Funding inheritance tax

J

J. Ball

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My Uncle passed away last summer, I am beneficiary of his estate comprised solely of his house. The inheritance tax will be in the region of €94,000 with solicitors fees in the region of €6,000.
I had thought an equity release mortgage on the property would easiest way to raise these funds, but my bank rejected this suggestion out of hand.
I already have a mortgage on my PPR and will be renting the inherited property out in order to service whatever loan I get to pay the tax.
I am not sure where to go next or what approach to take in order to raise this €100,000. I really want to hold onto the house as I lived there as a young child and it was my mother's family home.
What are my options?
 
I would approach a mortgage broker with a view to ascertaining the lie of the land with all lenders.

If this property is worth around €300k, I'm guessing that it will yield you around €1,250 a month?

How old are you and what's your income like?

Worst case scenario, I'd look at coming to an arrangement with Revenue whereby you pay them a lump sum (maybe €25k if you can raise it) and then pay then over a number of years. Interest at 8% would arise so that's an expensive route, but if you're wedded to the idea of keeping the property and no bank bites, you may have no choice.

As an aside, selling the property and paying off some or all of your own mortgage may offer an attractive rate of return (if you're not on a tracker) and may make your life easier.
 
I have a tracker on my PPR. VERY low mortgage currently. I'm in late 40s and income is low 40s.
 
You wouldn't repay that so all things being equal. I'd talk to a broker (try Dave Curry in Irish Mortgage Corporation - he posts here on occasion).

And use Revenue as an expensive fallback position.
 
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