How do I get a mortgage for an inherited property?
What do I need to have in place?
How can you help me?
As one of London’s leading Mortgage Advisers we are often contacted by clients asking for a Mortgage for an inherited property
People can inherit properties in many different ways: it could be a lifetime gift, where for example the parents are gifting a property whilst they are still alive; or it could be after death of a family member when probate has taken place; either way we have experience in dealing with the situation.
The first thing we need to understand is what are you going to do with the inherited property? Will it be used as your main residence or will you be looking to mortgage the property for buy to let purposes? Once this route has been determined we can advise you on how the two processes work.
One of the biggest obstacles for obtaining finance on an inherited property is strict rules that lenders apply. The most common one is you must have been an owner for at least six to twelve months before capital may be released. If you are an avid follower of your newswires you will know that we pride ourselves on vast range of mortgages we have on offer and are able to provide solutions to remortgage inherited properties without having to wait. Let’s be honest it is common sense stuff but you would be surprised at some of the lenders criteria is when it comes to inherited properties and mortgages.
General rules around getting a Mortgage for an inherited property
Probate must have taken place and you have become legal owner of the property.
All beneficiaries and owners of the property must be on the mortgage (unless the intention is to acquire their share). We have lenders that we enable up 4 applicants.
If it is a buy to let mortgage then the estimated rental income needs to cover the mortgage by 125%. So four example if the mortgage is £1,000 a month the rental income will need to be £1,250.
The property must have a working kitchen and bathroom and should be ready for a tenant to move into.
Applicants must be able to afford the mortgage. The better the credit rating the better the rate.
For more information on Mortgages for an inherited property please call us on T: 020 7993 2044 or alternatively complete the online Contact form on this website.
Author: Payam Azadi
Payam Azadi is a partner at Niche Advice who are whole of the market Independent Mortgage Brokers. His role is very much focused on Property financing both on residential and commercial lines.