Buying out a parents share of property
Discussion
Hi All,
Aware there are similar threads but starting a new one given specific circumstances.
Hypothetical/semi factual situation:
A property is owned outright by my parents as 'tenants in common', one passed away and their share of the property (50%) will pass to me on completion of probate..no idea on eta.
Question: would a mortgage broker be willing to let me buy out the remaining parents share Before the other half comes to me on completion of probate?
I believe that I can afford to buy out other parents half but of course it depends on whether a broker will have same view based on their assessment of my eligibility and there are other factors which I won't go into here (namely that as a PoA for my parent would need the permission of CoP/OPG that it's in my parents interest to buy them out).
I am only interested here in the mortgaging aspects...my line of thought/assumption is that a broker would want probate completed so that if I already own half the asset then they have a bit more comfort should things go kaput and I default...but I just don't know so any input from those who have been through this or are.mortgage gurus would be appreciated.
Oh and do I need to think about gifting implications or.is that only if I were buying under market value?
Thanks all!
Aware there are similar threads but starting a new one given specific circumstances.
Hypothetical/semi factual situation:
A property is owned outright by my parents as 'tenants in common', one passed away and their share of the property (50%) will pass to me on completion of probate..no idea on eta.
Question: would a mortgage broker be willing to let me buy out the remaining parents share Before the other half comes to me on completion of probate?
I believe that I can afford to buy out other parents half but of course it depends on whether a broker will have same view based on their assessment of my eligibility and there are other factors which I won't go into here (namely that as a PoA for my parent would need the permission of CoP/OPG that it's in my parents interest to buy them out).
I am only interested here in the mortgaging aspects...my line of thought/assumption is that a broker would want probate completed so that if I already own half the asset then they have a bit more comfort should things go kaput and I default...but I just don't know so any input from those who have been through this or are.mortgage gurus would be appreciated.
Oh and do I need to think about gifting implications or.is that only if I were buying under market value?
Thanks all!
My assumption would be that no mortgage company is going to support you to buy a part share of any property, as they would not be able to liquidate in the event of a default on your mortgage. Lenders usually require first charge on the property and that would no be possible with someone else (dead or alive) having an interest in it.
I would also imagine that lenders are not going to be swayed by the ‘promise’ of future ownership of the other half of the property and you will need probate to complete before you can apply for a mortgage on it.
As above, Sarnie is probably the man to give some guidance.
I would also imagine that lenders are not going to be swayed by the ‘promise’ of future ownership of the other half of the property and you will need probate to complete before you can apply for a mortgage on it.
As above, Sarnie is probably the man to give some guidance.
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