Buying a house I already half own

Lushlady_2

Hi

Situation is I live in a property that I half inherited from my father who died suddenly, I lived with him at the time so have just stayed on in the house. My brother owns the other half of the house. We sorted all of the money side of my dads affairs but left the house to be sorted at a later date.

Now want to get the house side of things sorted out. Its quite an old property so although I am in no rush there is a certain amount of work that would need to be done eventually.

Have not owned property before so all this is new to me. I have arranged for 2 valuations next week but what do I need to take into account when coming to an agreement over price with my brother?

- houses hardly ever go for the advertised price so I don't think I should be expected to pay the valuation price
- if the house went up for sale it would cost a certain amount, me buying my brother out is surely going to save money so should this be figured in when we are discussing prices?

Anything else that I should be considering?

Please be nice, this is all new and a bit scary for me :eek:

CLAPTON

assuming your brother doesn't live there then he will be liable for capital gains tax on any gain less the cgt allowance of 10,100.

terryw

I assume that you are paying for the valuations, and not merely asking an estate agent for a figure at which it might sell. Some EAs will give an inflated figure which bears no relation to reality just to get a house on their books.

Also, do a bit of spadework yourself and get the particulars of similar houses on the market, and check how much similar houses have sold for in recent months.

At the end of it all, you want to arrive at a figure which is both fair and quite acceptable to you and your brother.

VIGILANT22

Lushlady wrote: »

Hi

Do you have cash to buy him out or are you remortgaging?

Fire_Fox

You can value the property yourself by researching land registry sold prices for your street and area:
www.houseprices.co.uk

Annisele

Assuming your brother hasn't been living in the property, then it would be fair for him to receive rent for "his half" for the time you've lived there since your father's death.