Struggling to buy mum out of house

[Tryandtryagain02]

Hello, I'm really struggling with a solution here, any ideas would be welcome! My mum and I inherited my Grandparents house 50/50 in 2021. I agreed to buy my mum out of her half, however, I haven't got very good credit. The mortgage broker tried multiple lenders who dealt with bad credit and unfortunately I was refused. Subsequently, my mum had a contract written with a solicitor that suggested I pay her rent (£550 a month) as this is the equivalent to half of what the rent would be and so we agreed. The rent is to be paid for 2 years and if I don't buy her out within this time then it has to be sold. It has caused endless arguments and ruined our relationship. I've sought advice from a solicitor who said that it would be enforced and my partner and our 3 children would have to sell. Every couple of weeks she gets angry and insists I sell the house as I won't get a mortgage. I've searched for other properties to buy and nothing is within my price range, renting is slim to none in my area and I'm running out of ideas of what I can do. The mortgage broker told us to go back in 6 months as they declined due to a loan I had taken out - which is now paid off. But I worry every day that when we do reapply we will be declined and I have no idea where we will end up. Does anyone have any other ideas please?

Thanks

I think I'd just agree to sell and tell the mother ship you never want to hear from her again when it's done tbh. Think I'd rather rent than put up with that.

Is there any realistic prospect of doing anything to up your earnings or clear debt before you reapply? Are you on the electoral role at your address?

I'm trying to do as many hours as possible at work as well as looking for a new job. Clearing the debt is proving difficult and yes I am on the electoral role at my address.

Why did you take out a loan when you already had a bad credit score and only had 24 months to build a good credit score? Credit scores can be improved from very weak to very good within 2 years. I know, I've done it.

I'd be really annoyed too if this had been done to me. What was the loan for?

Anyway, pay off all debts and reapply for the mortgage in 6 months.

If you sell would t you then have a ice amount for a deposit to buy elsewhere?

Presumably your mum wants her inheritance too? If you can't afford to or can't get lending to buy her out then obviously the house has to be sold. I think you're being unfair to your mum tbph.

If the house is sold then you'll walk away with half the value. You can then buy something cheaper that's more affordable or keep saving to add to the deposit whilst renting. You're not going to be left destitute, you'll have a big chunk of cash.

Who lives in the grandparents’m house at the moment?

I can see your mum’s side, as she’s probably really keen to get her share of the money before she gets too old to enjoy it. You’ve had 3 years.

BUT I don’t understand the “pay rent for 2 years then buy it or sell” idea, unless you’re currently living in the house and she’s not.

To be clear, are you living in the house you inherited?

When did you move in, did you live there with your nan (my condolences btw) or did you live elsewhere?

Am I right that your mum has been waiting 2 years for her inheritance hence the fallout?

Would it not be possible to sell the house and maybe use your proceeds as a deposit on a smaller or cheaper house elsewhere?

If this ends in a forced sale it’s likely a huge chunk will go on legal fees so probably best avoided.

If you can't buy your mum out, then you need to sell. You should have done this in 2023, if I understand your first post correctly. Why haven't you sold up and given your mum her money? She quite reasonably doesn't want her money tied up in your house!

I’d get it sold asap. Are you and your mum liable for capital gains tax when it sells? Because if you are, I’d do it before Labour chance the capital gains laws which they are likely to do.

Just sell the house, you can’t swing this right now, and it’s not fair on your mum to lock her out of her inheritance. Sell, and put the proceeds down as a deposit on another house when you have your credit record sorted.

Yes, I'd have a very decent deposit for another house but if the broker can't get me a mortgage for this house then I'm presuming he wouldn't be able to on another? The loan was because I was stuck for cash but agreed it was a very bad decision. I would love to buy my mum out in the morning and shes more than entitled to her inheritance. I currently live in the property, my mum owns her own home and owns another property in Ireland.

And you'd have a big chunk of money to pay rent on the open market until your credit is better. You can offer 6/12 months rent upfront to offset your poor credit. And you might have to move a bit further afield to where you can find a suitable property to rent, but it'll only be temporary.

It's simply not fair to tie your mums inheritance up like this.

Grow up, find a rental and pay your mum her due.

This is very unfair on your mum.

I currently live in the property, my mum owns her own home and owns another property in Ireland.

I suspect what you’re actually feeling is that your mum can easily afford to let you keeo the house, seeing as she already owns two?

In which case the OP needs to give her head a wobble...it's no one else's business to decide that they need someone's inheritance more than they do. I'm keen to know where the OP was living before they moved into this property and how they afforded to live there. Likewise, how did it get to the point of them moving in for two years once it was established that getting a mortgage was not possible? The house should have been sold then.

So you’re living there, paying way under the market rent, and you aren’t in a position to get a mortgage? You have to sell it. Your mum has been more than generous in terms of time. I suspect what you want is for your mum to give you her share of the house for free. She, not unreasonably, doesn’t want to do that. She has been extremely patient with you and would be well within her rights to go to court and force the sale. You have debt and jobs that can’t cover a mortgage, so you need to find something you can afford.

List your debts and we'll see what we can do to help.

To be fair to the OP, she owns half the house, hence why she only pays half rent.

But I agree with everything else you have said.

I think your mother is awful to be honest. If my daughter was in your position I would give her a lot longer to come up with the money to get a mortgage to buy her out (and would give her the property outright if I didn’t have money issues).

I don’t really understand why people have children they don’t want to cherish once they are adults.

My DH’s parents are the same, they received free childcare from his granny, their deposit paid for by his granny and granddad along with helping his parents do up their property. My DH however receives absolutely no help from his parents whatsoever.

His granny says she wished she’d never helped them as she never thought they wouldn’t help their own children.

Well at the end of the day the relationship suffers. If it wasn’t something as essential as housing/shelter I’d say give her what she wants and cut ties completely.

@EricHebbornInItaly it's a bit unfair to say the mother is awful when you've only heard one side of the story.

I think you need to get back to the drawing board with your mum.

Tell her you're going to sell if you can't get a mortgage in 6 months... if that what she really wants to do.
But also ask her if she's willing to accept beeing bought out over a longer period. Say a lump sum (loan) and then a decent amount every month...
My mum has done something similar with her nephew..It's over 20 years, should she pass before the time is up the payment will be going to myself and my sister. The most important thing about the arrangement is that my mum could retire a few years earlier while she still has plenty of energy to enjoy her life.
In fact it's given her a new lease of life.

I moved into the house during covid in 2020 as one Grandparent had passed away and the other was in a care home at the time. I moved into the house because my Grandfather was in a care home and it seemed pointless in paying rent when the house was empty. Prior to this I was in a rental property. No, I don't want my mum to just give me the house, but I wish she would give me more time. My Grandparents were like my parents and supported my mum throughout my childhood and it would be very upsetting for it to be sold knowing that is the last thing they would have wanted. My debts are credit cards I'd say that rack up to about £3000.

From your nephew's point of view, I would hope that "The most important thing about the arrangement" is that for every payment he makes to your mum, it is registered that he is now however much greater a % owner of that house...if it still shows that your mum retains the original % share despite the repayments, your nephew could find himself without the correct % ownership, should it be -for example- your mum needs to go into a care home and the her % of property is calculated as part of her assets.