Selling a half share in a house

CLAPTON

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.

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

this is complete rubbish

why do you write this junk

can't you see the difference in losing benefits because you have capital in a house (i.e. NO NO NO cash) and selling a property for cash
cash you can spend; capital in a proprty you can't


and
cgt is NOT payable on an inherited property

now if the selling is delayed and there is a significant increase in the sale price from the probate price then cgt may be payable but in the currrent climate that is extremely unlikely (and if it happens then it's good isn't it because the OP makes more money)

Thrugelmir

pleasedelete wrote: »

Not sure why capital gains tax would be relevant.

Agreed. As cost for CGT purposes would be same as probate valuation.

Thrugelmir

Ames wrote: »

Mortgage isn't being paid I can't see that the lender will have a problem selling it straight away. Once probate comes through we'll have to start paying it,

Refuse to contribute. As this merely eroding your share of the possible realisation proceeds.

No payment of the mortgage is compounding the debt owed on a monthly basis currently.

Ames

Thanks guys. So a capital gain is the difference in the probate value and what it sells for? Not the difference in what I have now (ie, zero) and what the house sells for?

pleasedelete

I think you need to get agents and ask about the price when it's done. Putting in a new bathroom and kitchen is pointless if it needs rewiring for example.

Many buyers prefer a house they can do up themselves. They might not like your new kitchen and bathroom and it would put them off. You might spend thousands and not get it back.

My in laws did up there house to sell it. They even replaced cracked patio doors. Driving past 3 days after sale the new kitchen and the patio doors were in a skip on the road. They didn't get back what they paid as it didn't lift the price that much.

I have bought houses with a bath in the cupboard and the loo in the corner of the kitchen. Every house we have replaced bathrooms and kitchens- many only a couple of years old.

You say it's in a village? Have you looked on houseprices.co.uk for sold
Prices.

It may not get the top value but it may get as much as a lower value plus the cost of the kitchen and redecorating. Is he prepared to pay you the higher valuation for probate? If so why not sell to him now at that price?

Ames

Thrugelmir wrote: »

Refuse to contribute. As this merely eroding your share of the possible realisation proceeds. But wont that cause problems with the mortgage company? They've been fine so far, since everything's on hold, but once probate is granted they'll want paying surely?

No payment of the mortgage is compounding the debt owed on a monthly basis currently. Exactly, so we'll have to start paying once probate is granted?

When my sister called the interest was going to be in the pence each month so we haven't paid anything - probably a mistake but I've had a lot of expenses to do with sorting the paperwork and couldn't really afford the full mortgage, sister couldn't afford anything, and to be honest I've spent a few months just not being able to face up to all the paperwork and stuff. I've been indulging in grieving.

pleasedelete

So you and sister are paying to do up house for your dad to then buy? And is he going to pay you top valuation?

I would put it for sale as it is and see if you get any interest. If it hasn't sold by spring he can buy it when he sells his-or sell his now and buy yours. Or of it hasn't sold in a few months think about getting the work done. Or is there a village shop- could you put a card in saying it is for sale- no need to put a price even. You will see if anyone else local might be interested.

I'm sorry but it does sound as if your dad is trying to rip you off but I can't work out how.

Will you get the work done and then he will get a low valuation or offer a low price?

The spring thing is just an excuse. Depending on the area keeping it longer may mean you lose more as prices drop.

Ames

pleasedelete wrote: »

I think you need to get agents and ask about the price when it's done. We've had two valuations, they were vastly different but both added about 30k to the price for if the work was done. Putting in a new bathroom and kitchen is pointless if it needs rewiring for example. The council did some work to adapt the property, but mum died 3 days before it was finished. Dad went round to sign off on it, and they gave him some advisory note about the electrics but he didn't read it, he only mentioned it to me a couple of months later. I've told them both today that they need to find out what it is before doing the work but sister seems to think that they can rewire around a kitchen and wont need to rip it out. :wall: Dad's attitude is that it doesn't matter because he'll be buying it anyway, and then lays a guilt trip if I say anything about putting it on the market or whatever.

Many buyers prefer a house they can do up themselves. They might not like your new kitchen and bathroom and it would put them off. You might spend thousands and not get it back. I think it would add value, but I agree people will want to make it to their taste, which is why i just think that the cheapest should be put in - dad and sister will do all the work so the cost will be minimum.

My in laws did up there house to sell it. They even replaced cracked patio doors. Driving past 3 days after sale the new kitchen and the patio doors were in a skip on the road. They didn't get back what they paid as it didn't lift the price that much.

I have bought houses with a bath in the cupboard and the loo in the corner of the kitchen. Every house we have replaced bathrooms and kitchens- many only a couple of years old.

You say it's in a village? Have you looked on houseprices.co.uk for sold
Prices. I've been keeping an eye on rightmove, zoopla and findaproperty for the last few months, some stuff sells straight away some are up for ages, there doesn't seem to be any rhyme nor reason to it.

It may not get the top value but it may get as much as a lower value plus the cost of the kitchen and redecorating. Is he prepared to pay you the higher valuation for probate? If so why not sell to him now at that price? He's prepared to sell his house (which is worth a few tens of ks more), keep enough to do it up, then give us the rest, which should be substantially more than putting mum's on the market. But he wont put his up for sale till April. Even if he put it up now, unless mum's was on the market my benefits will stop anyway. He can't afford to buy it without selling his.

If I wasn't on benefits it wouldn't be a problem. But I can't afford to lose £650 every four weeks until my dad and sister arbitrarily decide it's the best time to sell, and that's if it sells straight away - if it takes two years I dread to think what state I'll be in. And that's without paying mum's mortgage.

If it goes on the market then I can keep my benefits for six months, longer if I can prove we're doing what we can to sell it.

Ames

pleasedelete wrote: »

So you and sister are paying to do up house for your dad to then buy? No - he's paying for the work, on the understanding that if we sell it to anyone else we reimburse him his costs. And is he going to pay you top valuation? It depends what his house sells for, it'll be around the top valuation or more.

I would put it for sale as it is and see if you get any interest. If it hasn't sold by spring he can buy it when he sells his That's what I'd do, but dad and sis say that we'd have to drop the price if it doesn't sell by then. And sister is dead set on dad having it.-or sell his now and buy yours. He wont sell his till April. Or of it hasn't sold in a few months think about getting the work done. Or is there a village shop- could you put a card in saying it is for sale- no need to put a price even. I need to prove I'm taking steps to sell it for the benefits people, otherwise they'll stop my money anyway. You will see if anyone else local might be interested. It's a village, if anyone was interested we'd have been told by now.

I'm sorry but it does sound as if your dad is trying to rip you off but I can't work out how. He's not, although I understand that it does sound like that.

Will you get the work done and then he will get a low valuation or offer a low price? No, the price he offers is dependent on what he sells his for, sister and I have agreed it's not going to him for less than the average of the mid point of the two valuations we've had, and that's after the cost of what he's spent.

The spring thing is just an excuse. Depending on the area keeping it longer may mean you lose more as prices drop.

..........................

ViolaLass

Could your dad buy your half of the property now and then your sister's half later? He's pretty much the only person who might be prepared to share a property with her (a stranger won't want to). Then they could do what they want to the house, which it sounds like they're doing any way.