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Buying a house from family.

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LynseyLily
LynseyLily Posts: 4 Newbie
in House buying, renting & selling
Hey, looking for some advise please, my partner and I are buying a house from his aunt, she has recently inherited the house from a non blood line family member which has now gone to probate. We’re were disappointed to find that we could not go though the application for a mortgage as the advisor said that my partner’s aunt would need to own the property for 6 months before she could sell ??
He mentioned this was back to back selling ? From looking up on this this would only be if a family member bought the house and sold within 6 months,not if if someone has inherited it

Any advise would be greatly appreciated.

Comments

  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
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    This is ridiculous on two counts.
    First of all, if the house is going through probate the aunts name won't be on the deeds yet and you'd buy from the estate.
    Secondly not all mortage companies will have such a ban and even those that do some would surely make an exception in a case like this.
    Find a new adviser. Is this one from a bank perhaps ?
  • davidmcn
    davidmcn Posts: 23,596 Forumite
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    edited 16 February 2019 at 8:54PM
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    The condition in the CML Handbook (i.e. the standard solicitors instructions for most lenders) is
    5.1.1 Please report to us immediately if the owner or registered proprietor has been registered for less than six months.
    so I suppose it's conceivable that aunty becomes the "owner" on the basis that she's beneficially entitled to the property even if it's never registered in her name.

    In any event, it's a "please report to us", not "we won't lend" - and I doubt it's difficult to find a lender who will take a sensible approach to it.

    Obviously it doesn't involve the sort of mortgage fraud / money-laundering concern which surrounds back-to-back transactions (unless the death was arranged too!).
  • LynseyLily
    LynseyLily Posts: 4 Newbie
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    Yes it was a mortgage advisor with the bank. Thats what I thought. The house is going straight from the estate to us, so I fact it would never go in her name. Thank you for your advise
  • LynseyLily
    LynseyLily Posts: 4 Newbie
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    I thought that. Thanks for you're reply
  • G_M
    G_M Posts: 51,977 Forumite
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    The Executer(s) simply trasfer the property from the deceased's name to yours.

    You pay the deceased's Estate. Your aunt inherits the money - she never owns the property.


    (assumes there's enough in the Estate to cover Ineritance Tax, debts etc)
  • getmore4less
    getmore4less Posts: 46,882 Forumite
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    Buying of the estate should be straight forward transaction no need to even mention the aunt is a beneficiary.


    Are you buying 100% market value with your own money or is she gifting you some?
  • unforeseen
    unforeseen Posts: 7,280 Forumite
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    And it's a problem for the estate to deal with. Probate, IHT & the estate have absolutely nothing to do with the OP.
  • LynseyLily
    LynseyLily Posts: 4 Newbie
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    House is valued slightly higher than what we will be paying. So we could use part of the reduced price as the deposit.

    Thanks for your reply
  • Slithery
    Slithery Posts: 6,046 Forumite
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    edited 17 February 2019 at 2:42PM
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    LynseyLily wrote: »
    House is valued slightly higher than what we will be paying. So we could use part of the reduced price as the deposit.
    That complicates things incredibly...

    I don't have time to explain as I'm on my way out but I'm sure someone will be along soon with a proper explanation of the issues it brings.
  • getmore4less
    getmore4less Posts: 46,882 Forumite
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    LynseyLily wrote: »
    House is valued slightly higher than what we will be paying. So we could use part of the reduced price as the deposit.

    Thanks for your reply

    Will you be using some gifted equity or cash from the aunt?

    Keep is simple you pay 100% of your offer from your own funds and mortgage.
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