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    • kelloggs36
    • By kelloggs36 12th Oct 18, 9:39 PM
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    kelloggs36
    Inherited house and buying out
    • #1
    • 12th Oct 18, 9:39 PM
    Inherited house and buying out 12th Oct 18 at 9:39 PM
    I hope you lot can help me! My mum died back in August and bequeathed her property (less an amount for grandchildren) to my sister and myself. Just weeks prior to this, she 'gave' my sister 50k as a deposit to purchase a house which was due to complete next week. However, her mortgage company have now decided at the 11th hour that they want another 12k deposit before they will lend her the money which she does not have at present. My mum made it clear (but did not have time to put it in her will, so I know I have to trust my sister) that the 50k deposit was to be 'put back' so to speak upon her death so that my sister effectively inherits 50k less and I get that 50k. The plan was that we would sell the house - valued at 325k - that I would get 50k and then we would split the remainder in half so that we were 100% equal. Because the mortgage company are now making new demands which threaten to scupper her purchase (it will as the house is not under offer and there is no sign of the money becoming available any time soon), my sister has suggested that she buy me out of the house which I am happy about.

    I want to know whether any lender would want to do the usual searches etc that they would normally do upon lending and how different the conveyancing procedure would be in this situation? The amount she needs to borrow is 187,500 which is the agreement as outlined above. I know she would need to ask her lender whether they would transfer the offer to the new property taking into account that she actually now needs to borrow 22k less than she needed when buying the house. The house has not yet been re-registered into our names so do we need to do that first with a specific portion share or can she just buy it without it being transferred first? We have probate already and we are both executors of mum's will.


    I hope this makes sense.
Page 2
    • AdrianC
    • By AdrianC 13th Oct 18, 3:23 PM
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    AdrianC
    Think of it more as a remortgage - and, yes, they'll want to do all the usual checks they'd do on that.
    • kelloggs36
    • By kelloggs36 13th Oct 18, 3:25 PM
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    kelloggs36
    I can't follow your logic. If she borrows 162.5K plus an extra 25k to pay you 187.5K she will be left with 50k in her pocket?
    Originally posted by Tom99
    And so will I as she then pays half of what is left.
    • xylophone
    • By xylophone 13th Oct 18, 3:26 PM
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    xylophone
    You declared the loan of 50,000 as an asset of the estate.

    You have paid out the specific pecuniary legacies from the exor account.

    You and your sister are beneficiaries of the loan asset and of the house.

    Why doesn't your sister pay you 25,000 and then borrow half the value of the house which will be paid to you once the mortgage formalities are complete?
    • kelloggs36
    • By kelloggs36 13th Oct 18, 4:45 PM
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    kelloggs36
    Because she needs the money to buy furniture and do up the house. I coupd ask though I suppose.
    • xylophone
    • By xylophone 13th Oct 18, 6:29 PM
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    xylophone
    Because she needs the money to buy furniture and do up the house. I coupd ask though I suppose.
    Then she can pay you your 25,000 now and take a larger loan against the property?
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