Buying parents house.

Marvel1

Would be able to obtain a mortgage for £100,000? Are you working?

You can try this from Barclays: https://www.barclays.co.uk/mortgages/mortgage-calculator/borrowing-calculator/#/borrow

Or you can do a decision in principle, this is from Nationwide:

https://www.nationwide.co.uk/mortgages/decision-in-principle/#what-is-a-decision-in-principle

Does a Decision in Principle affect your credit score?

We’ll do a soft credit check when you apply for a Decision in Principle. Soft credit checks do not affect your credit rating. They do not appear to lenders on your credit report and will not affect your ability to apply for borrowing in the future. If you go on to apply for a full mortgage application, we’ll run a formal credit check which will leave a foot print on your credit report.

35har1old

Jude57 said:

slenderkitten said:

_Penny_Dreadful said:

slenderkitten said:

Keep_pedalling said:

slenderkitten said:

Schwarzwald said:

You seem to have some fundamental problems with following this.

if there is £150k in value that you 3 split equally, everyone gets £50k.
forget about the fact that you want to buy your MUM’s house, it doesnt matter. You want to be A house. So if you use the 50k for a deposit on a house plus mortgage your money is stuck in the equity of the house.
What your siblings do with their money doesnt really matter to you / is none of your business. They might end up buying another house too, so how does that matter?

you all get 50k, you decide to buy a property with it.

I just feel aggrieved to be honest given that I do the majority of the care, they have a life I dont, I have to keep an eye on her in case she falls or something else happens I've installed cameras recently for this purpose.

They won't be buying any properties with it. It's lost that theirs ps debt free nod I buy this house and mine wouldn't be. 

It seems that you and your mother have a mutual benefit from the arrangement. You give her care and security and she provides a roof over your head.

You seem very confused on the need for a deposit in the event you want to buy out your siblings share of the house on your mother’s death, when the reality is very simple. You would not need a deposit as you would have at least 1/3rd of the equity from your inheritance.

I don't know about this equity situation you mentioned you say, I just understand buying a house from a traditional percentage deposit situation. Seems you are telling me there are different ways to buy a house which I did not know about?  

People have been telling you for 4 pages now that you can use the inherited equity as your deposit. 

_Penny_Dreadful said:

slenderkitten said:

Keep_pedalling said:

slenderkitten said:

Schwarzwald said:

You seem to have some fundamental problems with following this.

if there is £150k in value that you 3 split equally, everyone gets £50k.
forget about the fact that you want to buy your MUM’s house, it doesnt matter. You want to be A house. So if you use the 50k for a deposit on a house plus mortgage your money is stuck in the equity of the house.
What your siblings do with their money doesnt really matter to you / is none of your business. They might end up buying another house too, so how does that matter?

you all get 50k, you decide to buy a property with it.

I just feel aggrieved to be honest given that I do the majority of the care, they have a life I dont, I have to keep an eye on her in case she falls or something else happens I've installed cameras recently for this purpose.

They won't be buying any properties with it. It's lost that theirs ps debt free nod I buy this house and mine wouldn't be. 

It seems that you and your mother have a mutual benefit from the arrangement. You give her care and security and she provides a roof over your head.

You seem very confused on the need for a deposit in the event you want to buy out your siblings share of the house on your mother’s death, when the reality is very simple. You would not need a deposit as you would have at least 1/3rd of the equity from your inheritance.

I don't know about this equity situation you mentioned you say, I just understand buying a house from a traditional percentage deposit situation. Seems you are telling me there are different ways to buy a house which I did not know about?  

People have been telling you for 4 pages now that you can use the inherited equity as your deposit. 

Ok I get it now, just wish people would understand that in new to this, which I did state at the beginning.

We already have a WILL in place and also LPA there's no dispute, the poster above you are writing things that is not in the equation, I can't put into words what it has cost me to move 300 miles only put it into multiple thousands of ££  more than what I have described on this thread.

Thanks for your input I'll look elsewhere for help and information into the equity situation. 

I feel it important to point out that 'we' don't have a Will. Your mother has made HER Will and can change it at any time to vary the bequests she leaves. She could choose to leave everything, house included, to the local cats home and as long as she has mental capacity when she signs it, that Will would be valid.

