Advice on FTB / Probate property

jemima82

Looking for any experience/advice please!

Myself and sibling are joint executors and beneficiaries of our parent’s estate. Confirmation (/probate - we’re in Scotland) is awaited.

My sibling lives in the family home to be sold, and has not owned property before. We will split the proceeds 50/50 once sold.

Sibling may have enough funds inc own savings to purchase a property outright (taking into account the estate proceeds).

How can we best manage this - is it worth them looking for a new property before confirmation is in place and/or the family home is on the market?

I think we’d like the family home to be emptied and redecorated as early as possible, but that would mean sibling having to be elsewhere. They don’t want to have to get a mortgage even for the short term.

has anyone experience of this - is a form of bridging loan possible?

I hope this makes sense but sorry if not - happy to clarify anything!

thanks in advance 

propertyrental

Is probate likely to be straight forward or complex? Inheritance tax o pay? Try to get clear idea of timescales.

Remember getting pobate ad selling the property may not = 'winding up he Estate'. You may need to keep £ in the Estate in case other debts come to light.

But assuming no issues, can sibling not remain in the property while you redecorate? Emptying the property can be done in a day via removals company or house clearance or charity. So no harm house-hunting.

What you don't want to do is house-hunt, find dream home, and then discover there are probate delays, or difficulties selling because you over-price etc.

jemima82

Thanks for answering! It should be very straightforward, no IHT and no debts.  

If it comes to it, yes - although with it having been the family home for decades there’s a lot to be sorted through in respect of clearance.  Plus painting & new carpets much easier in an empty house. 

Do you know if it’s possible to offer on a new property under the circumstances of ‘there will be money to pay for it, once the probate property sells’? I might be overthinking - maybe it’s just the same as a normal chain…

Yorkie1

Are you sure that expenditure on painting and particularly new carpets will be needed?

Many probate properties are sold as seen, albeit with a reduction to recognise that the new owners will need to do this.

The risk is that you put a lot of money into decorating and carpets, only for the new owners not to like them anyway (particularly with carpets), unless it's a FTB type house where perhaps the purchasers will be starting from scratch with perhaps more limited budgets.

user1977

jemima82 said:

Do you know if it’s possible to offer on a new property under the circumstances of ‘there will be money to pay for it, once the probate property sells’?

In theory yes, you can make your offer conditional on all sorts of things, but not a hope if you're buying in any sort of competitive market as any other buyer is going to be more proceedable. You'd be lucky to find a seller willing to twiddle their thumbs while you wait to accept an offer for your place, even more lucky if you can't progress any sale anyway because you're still waiting for Confirmation.

FreeBear

Does sibling want to move ?

Would sibling be able to get a mortgage to buy 50% of the family home ?

jemima82

Thanks all - I’m in two minds about the repaint & carpets but want to present the house as well as possible.   I wouldn’t have thought it was a FTB property but guess these days with people buying later in life you never know?!

we wouldn’t market until after confirmation is granted. (Edit: and I see what you mean @user1977 - think that’s where I was thinking maybe a bridging loan could be used but they do seem expensive)

Sibling does want to move - it’s too much space and maintenance for one person.

user1977

I don't really see what the problem is with doing it the "normal" way i.e. accept an offer and then offer on a property to buy - unless it's something very difficult to find they're wanting to buy.