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've read all your posts OP, but there is still no mention of what your partner is doing in all this. Was there income taken into consideration by the broker?

Op, you need a £140k mortgage on a house value of £280k and both of you work full time? Is that right? So at least 40k joint income??

What is the situation with debts because it feels odd that you can't get a mortgage with those stats, unless you have defaults, ccjs registered against you.

You were incredibly fortunate to be able to live in a house rent free for a couple of years...if you didn't save or maximise that is on you and your partner.

It would be a shame to lose the family house because of poor credit but I don’t think your mum should bail you out as I would be questioning your financial skills. Perhaps you need to change before you take on a mortgage?

Contact London and Country mortgages

They are free and have access to the whole of the mortgage lenders in the U.K. (well 99.9)

Why can’t you tell your mother you will pay her £70,000 as that is all you owe due to the house in Ireland

@Livinghappy I don’t think she needs a £140,000 mortgage as she’s already signed over her 50% of the Irish house to her Mum, which is worth a fair amount.

A poster upthread calculated that she now owes her Mum about £80-90,000 after applying the value of the Irish house.

Even though the OP hasn’t handled this particularly well, it does sound as if her Mum is trying to get more of the inheritance than she’s entitled to, which is rather shocking. Most parents want the best for their children.

I agree with your mum and would also be pissed off it hadn't been sold.

@Tryandtryagain02 Please take @TemuSpecialBuy’s advice, it’s worth pursuing. And talk to L&C about a mortgage - they’re really helpful. Your mother sounds like an absolute scammer.

I love all the people who just read the first post and make a reply. I mean i kind of understand why they have written their replies due to the constant drip feeding of information which if it was all in the first post would have yielded different replies.

Forget the house in Ireland, you signed it over, it's not yours and you signed it over. Your solicitor would have explained the cons of signing it over when you signed it over and you took that and signed.

You have been to a broker who specialises in getting adverse credit mortgages and cant afford to buy your mum out as you cant get a mortgage and have an agreement in place with your mum that can force the sale.

You need to sell up.

Im not getting into the emotion of who has done or should have done what or what they should do morally as thats pointless. Facts are facts, you cant afford this house.

Long and the short of it is she can't afford to buy the house so it needs to be sold.

@Thatsallfolkshaha I've had a long day so not sure if you are agreeing with me, summarising my post arguing with me here

Summarising and agreeing.

@fromtheshires Do you think that the OP should make her Mum a lower offer though- I.e. subtract the value of the Irish house from £140,000? First see whether she can get a mortgage for this lower amount, of course.

Otherwise, her Mum will definitely end up with far more of the estate than the Grandparents intended. She sounds unscrupulous!

Where will the money end up eventually though... It seems stupid to fight it out, break the relationship and waste money on solicitors when OP will eventually get the money when her mum dies.

What I think is the OP should have just sucked up the 40% IHT as 60% of something is still better than 100% of nothing and Im speaking from experience here.

My DH owned half a house with MIL. When she died DH signed his half over to the step FIL who inherited MIL's half on the premise he would get 100% of it upon step FIL death. You can guess what happened next but if you have no imagination, FIL sold up and fucked off never to be heard from again. This is a man who was in husband's life for so many years he was called dad.

You are actually being unreasonable towards your mother. If you aren’t able to buy her out then you must sell up. You can’t sit on her inheritance and not expect her to want to have it. You sound like you are really quite blinded to what’s fair here.

@Thatsallfolkshaha Well, you could ask why her Mum is so determined to have her share of the English house if it’ll all end up in the OP’s hands eventually?

She wants to live in the Irish house so why not let her DD live in the English one? She could even sign over her half share to her DD!

Because it's her mother's inheritance for now and she's entitled to it and spend it how she sees it. Would you like it if a family member was stopping you from having such a large sum of money?

@fromtheshires Awful.

Yes, I wouldn’t be surprised if the OP isn’t left anything by her Mum, or it’ll end up in someone else’s hands.

@Thatsallfolkshaha No, but then if an estate was equally divided between myself and my daughter, I wouldn’t persuade my daughter to sign over her 50% of one house and then expect 50% of the other one. I’d subtract the difference.

The Mum is trying to get tens of thousands more from the estate than she’s entitled to. It’s quite unpleasant.

Of course the OP needs to buy her Mum out, but she doesn’t owe her £140,000.

I don’t think you pay capital gains tax on your sole property, only if you have more than one (property), im sure.