It's also important to understand that your mother could, at some point, need residential care. It's possible you, with your own health issues, might not be able to manage her care at home. It's possible that the house might have to be sold to fund the care your mother needs and no, it's not possible to safeguard 'your' inheritance from that because the local authority will certainly make sure any assets your mother has are, rightly, used to fund her care. And if course, as you know, those with POA must always act in the best interests of the person they have POA for. 

Every year that passes makes the mortgage more expensive due to length the mortgage can run.
Is the will future proof 

Sea_Shell

Sea_Shell said:

Will you be able to afford to stay in the house once you have a £100k mortgage to pay and be responsible for ALL the bills?

If not, your only option* is to agree to sell up and find somewhere you can afford.

What other assets does you mum have?  Cash, savings etc.



*being fair to your siblings.

@slenderkitten

In the absence of an answer to these questions, then what I will say is that, when the time comes, please don't make the situation harder for your siblings than it needs to be, by digging your heels in and refusing to engage in the process of finalising the estate, because you feels it's "unfair".   

It appears that, as it stands, you won't have a "legal" right to remain in the property for a prolonged period, so don't make them have to take legal action to get you out.   Those situations rarely end well, and will eat in to all your inheritances.

slenderkitten

Sea_Shell said:

Sea_Shell said:

Will you be able to afford to stay in the house once you have a £100k mortgage to pay and be responsible for ALL the bills?

If not, your only option* is to agree to sell up and find somewhere you can afford.

What other assets does you mum have?  Cash, savings etc.



*being fair to your siblings.

@slenderkitten

In the absence of an answer to these questions, then what I will say is that, when the time comes, please don't make the situation harder for your siblings than it needs to be, by digging your heels in and refusing to engage in the process of finalising the estate, because you feels it's "unfair".   

It appears that, as it stands, you won't have a "legal" right to remain in the property for a prolonged period, so don't make them have to take legal action to get you out.   Those situations rarely end well, and will eat in to all your inheritances.

I've no idea to what you are referring to.  I'm asking about purchase of parent property, nothing more.

slenderkitten

I feel it important to point out that 'we' don't have a Will. Your mother has made HER Will and can change it at any time to vary the bequests she leaves. She could choose to leave everything, house included, to the local cats home and as long as she has mental capacity when she signs it, that Will would be valid.

It's also important to understand that your mother could, at some point, need residential care. It's possible you, with your own health issues, might not be able to manage her care at home. It's possible that the house might have to be sold to fund the care your mother needs and no, it's not possible to safeguard 'your' inheritance from that because the local authority will certainly make sure any assets your mother has are, rightly, used to fund her care. And if course, as you know, those with POA must always act in the best interests of the person they have POA for. 

I can only hope she wont need to go into a home, she is mobile and compis mentis right now.

slenderkitten

It would probably be better if you looked elsewhere as you do not like the truthful answers you are getting. You seem to believe that you are entitled to more than your siblings because you are doing all the caring. Surely your mother can see this and is up to her what to do with her money. The fact that your siblings a better off financially than you has no bearing on anything.

I've no idea why you coming out with this, you don't know me or my family, I didn't say i am entitled to more just annoyed at the situation as im the one in the worst situation and gave up my life from where i was living 300 miles away to come and look after her, no-one else would do it and give up their lives and they live round the corner, she would have already been dead if i didn't move in 2 years ago.  I am free to comment on my feelings though it is not part of why I came here.  I came here for advice to be given on a professional level which was easy to understand as i'm a newbie to all this; which was given so i'll go elsewhere to find the info required I don't take info just from one source, so nothing else needs to be said really. 

slenderkitten

I've no idea to what you are referring to.  I'm asking about purchase of parent property, nothing more.

I'm sorry that you don't understand what we're trying to say.

To purchase the property (from Mum's estate, when the time comes), as it stands, you're going to have to pay off (buy out) your siblings....to the tune of 2/3rds of the property value.

Or

You could refuse to engage with them, refuse to buy them out, and continue to occupy the house, thereby denying them their inheritance.

But hopefully you won't want to be that person.

