Inheritance and buying beneficiaries share

Posted on 30 April 2010 by julie powell

I am looking to buy my brother out of his share of an inherited property. The property has no mortgage on it, was left solely to myself and my brother. I have no mortgage, what type of mortgage do I need to obtain, ie first time buyer, capital raising?


The type of mortgage you require will depend on a lot of factors and also how different Lenders view your current circumstances.

If the title of the property has been transferred to the joint names of you and your brother the majority of Lenders will view you as already owning the property and will offer you a product from their remortgage range. With these you normally get an incentive of a free valuation and a free legal service. However, the free legal service does not cover changing the title of the property and you will need to cover the additional cost of this yourself. There are other Lenders who will still regard the transaction as a remortgage, but because you don't have a mortgage on it at the moment will not offer the incentives and still other Lenders who will view the transaction as a purchase.

The type of mortgage you qualify for will also depend on what your intentions are with regard to the property. Are you going to live in it, keep it as a second home or rent it out?

It can all get very confusing and I recommend that you speak to an independent mortgage broker about your situation. Having completed a full factfind about your situation and attitude towards risk they will then be able to recommend the best type of mortgage and product for you.


Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.

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