Hi, a bit complicated this one but bear with me.
18 months ago my sibling & their family moved in with my elderly parents under the agreement that they would buy the house from my parents for €350k. Dad told my sibling that that he had spoke with his solicitor & local estate and that all would be fine.
Our dad was in very poor health & was quite keen for one of kids to move in & it also suited my sibling. So a win-win around & the whole family were delighted with the news.
It was only after the move that my sibling enquired about taking out a mortgage & was informed by 2 providers that it would not be possible to lend as our parents had no plan on moving out. Both lenders would not issue a mortgage under such arrangement and each stated any legal advice that our father obtained was questionable.
My sibling was frustrated at the time but didn’t pursue it further as dad was greatly ill, & shortly afterwards passed away.
My sibling has been in limbo for the past 12 months and decided to get the house valued. The value came in @ €450k & they have since told me that they will never be in a position to afford anything over the agreed €350k mark as the house requires major refurbishing.
My sibling is now quite stressed and doesn’t know not what to do next. They never sold their own home but moving back isn’t really an option as the kids have all changed schools.
Unfortunately, if they were to move out there are no other properties available in the area within their budget.
Although not agreed i believe that my other siblings & our mother would be happy sticking to the original agreement if €350k.
Any suggestions on how best to deal with this situation?
18 months ago my sibling & their family moved in with my elderly parents under the agreement that they would buy the house from my parents for €350k. Dad told my sibling that that he had spoke with his solicitor & local estate and that all would be fine.
Our dad was in very poor health & was quite keen for one of kids to move in & it also suited my sibling. So a win-win around & the whole family were delighted with the news.
It was only after the move that my sibling enquired about taking out a mortgage & was informed by 2 providers that it would not be possible to lend as our parents had no plan on moving out. Both lenders would not issue a mortgage under such arrangement and each stated any legal advice that our father obtained was questionable.
My sibling was frustrated at the time but didn’t pursue it further as dad was greatly ill, & shortly afterwards passed away.
My sibling has been in limbo for the past 12 months and decided to get the house valued. The value came in @ €450k & they have since told me that they will never be in a position to afford anything over the agreed €350k mark as the house requires major refurbishing.
My sibling is now quite stressed and doesn’t know not what to do next. They never sold their own home but moving back isn’t really an option as the kids have all changed schools.
Unfortunately, if they were to move out there are no other properties available in the area within their budget.
Although not agreed i believe that my other siblings & our mother would be happy sticking to the original agreement if €350k.
Any suggestions on how best to deal with this situation?