Your not getting what Im saying, i already stated i've had the advise above its just that people like to pretend they know me or my situation beyond what i've stated and put words into my mouth, when i cam here for a professional opinon on what I can do to by the property given i said i'm brand new to all this.  It's the same thing i say to you why you are commenting on refusing to buy them out is outrageous.  Please stop and just answer the question that i asked that is all that needs to be commented on here; getting personal is inflaming this thread and giving me a bad experience to something that is simple enough question to those who know about it and can understand how to deliver that information in a simple enough format as the keyword newbie has been clearly indicated at the beginning of the thread.  And that only needed to be responsded to in a simple, easy to understand informative fashion, given that others will too have the same question and could read this thread and be disuaded coming here to ask a question.

BoGoF

What makes you think you were getting a 'professional opinion' from some random strangers on an Internet forum for free.

Professional opinion normally costs.

slenderkitten

BoGoF said:

What makes you think you were getting a 'professional opinion' from some random strangers on an Internet forum for free.

Professional opinion normally costs.

Because that is what you SHOULD do everyone on here is a STRANGER to everyone else. What happens on here is called asking a stranger a question!!  When I refer to professionalism it is how people behave, anyone who went through the situation or maybe there are people on here who are experts in the field would be suitably able to reply. 

Were you not taught at school how to deal with simple situations like this, did you back chat your teachers, did you backchat the mortgage advisor, your bank manager, your employer, your doctor every time they asked you a question, is that how you behave to someone you know asking you for advice about something, do you give back chat to your friends or family in a serious situation ................. no thought not.   Because you are old enough to know how to deal with situations professionally, it is not as if I asked a difficult or complex question compared to the many other thousands of conversation threads on this website is it, anyone who knows how to deal with people would know how to assess quickly that it was a simple bit of advice that was required, and know when to stop, especially when there is a clear indication that no further comment was required rather than continuing with more comments that were totally unncessary, and assuming things that does not apply!  

I actually miss the early days of internet 30 years ago becaue people knew how to behave not attacking someone for asking a question; people were friendly, and didn't want to waste their time with writing nonsense rather than moving onto the next topic they want to spend their time on and contribute something useful for someone else to learn from!!!

Sea_Shell

slenderkitten said:

I live with my elderly mother in her mortgage free house. I have 2 siblings we will share everything equally we have a will in place.

I am new to all this, how would I go about buying this place on a mortgage (hopefully I would be able to do it) after she dies, I am concerned that they will have free cash out of it but I won't and be saddled with a large debt and be worse off out of the 3 of us?

I don't know all the ins and out of this. 

Ok, then lets go back to the original opening post.   And your question.

After Mum dies, IF her will says that you all (3) inherit her estate in equal shares, then that's what has to happen.

Assuming her estate was just her house (no other cash etc), and using a value of £150,000 as an example.

Each of you would be set to inherit £50,000.     

If you want to remain living in the house, you will need to find a way to raise £100,000 to be able to give your siblings their inheritance.  *  

This means you would need to get a mortgage for this amount, using YOUR £50k inheritance as a deposit.

To do this, then you can approach any number of mortgage providers (High Street Building Society), or use an on-line comparison tool, to enter in all your details, to see what is available to you, at what monthly cost, interest rate, and over what length of time (term).

They will take into account that you are wishing to borrow just 66% of the value (£100,000 of £150,000), so that's your Loan to Value ratio (LTV).

66% is good, so that would be in your favour.     However, they would also take into account your income and if the payments would be affordable to you.  

You haven't said what you would be able to afford to pay, monthly.   So we can't tell if this is something that you would be able to afford to do.

Maybe let us know that, and we can do some rough sums for you.     Especially, as you'll also then be responsible for all the household bills too.    (Maybe make a list of all the bills and how much they all are, currently, along with your other outgoings for food/clothes etc.)

But assuming a mortgage is approved, you (or your conveyancing solicitor) would pass the money to your siblings, as their inheritance.

If a mortgage was NOT approved, then you'd need to make other decisions, quite quickly, so as to not disadvantage your siblings.**


So, that's the answer, to your specific question, as simply as I can put it.     Let us know any parts you're still unclear about?



*  Unless they decided (agreed) to forfeit their inheritance, and gift you the house, or some other agreement.

** This is where difficult conversations would start, and this is what some of us have alluded to, but we can leave all those "what ifs" to one side, and just deal with each bridge as (if) you come to it.    But sometimes its useful to know what might happen next in many different scenarios.    We weren't trying to be awkward, just giving you our experience of other threads and situations that we've come across over the years.   Sadly, it does go badly wrong for many families in your situation.