Personal loan for house improvements - complex arrangement

cathal2010

Hi,
a bit of a complex arrangement.

• I bought a house with my late wife.
• Her sister is in charge of her(late wife) estate in trust for the children (both minors)
• She and I do not get on.
• In order to remortgage the house, I would need to buy the trust out (They insist)
• I cant afford this.
  
• The house is too small for our current needs.
• In order to complete the extension, I would need in the region of 30K to 50K. (I have 50K saved, this would be in addition)
• my income after essential mortgage bills etc is around 1.5K a month
• I have yet to speak to an advisor, loan / financial or otherwise.

What would be my best course of action

Nasqueron

Sell the house and get a mortgage on a different house?

Can you get approval for the extension? 

gwynlas

It does sound complicated but I presume that you bought the property together as tenants in common and that your late wifes share is in trust with sister in law. 
Was your wifes share of mortgage paid up at this point?
If not and you are paying whole of original mortgage then childrens share would be half of value when mum died.with this sum invested in current house.
Complications arise as presumably house would need to be valued in current state and also projected value with extension built at your expense
Building costs are very high and could run away from you.
You cannot afford payments on personal loan at current interest rates.
If house cannot be adapted to suit for £50K then I suggest that you consider selling up and moving somewhere that better suits your needs as a family.
Think outside the box as to what is really needed eg, could a bedroom be created downstairs or would a second bathroom suffice.
You could post a floorplan here for suggestions.

retiredbanker1

The problem as I see it is - if the house is sold and the OP and the sister in law are not talking - she ''could'' demand the sale crystallises, the amount of money, (half the sale price) owed to the children - leaving OP with only the other half to buy the next house.

It could get messy and expensive and solicitors will love for your business.

MEM62

retiredbanker1 said:

The problem as I see it is - if the house is sold and the OP and the sister in law are not talking - she ''could'' demand the sale crystallises, the amount of money, (half the sale price) owed to the children - leaving OP with only the other half to buy the next house.

It could get messy and expensive and solicitors will love for your business.

But if any of the late wife's share (now in trust) is mortgaged, the her share is no 50% of the sale value.  It is 50% of the equity.  Depending on the amount of mortgage still owed, this could be considerably less. 

One does wonder why the wife did not entrust the husband with looking after the children's inheritance.  Perhaps she was poorly advised.