assets need to be split equally unless you agree otherwise.

As much as you've never had a problem with your sister, has she ever owed you a large sum of money like you're proposing before?

Family loans can be very problematic - often leading to fallings out - and monies never being repaid.

If you're comfortable that if you lose out on £80k and a sister - that you won't be bitter about it for the rest of your life - and can brush it off without cause or concern - then go with what you want to do. Most people wouldn't want that - so it's better to resolve it now.

The house - although your parents, is just a house. It's just an asset. A pile of bricks and mortar. Yes it has memories - but it is just a house. 

Options really are:

- For her to mortgage to cover the shortfall and the house becomes hers

- Sell the house - split the total estate proceeds

- Vary the inheritance so that she gets the house and you get the money with a bit of her savings while being prepared to lose the remainder.

pinkshoes

ValleyField1973 said:

This is part of it; they don't think it should be this way or for it to be fair, if it say takes 10-15 years to all be squared off. 

She is dead against getting a mortgage and she is in her mid 40's so she'd probably only be able to get a 10 year mortgage which would likely take most of her income each month. 

My initial thought was that your husband is being a bit of an idiot, but the bit in bold I find really odd and a little concerning.

What she is proposing is that you "loan" her £80k instead of her taking out a mortgage. As this is your inheritance too, it is fair that she pays you interest on this money, because otherwise you are losing out (especially with rates rising!).

Because the money she would be borrowing is only a small percentage of the house, she can still get a good interest rate. If she is mid 40s she can borrow over 20 years!!!

So a quick calculator online... she can borrow £80k over 15 years with HSBC fixed for 5 years paying £550 a month. 

If she is going to pay you back, I would also suggest £500 to £600 a month which will then be similar to the mortgage.

It makes more sense she takes the mortgage as it then also keeps your husband happy. 

Unless of course your sister has some sort of dodgy job that a bank won't accept as a sensible employment to raise a mortgage against? 

kazwookie

Sell the house once and for all, take your sister to court if need be, (it will use some of the money up) but sister wants to 'live off you' while she pays you.

Ath_Wat

Not entirely sure why everyone is assuming OH is male.  Have I missed it?

Keep_pedalling

ValleyField1973 said:

Keep_pedalling said:

pickledonionspaceraider said:

Not being funny, but why is your husband jumping in the middle?  Is this not your inheritance, but he is treating it like it is his

If you trust your sister - I do not see the big issue to be pushing for it now?

Because he probably thinks this will go on forever, and he could be quite right..

This is part of it; they don't think it should be this way or for it to be fair, if it say takes 10-15 years to all be squared off. 

She is dead against getting a mortgage and she is in her mid 40's so she'd probably only be able to get a 10 year mortgage which would likely take most of her income each month. 

Mid 40s is still young there is no reason why she can’t a longer term, but even if that was the case she only needs a very small mortgage so paying one off before she reaches retirement age should be no problem.

Frankly like your husband I think she is absolutely take the Michael.

sammyjammy

Ath_Wat said:

Not entirely sure why everyone is assuming OH is male.  Have I missed it?

Does it really matter?  I am sure the OP is not offended if some have assumed incorrectly.

OP how about something that suits you both and as part of the process of signing over the house etc the solicitors adds a charge for the £80k and an interest rate is agreed.  She can't have it all her own way.

SunnyCyprus

Or... you own 50% of the house, so why not charge her some rent while she lives in it? 

SadieO

I'm 44 and have just been approved for a 25 year mortgage with no issues whatsoever. Broker just mentioned it might start to be an issue when you get to the term taking you over 70 years old. 

OP your sister not wanting a mortgage is irrelevant. I mean, I doubt its a thing anyone actively wants if they can get away without one! She doesn't want to owe the bank (and pay interest, presumably) but she is happy to owe you (and not pay interest, presumably) well that works out well for her doesn't it! And she actually has the money to buy you out but she wants to "keep some back"?! So basically she wants to use your money not hers?

Also worth bearing in mind that if she ever wants to sell this house in the future it will almost certainly have increased in value whereas your lump sum won't have. Arguably with inflation it might have decreased in value! She certainly seems to be coming out best in all these scenarios and I don't blame your OH for being concerned.