Selling a House under Probate - solving disagreements?

goldbyron

Hi

I am writing on behalf of my OH who was left her mothers house in Harrogate (a village on the outskirts of the town itself) alongside her sister. The house is held in the executors name (trying to avoid CGT) and her sister has now agreed to sell (she wanted to rent until prices rose). They have received three valuations (425, 500, 585). My OH wanted to go with 500 to try and attract more buyers as below stamp duty threshold and seems more likely to sell having looked at rightmove. Her sister is a little greedy and only seems to see the figures. Naturally she wants to go with 585 (with Savills) and will not accept below 500.

Problem is my OH needs to sell this house by the end of the year when the estate monies will have run dry and can't afford to take on the outstanding 100k mortgage. Additionally she would need to pay additional IHT installments which is only affordable if she sells the property. Her sister (who lives in Jersey and avoids the IHT and CGT) meanwhile would be happy to rent this property and hold out for a high price.

My OH has her own mortgage (100%) and basically probably won't even get a mortgage for the house - not that she can afford it anyway. Legally where does she stand if her sister refuses to accept a lower asking price (in a falling market) and they don't sell. I feel her sisters greed could end in them having more financial difficulties later on which for my OH (with mortgage, living in mainland UK and with a possible threat of redundancy like anyone) would be more disasatrous.

Any one know the legalities here and what to do?

Thanks

MX5huggy

I don't know, but what happens when the estate stops paying the Mortgage? does the house get repossed and sold off very cheeply?

poppysarah

Your OH should get some legal advice - but perhaps getting the sister to sign something saying "delays in selling with make her liable for the subsequent loss from waiting in a falling market" - or to make the sister aware the mortgage needs paying... or to get her to buy her half off her at the full asking price she wants...

TonyMMM

Who is the executor of the will ?

goldbyron

the executor is a solicitor and her sisters ex partner....

Yes if the estate runs out of money it falls to my OH and sister and it could get repossesed posing credit problems in future.

mlz1413

I've no idea of legal status on your situation but some thoughts would be: Could the sister in jersey buy out your OH's share so she can rent it out and wait as long as she wishes?

If not I'd set out a time frame, say 2 months at each price on a reducing scale, then maybe auction property as a last resort.

It does sound as though your OH's sister is being greedy and at the expense of her sister so if an agreement cannot be gained legal proceedings will probably be the only way forward.

MX5huggy

That's the argument with the sister then you can't just have it there sitting not selling because it will just cost a fortune.

goldbyron

Absolutely - I have suggested the price is reviewed every 6-8 weeks and reduced if necessary. I wish the estate agents wouldn't led people on to think the house is worth more than it is. If they had been realistic in the first place we wouldn't be in this situation.

ILW

goldbyron wrote: »

Absolutely - I have suggested the price is reviewed every 6-8 weeks and reduced if necessary. I wish the estate agents wouldn't led people on to think the house is worth more than it is. If they had been realistic in the first place we wouldn't be in this situation.

Why not get a proper surveyors valuation? It will cost a little but will be independent.

goldbyron

Thats a possibility - thanks. I may suggest Savill come out again as this valuation was in early December 2008.

PasturesNew

RICS will give you a proper valuation - and you can come up with a set of questions to ask him, along with the OH's sister's input. Then record the conversation on a digital recorder and let her hear what he says about the valuation and marketplace. Or, better/also, get him on the phone to her while he's there.

Also, have you looked at prices sold of similar houses? What the competition is? Show the sister the latest Nationwide House Price Index showing houses fell 2% last month (point out to her that 2% is £10k/month). Also you might like to emphasise the difference between £500k and £501k for stamp duty. And information about bonuses being low and millionaires going bankrupt (see the situation in Sandbanks). Dig out some local property market reports.

Or, easier, just see if she can buy out your OH for £225-250k.

Is the sister a Jersey citizen? Or just over there on some other method/visa? She might not quite understand her position, so make sure you know that's 100% correct.