With new schemes such as the Help to Buy ISA and easier access to mortgages with smaller deposits, the government and banks are trying to help create a favourable market for first time buyers who have been dubbed “Generation Rent.” Many around the UK rely on these preferential rates to become homeowners and it is important to understand how inheriting property can affect someone’s status if they decide to apply for a first-time buyer scheme.
Do I Keep An Inherited Property Or Sell It?
While inheriting property may seem like an opportunity to take a step onto the property ladder with a new house, it is not always feasible to keep the property. Whether you want your first home to be in a different area of the country, or you have to sell the property due to an agreement made between the properties various beneficiaries, there are many reasons why you may opt to sell this house. It’s also important to look at what happens when you inherit a house with a mortgage.
Typically, when someone applies for a first-time buyer scheme with a bank, one of the first questions they are asked is if they have ever owned a property before. While a beneficiary may believe they have not owned their own house before, the moment the deeds to their inheritance has been passed to them, they legally become a property owner.
One way this may not apply to a beneficiary is if the estate sold the property. In this scenario, they do not inherit any property, only the money they are due from the sale.
While a beneficiary may no longer be applicable to the benefits presented to first-time buyers, their inheritance may provide them the opportunity to buy their own house, even if they do not want to move into the currently owned property.
What About Selling The Property Myself?
Selling the property will give the prospective homeowner access to the funds that will help them secure their next property, and if they are willing to wait until the property sale is fully completed they can look for homes as a cash buyer, pretty much avoiding the often-fickle property chain.
However, time can often be of the essence and a beneficiary may not be able to wait until the property is placed upon the market, viewings are organised and potential buyers make their formal offers. Throughout the UK, the average property can take a minimum of 8-10 weeks before the keys are exchanged and for some who have unexpectedly inherited a property, this can be too long. An alternative solution could be to contact us here at Olivia Rose Estates.
Inheriting a property can remove your status as a first-time buyer, however, it is not going to prevent anyone from buying their dream house. The preferential rates offered are there to help those who are struggling and with the money from the sale of the inherited property, beneficiaries may find themselves in a better position than if they used any of the first-time buyer services.
Dealing with the loss of a loved one can be extremely distressing. If you have suffered a bereavement and need to sell an inherited property, we are here to help. You will not have the financial burden of estate agents and legal fees, nor the inconvenience of property viewings. There will be no worries of the house sale falling through due to a broken chain or a mortgage not being approved at the last minute. We will deal with your situation sympathetically and can offer you a guaranteed cash offer on your property.
