Selling a half share in a house

Ames

Hi,

I'm about to inherit a house with my sister. How likely am I to find someone to buy my half, and how big a hit would I take on the price compared to use jointly selling the whole house?

Thanks.

Thrugelmir

Very unlikely anybody would be interested. Too many complications.

ViolaLass

Can your sister buy your half?

G_M

Who on earth is going to buy half a house with a stranger? Why would they?

To live there? With your sister?

As a BTL investment? Shared with an unknown person?

As a capital investment? With property prices likely to fall not rise? and with th complication of being unable to sell unless your sister also agrees to sell?

Mad!

Ames

She doesn't want to buy my half, she wants to sell. But her and dad are saying it's too late in the year to put it on the market now, it needs to be done in spring to get the best price. However, I'm on means tested benefits and they will be stopped when the house becomes ours unless it's on the market. I can't put it on the market without her permission, so all I can do is put my half up for sale. I don't want to do that, but I can't afford to live without my means tested benefits for eight months or more.

Ames

I know it's mad, but I can't really see anything else I can do.

No-one is living there, my sister has her own place and job 250 miles away from where the house is.

Thrugelmir

Ames wrote: »

But her and dad are saying it's too late in the year to put it on the market now, it needs to be done in spring to get the best price.

Cash is cash. As the property is empty what if gets vandalised in the interim period.

holly_hobby

If losing your means tested benefits is the issue - then selling your half wont make any difference, as instead of the capital being in the bricks & mortar (and you say affecting the level of benefits recd), the capital will be in the bank and still affect any means testing criteria.

What about signing your share over to her, and maybe coming to a personal agreement on how any monies will be split upon its sale next spring. I should also say at this point, that you will still have a duty to report any capital recd to the benefits office (if you are still in receipt of means tested benefits), even if the capital recd from the property is not kept in your own bank account. But hopefully the capital recd may empower you to come off benefits all together i.e if you used it to start your own business, giving you independence from the state.

You should also note that there will be a CGT liability (net of annual CGT allowance) on any profit achieved and recd from the property sale.

Hope this helps

Holly

Ames

holly_hobby wrote: »

If losing your means tested benefits is the issue - then selling your half wont make any difference, as instead of the capital being in the bricks & mortar (and you say affecting the level of benefits recd), the capital will be in the bank and still affect any means testing criteria. But I'd have the money to live off - I can't eat bricks and mortar when my benefits are stopped due to me having notional capital.

What about signing your share over to her, and maybe coming to a personal agreement on how any monies will be split upon its sale next spring. I should also say at this point, that you will still have a duty to report any capital recd to the benefits office (if you are still in receipt of means tested benefits), even if the capital recd from the property is not kept in your own bank account. Because that would be fraud, the DWP would still class me as having the money/house. I am planning to report it to the JC+ as soon as probate comes through and I know the exact situation. In fact, I've been waiting for about two months for DIAL to get back to me about them dealing with the JC+ on my behalf about it all.

You will also have a CGT liability (net of annual CGT allowance) on any profit achieved and recd on its sale. I didn't realise that, I thought as it was an inheritance with no IHT to pay it wouldn't count for CGT. Do you know how much that is? Just so I can plan ahead.

Hope this helps

Holly

It's unlikey to get vandalised as it's in a quiet village and dad lives two minutes away so he'll be keeping an eye on it as will the neighbours.

Thanks for all the help people, looks like I'll just have to tighten my belt a lot.

globalds

Just stick the property on the market now , for whatever price you think it will be in the spring rise...Then if it goes now you and your sister won't feel you have lost any profit and it will be on the market so your benefits will still be given to you.

Yorkie1

I think your parents are rather out of touch with the market - the spring bump didn't really happen this year and I wouldn't wait 8 months to see whether it happens a little bit next year. Get on with the decisions now rather than delaying.