Selling Half a House Help

goldbyron

I posted earlier this morning in regards to an inheritance tax question. I have one more burning question and difficulty. My partner and her sister are due to inherit a house from their mother. My partner wants to sell as soon as possible for financial and emotional reasons. Her sister wants to rent for a couple of years before selling. If her sister refuses to sell how can my partner sell her half of the estate? Would this need to go to court unless of course her sister buys her out (which she can’t afford). I have been in a similar situation with an ex partner and it was the most stressful year of my life so I dread if this needs to go down a legal route. Was hoping it may be a different matter if it involves wills and inheritance? The house is also noone’s main residence once their mother passes away so no one can claim to be made homeless. Any suggestions?

mikey72

I have read both these posts, and can't help specifically, but I (think) equally the property could not be rented out without joint agreement.

Catti

Who is the executor of the estate and what does the Will specify? In essence, if no agreement is reached, and no-one has been given overall control, it will be a matter of seeking an Order for Sale which will doubtless be granted so the sister objecting to it needs to be warned she may get a costs Order against her!

mlz1413

If the sister who wishes to rent can get a BTL mortgage for 50% of the property value then she can buy your partner out. Most BTL mortgages need the rental to be 125% of the monthly mortgage payment and no more than 75% LTV (loan to value of house).

As the sister would own 100% of the house with a 50% mortgage I wouldn't write this option off without making some enquires.

localhero

If your partner doesn't want to rent out her share of the property then she doesn't have to, irrespective of who the executor(s) are.

If the sister wants to do that then she will simply have to find the 50% share to buy out your partner - otherwise the house will have to be sold.

Richard_Webster

If it went to court it probably would have to be sold, but the sister might argue that in the long run it was better to keep it for a time because prices might improve.

Problem is you cant just say to sister "You must sell, so sign here...." She says "I'm not going to sign...." You say "Well you've got to. it's the law...." (Assuming it is, that's not cut and dried.) "She says she's not going to...."

It becomes a game of bluff. Will she think you are serious about going to court and spending a lot of money? Unless she does she's not likely to sign.

So you can try to negotiate her buying out your 50% share. She will no doubt say the place is worth a lot less than you think and that's why she wants to rent it out for now. her argument will be that if you want her to buy you out she will do so but will only pay 50% of a lot less than you were expecting....

So there are no magic answers.

IT_nerd

Refuse to rent it out... No one will sit on a depreciating asset for too long.
It will be a game of who can last the longest.

simpywimpy

Are they not on good enough terms to discuss it amicably?

mlz1413

[quote=Richard_Webster;15193319.So_you_can_try_to_negotiate_her_buying_out_your_50%_share._She_will_[B]no doubt say the place is worth a lot less than you think [/b]and that's why she wants to rent it out for now. her argument will be that if you want her to buy you out she will do so but will only pay 50% of a lot less than you were expecting....

So there are no magic answers.[/quote] (note want to bold the bit about saying place is worth less - but germlins must be at work!)

If the sister values it as a lot less than you believe it is 'worth' then could you and your partner buy the sister out? That way your partner owns 100% and can sell it on without having to make/persude her sister to think differently and hopefully avoid a family feud.