Property

Ken68 · 15 June 2017 at 8:36AM

My brother died recently and his main property was left in a bit of a state. It will probably have to be sold "as is" without electric certificate and in need of major repairs. Top value with house in good order would be £250k. It has enough land for another house to be built and therefore of interest to developers.
I am one of the main beneficiaries ( not an executor) and concerned that the house will be sold off 'under the counter'.
There is history of another of his properties not being advertised and sold off at half top price.
Advice needed please, early days, tempted to not rock the boat but can see £100k, maybe £200k slipping away.
Thanks for letting me share.

Keep_pedalling · 15 June 2017 at 9:18AM

Who is the executor?

Ken68 · 15 June 2017 at 9:44AM

Another family member (does it matter !!), who advised near dementia brother on the other house being sold off at (as I see it) half price £125k.
No advertising of the property and using a single preferred estate agent.
This was two years ago and the property recently changed hands (after renovation.... at £300k.)
The same estate agent is being used to sell off all remaining properties.

Keep_pedalling · 15 June 2017 at 10:16AM

if the other sale was carried out so that care fees could be paid then it does not seem unreasonable to go for a quick sale. The fact that it has been sold for more than double the price 2 years later after renovation does not mean it was sold at half its value, as you have no idea what the cost of those renovations were, and frankly most people don't want to buy run down properties, so others often get them for a bargain price.

You could always tell the executor that you would like to take your share of the property and buy out the other beneficiaries. That way you should be given a valuation before it is sold.

Ken68 · 15 June 2017 at 11:05AM

Thanks KP....the estate will probably be about £1m. The other house was in a prime location and renovations would have been £20 to £50k .
The four main beneficiaries are late 70's and early/late 80's.and not in the best health for any hassle.
At the moment all amicable so I will probably tread water and see what happens.

Mojisola · 15 June 2017 at 11:13AM

Ken68 wrote: »

Another family member (does it matter !!)

It could have if the executor was a solicitor because then you'd have a complaints procedure to follow.

Keep_pedalling · 15 June 2017 at 11:19AM

Ken68 wrote: »

Thanks KP....the estate will probably be about £1m. The other house was in a prime location and renovations would have been £20 to £50k .
The four main beneficiaries are late 70's and early/late 80's.and not in the best health for any hassle.
At the moment all amicable so I will probably tread water and see what happens.

Well into IHT territory then, so a proper valuation will be required. I would suggest to the executor that they get a RICS surveyor to value it not an estate agent, as a professional valuation is less likely to receive a challenge from HMRC.

Ken68 · 15 June 2017 at 11:41AM

Thanks both.
The need for a RICS surveyor valuation would be just the opening I need to talk to the executor about selling through the most agents.
Do Estate Agents charge if they don't make the final sale ?

Malthusian · 15 June 2017 at 11:42AM

Ken68 wrote: »

The other house was in a prime location and renovations would have been £20 to £50k .

Plus two years' worth of labour. Plus a risk premium for the possibility that there were more issues lurking under the floorboards and when the buyer tried to renovate it collapsed around their ears. And a quick sale was required by the seller so demand was limited. I can't see anything suspicious in what you've posted. If it was that much of a bargain you should have offered to buy it for £150k, hired some builders and made a tidy profit.

If it was availability of funds that was stopping you then that's no problem this time as if the executor tries to sell it for £125k you can offer to take the property in lieu of £150k worth of your inheritance. The beneficiaries get a larger share of the other assets, you get a house you know you can flip for a quick profit, everybody wins.

Malthusian · 15 June 2017 at 11:48AM

Ken68 wrote: »

Do Estate Agents charge if they don't make the final sale ?

Generally estate agents work on a percentage of the final sale cost so you wouldn't pay them if they didn't find the buyer. If you enter into a sole agency agreement the percentage is lower.

As the market for dilapidated houses is limited, you can hire 100 estate agents but they will all be chasing the same few buyers, so they might be reluctant to operate on a multiple agency basis.

Ken68 · 15 June 2017 at 12:13PM

Thanks Malth...also the house is in a small town so more chance of collusion.
The other house was sold before I and the rest of the family knew it was available. Sold to a builder. Brother was rambling towards the end so have to discount his comments that he thought he had been done over.

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