Inheritance Problem

Dazza744 · 14 March 2017 at 4:10AM

Hi,I have lived in the family home with mam and dad for 46 years,caring for both full-time until both passed away mam 5 years ago,dad in June. No wills were made so me and sister got 50% of the estate. Sister left home 32 years ago at 18. Now sister wants either the market value of her half of the house or for us to sell-up of which she has already had estate agents around and is going to list it. I've offered her various sums of money but she won't take a penny less than the market value. Any ideas on what I could do apart from drag my heels ,which I'm naturally going to do!

FBaby · 14 March 2017 at 6:42AM

Well you can make it as difficult to her as you can want to, making sure the place looks as unattractive as possible, cancelling visits, so that she has no choice but to take you to court with the cost that it involves and sell the house at a lower value if you make a point of not looking after it.

Alternatively, you can point to her of your intentions to be difficult resulting in a costly court battle for her and restart negotiation. Firstly, why are you offering her less than market value? Because you think you deserve a bigger part of the pot for looking after your parents, even though they made the choice not to have a will, or because you can only afford so much? If the latter, than show her the evidence of it and agree on a reasonable price, or maybe she can still retain some interest in the property for the difference.

getmore4less · 14 March 2017 at 6:48AM

How dependent on your parents were you?

Pixie5740 · 14 March 2017 at 8:11AM

If you drag your heels about this and your sister has to go to court to force the sale of the property then the court costs can be awarded to you. That money can be deducted from your share of the sales proceeds meaning you end up with less than half the value of the property.

My suggestion as to what you can do is to cooperate with your sister. Either offer her a fair price for her share of the property so you can buy her out, or put the place on the market.

AnotherJoe · 14 March 2017 at 8:24AM

Another POV - Yes you looked after parents, but (I presume) you paid no rent and your parents, unfortunate as this may be, chose not to recognize your care by dividing the house in unequal shares.

Could you afford to get a mortgage for the value of half of the house?

Only other option is, you go legal and claim much more of the value since your care left you in a vulnerable position - didnt get a job and so cant afford much of a mortgage, etc. There might be some prospect of you winning but the legal expenses will detract from that. Perhaps see a solicitor and see what they advise.

Dazza744 · 14 March 2017 at 8:29AM

Firstly,I asked what her cash settlement would be and she replied market value,I was expecting slightly lower since it is family after all,and not because of thinking I was entitled to a bigger pot.We have been a very close knit family until this time as well,i have just started a new job and have offered her upto 75% lump sum and the rest within 2 years(I'd be able to get a personal loan by then) but she flatly refused. I really don't want any conflict but I feel as though it is on its way. Several aunts and uncles have also stated to say the house wasn't to be sold whilst one of us was living there but this is only words,both my parents would be horrified at her selling the house whilst I was still living there,as it seems greed has got the better or her.

I wasn't very dependent on my parents at all,sharing all bills and expenses but obviously my rent/lodging was less than if I had my own place.

I've looked into getting a secured loan on my half of the house but the cheapest I'd be entitled too is 40%apr which would cripple me.

AnotherJoe · 14 March 2017 at 8:43AM

Dazza744 wrote: »

Firstly,I asked what her cash settlement would be and she replied market value,I was expecting slightly lower since it is family after all,and not because of thinking I was entitled to a bigger pot.

That makes no sense, on those grounds why wouldn't she get a bigger share, why is it you that gets it? I appreciate you put in the care but your parents unfortunately didnt think of that and if you say that doenst count, on what grounds do you think you shoudl get it?

In that respect, the only "below market value" that would make sense is one that removed the costs of selling -EA fees and the like- if you stayed there.

kiddy_guy · 14 March 2017 at 8:45AM

Whilst your sister could be slightly more friendly with her approach, put yourself in her shoes.

She doesn't need the property, she's gaining no rent or benefit from it and she'd like her share. You're trying to get a better share on the value so that you can afford to purchase it. Whilst it may seem harsh to say, that's not her problem.

Not meaning to sound hard, but there's 2 sides here.

TheGardener · 14 March 2017 at 8:48AM

1st Q: Who has the letters of administration to act as the executor of the estate?
2nd Q. Has the probate process been carried out
3rd Q. Has the value of the estate been calculated (inc the house) and has any tax been calculated and paid if due?

If you and your sister are joint executors then she can not sell it without your agreement. However, she is entitled to 50% and that is not greedy but reasonable. Start negotiating. from your post it seems to suggest you are not eligible for a mortgage?

Pixie5740 · 14 March 2017 at 8:50AM

What kind of secured loan were you looking at that had an APR of 40%? Surely the best type of secured loan for this kind of transaction would be a mortgage where I would expect the APR to be at least 10 times lower. Especially since you would only require a 50% LTV mortgage.

I can see your sister's point of view. She just wants this done and dusted. If she accepts 75% from you now (where would that money be coming from) and transfers her share of the property to you then what's to stop you not paying the remainder within 2 years?

I don't think your sister is being greedy. The house was left to you equally, if your parents wanted some other arrangement then they should have written wills but they didn't. Why should your sister face a Capital Gains Tax bill further down the line just so you can continue having cheap accommodation whilst she presumably has to pay more to live elsewhere?

dimbo61 · 14 March 2017 at 8:52AM

I take it that you are 46 years old and your sister 50.
She left home at 18 which is quite young and made her own way in life.
50% of the family home after costs could provide her with a huge lump sum to help her secure her future.
She like you will not get a state pension till you reach 68.
She more than likely has a Mortgage on her home to pay off.
Can you buy a smaller property with your half ? Maybe with a small Mortgage ?
Time to move on with your life

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Inheritance Problem

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