Inheritence and house sale

[Lanzarotelady]

Interested in others opinions here - what's fair?

Mum dies leaves house worth 160,000 and £60,000 in bank

3 adult children

1 living at home - never had a mortgage - has had a nomadic life style
2 living in a house, paid for - single
3 living in a house -paid for- married with children

1 know he needs to get a mortgage, but with no deposit and no real credit history is struggling to get one

He has proposed to use the £60,000 in the bank as a deposit, smaller mortgage etc, then when the house is sold, the other 2 get their share of the house, their share of the money in the bank, ie £80,000 each and he gets what is left.

I don't know if this is fair, open to abuse, favouring one above the other

What do you all think

He hasn't got a very well paid job, driver for an agency
He is a hard worker, but not very organised

I have found a variety of flats about the £90 000 mark, so hopefully with a decent deposit he will only have to get a 30,000 mortgage

Reading your OP again @Lanzaroteladyyou mention the Nomad has no real credit history. At 58, in this situation, he’s going to really struggle to get a mortgage offer even with a deposit. Lenders are really tough now (rightly so.) If he does get an offer it may not be at the favourable rate he thinks he might get. 58 years old, Without good credit history, a record of permanent employment and without evidence that he’s even paid rent, he’s not a great bet. You don’t want to be in a situation where he gets money up front, realises it won’t be enough to buy a small home for himself and then tries to drag things out even more.

remind your dh of this! And have you checked if he’s an executor yet? If so, he needs to be straight on this. If not, he should push the executors to do their job.

@Lanzaroteladymy post crossed with yours just there.

the key thing that jumps out of your post is that you have found flats for the 90k mark. There’s no guarantee he will be prepared to buy them. He might decide a bigger house rent free is preferable to a small flat and paying a mortgage!

The key thing is to knock this idea of upfront money on the head. The executors need to act on the will without delay. House goes on market. Nomad moves out. Apart from anything else, it will mean he’s getting used to paying rent before taking on a mortgage.

No one is suggesting any if the things you have mentioned.
the sibling isn’t suggesting he gets more.

There’s no guarantee though. The house needs a fair bit of work by the sounds of it, maybe more than expected to get a sale. It’s a complete unknown. Plus, giving 60k that’s in the bank now, means the Nomad is benefiting whereas the other two aren’t benefiting from the interest that money is currently accruing. Plus - quite simply - this is not following the terms of the will, which was the mother’s wishes.

The house has been valued ( nomad arranged that himself ) and he has been to see about a mortgage

100% agree with this and this is what worries me (but isn't worrying anyone else)

Everything three ways!

If he isn't, that should actually be accounted for before the estate is distributed

He could also consider part-ownership schemes (might still qualify if he has never owned a property before) or moving to a cheaper area.

So that’s what should happen. Who’s the executor?

The three of them

Remind your spouse that now the house is 1/3 in their name, should you decide to divorce them you’d be entitled to half of their share! Also, their share will now be subject to capital gains tax once sold.

Why is your DH so reluctant to get on with it? Is he sorry for his brother or in awe of his nomadic twattery?

I don't want to get divorced - I am actually happily married

Because their mum said they couldn't make him homeless, which is why they are both being so generous with the time limits

Their mum also left her estate to be shared equally. Anyhow he won’t be homeless, he’ll just have to pay rent and then can aim to use his share to secure a mortgage

This ^^

The thing that stood out for me is the idea that others get their share "when the house is sold" - except if "Nomad"'s the only one in it they could easily prevent that happening

Why create complications when your mum was quite clear she wanted it splitting 3 ways, presumably without endless delays?

He might decide a bigger house rent free is preferable to a small flat and paying a mortgage!

Edited to add, on this, that I'd be amazed if there's any "might" about it

Nomad's chickens are coming home to roost!

Split the cash now and the proceeds of the house sale on completion. Simples.

People like this who go through life as a ‘free spirit’, shirking the responsibility to get permanent work or pay their own rent/ mortgage, are quite comfortable to freeload off others who are doing precisely what they’re spent their life avoiding.

The OP and her dh have the responsibility of a mortgage. There’s no free lunch for them! Her dh really needs to take on board how selfish his sibling is being.

are you sure about this now? You couldn't remember before?

Sadly, with all the good advice, if the OP's partner doesn't want her advice and support and its come to the point of their arguing about it, there is nothing that she can do except step back. I am not saying that is right or proper but that seems to be the situation.

If your MIL wanted him not to be homeless, she should have re written her will.

Not write one thing in the will and then get the guiltys on her death bed when possibly his brother has been whispering poor me!

The will is the legal document and that is what needs to be followed.

Yes I have asked.

We have now had a more civil conversation and I have raised the possibility of him not actually getting a mortgage as he isn't exactly a great candidate and what will you all do then? He will then have to rent and claim benefits if he can.