Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

Search
  • FIRST POST
    • Marshall218
    • By Marshall218 14th Jan 20, 7:09 PM
    • 6Posts
    • 3Thanks
    Marshall218
    Would appreciate any advice whatsoever after parent died intestate.
    • #1
    • 14th Jan 20, 7:09 PM
    Would appreciate any advice whatsoever after parent died intestate. 14th Jan 20 at 7:09 PM
    I apologise in advance for what may be stupid questions to ask; I, unfortunately, do not understand anything about how this sort of thing works and I did not envisage having to deal with this situation.

    My mum died intestate and has left an amount of debt totalling to around 65,000, of which around 37,000 is the mortgage on her house.

    I am her only child and she died single so I have been made the executor of her estate. I have had her house valued at 105,000.

    I would like to move into the property. I have had bad credit in the past (defaulted on an account as recently as three years ago) but am now debt-free and currently have 30,000 in savings.

    Providing I can get a mortgage with a deposit of 30,000, would I have to buy the house for 105,000 as per the valuation? Would this not mean that as the sole beneficiary of the estate, once the property has been sold and the debts have been paid, the remaining money from the sale (around 30,000 to 40,000) would just be given back to me?
Page 1
    • MovingForwards
    • By MovingForwards 14th Jan 20, 7:42 PM
    • 3,074 Posts
    • 3,689 Thanks
    MovingForwards
    • #2
    • 14th Jan 20, 7:42 PM
    • #2
    • 14th Jan 20, 7:42 PM
    You don't have to 'buy' the house from the estate as you are the only beneficiary, you just need to mortgage the property enough to cover you mom's outstanding mortgage and any other debts.

    Speak with a whole of market mortgage broker to see what lenders are available to you.

    My condolences for the loss of your mom.
    • Marshall218
    • By Marshall218 14th Jan 20, 7:53 PM
    • 6 Posts
    • 3 Thanks
    Marshall218
    • #3
    • 14th Jan 20, 7:53 PM
    • #3
    • 14th Jan 20, 7:53 PM
    You don't have to 'buy' the house from the estate as you are the only beneficiary, you just need to mortgage the property enough to cover you mom's outstanding mortgage and any other debts.

    Speak with a whole of market mortgage broker to see what lenders are available to you.

    My condolences for the loss of your mom.
    Originally posted by MovingForwards
    Thank you for your advice and your kind words. It is really appreciated.

    Just so I am clear, I could put down a deposit of 30,000 and get a mortgage for 65,000, pay off the debts and then I would own the property with a mortgage of 35,000?
    • MovingForwards
    • By MovingForwards 14th Jan 20, 8:21 PM
    • 3,074 Posts
    • 3,689 Thanks
    MovingForwards
    • #4
    • 14th Jan 20, 8:21 PM
    • #4
    • 14th Jan 20, 8:21 PM
    Thank you for your advice and your kind words. It is really appreciated.

    Just so I am clear, I could put down a deposit of 30,000 and get a mortgage for 65,000, pay off the debts and then I would own the property with a mortgage of 35,000?
    Originally posted by Marshall218
    Potentially you are looking to borrow 40k, use 25k of your savings, 2k legal fees, moving fees. Leaving you with 3k breathing fund to decorate, buy carpets, bits of furniture or just keep it in the bank.

    If you speak with a good broker (I would post on the mortgage board and see what the adverse brokers suggest), they will let you know your options.

    You may only need 10% deposit, or it could be 15 - 25% it depends on what your bad credit history is

    I am assuming you are working and have about 18k salary, no children or with partner / kids but both are working.
    • MovingForwards
    • By MovingForwards 14th Jan 20, 8:25 PM
    • 3,074 Posts
    • 3,689 Thanks
    MovingForwards
    • #5
    • 14th Jan 20, 8:25 PM
    • #5
    • 14th Jan 20, 8:25 PM
    https://forums.moneysavingexpert.com/forumdisplay.php?f=15

    Post on this board and the brokers will be able to comment.
    • TBagpuss
    • By TBagpuss 14th Jan 20, 8:30 PM
    • 7,778 Posts
    • 10,103 Thanks
    TBagpuss
    • #6
    • 14th Jan 20, 8:30 PM
    • #6
    • 14th Jan 20, 8:30 PM
    You don't need a mortgage of 65,000 in the first place if you already have 30K savings. You only need 65,000 in total, including your savings, t clear your mum's debt.

    So the way to go would probably be to apply for a mortgage of 39,000* to clear your mum's mortgage (and at the same time, transfer the house to your name), and use your 30,000 to clear the other debts your mum had.

    That leaves you with a 39K mortgage on a house worth 105k - you don't need to pay a separate deposit as you have the equity in the house already. It's the equivalent of putting down a deposit of 66,000.

    * technically you could get a mortgage for 35K, and use the last 4K of your savings towards paying off the mortgage, but in reality you will probably have other expenses, such as legal costs, so you may find that it makes sense to borrow the full 39K and have a bit of leeway for unexpected costs / emergencies
    .
    All posts are my personal opinion, not formal advice Always get proper, professional advice (particularly about anything legal!)
    • Marshall218
    • By Marshall218 14th Jan 20, 11:38 PM
    • 6 Posts
    • 3 Thanks
    Marshall218
    • #7
    • 14th Jan 20, 11:38 PM
    • #7
    • 14th Jan 20, 11:38 PM
    Appreciate the response so much, TBagpuss, but would I really not require a deposit considering my bad credit history?
    • Ozzuk
    • By Ozzuk 15th Jan 20, 9:51 AM
    • 1,720 Posts
    • 2,468 Thanks
    Ozzuk
    • #8
    • 15th Jan 20, 9:51 AM
    • #8
    • 15th Jan 20, 9:51 AM
    Appreciate the response so much, TBagpuss, but would I really not require a deposit considering my bad credit history?
    Originally posted by Marshall218
    Your share in the house is the deposit...you just need enough money (savings/own mortgage) to clear the debt/mortgage if you want to keep it.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

1,633Posts Today

8,561Users online

Martin's Twitter