From 24/7 Wall St. · David Beren · · 1m 20s
Co-op Board Decides 58-Year-Old's $900k Manhattan Apartment
A 58-year-old man's mother bought a Manhattan co-op in 1979 for $60,000. He inherited it but needs board approval to keep it.
In brief
A 58-year-old man's mother bought a Manhattan co-op in 1979 for $60,000. He inherited it but needs board approval to keep it. A 58-year-old man must get co-op board approval to keep his late mother's $900,000 Manhattan apartment despite inheriting it. Originally reported by 24/7 Wall St..
Inheritance and Co-op Board Power
A 58-year-old man inherited his mother's $900,000 Manhattan apartment but needs co-op board approval to keep it.
Mother's 1979 Purchase
His mother bought the Manhattan co-op in 1979 for $60,000, and it's now worth $900,000.
Financial Requirements
Co-op boards typically require debt-to-income ratios of 25% and cash reserves for two years of maintenance.
His Financial Situation
He earns $85,000 annually, has $300,000 saved, and needs $2,100 monthly maintenance.
25% Ratio Challenge
His income supports only $1,770 monthly maintenance at the 25% debt-to-income limit, short by $330.
Inherited Basis
Under IRS rules, inherited property gets a basis equal to its fair market value on death, resetting to $900,000.
Three Possible Outcomes
Approval allows him to live there with no mortgage; denial leads to estate sale; subletting is a temporary bridge.
Next Steps for Approval
He should hire a co-op attorney to review the lease and offer escrow for two years of maintenance from savings.
Here's the gist
A 58-year-old man must get co-op board approval to keep his late mother's $900,000 Manhattan apartment despite inheriting it.
