Selling a half share in a house

pleasedelete

I can't see why if you father is buying it it needs any renovations. He can do those when he is the owner.

I think you should get in 3 more estate agents to value for sale. Ask also for a price if modernised by amateurs. Ask about the current market. Ask about changes in prices over the past year.

Your father should also be getting his valued and doing the same.

holly_hobby

pleasedelete wrote: »

Not sure why capital gains tax would be relevant.

CGT would be relevant if when the property is eventually sold, it is sold for a higher value than probate give it on the date of the deceased's death.

(To also answer OP question - the liability to CGT is irrespective of your personal tax status).

The gain may not be huge (and may well be absorbed by personal annual CGT allowance) but its important for the OP to have all relevant facts to their query, and I hope illustrates why CGT has been discussed for the OP

HMRC ref material that may be helpful - http://www.hmrc.gov.uk/inheritancetax/tax-when-you-inherit.htm

Holly

Doshwaster

womble12345 wrote: »

I think the spring bounce idea is rubbish,properties wont be worth more next spring. What is true is that there willbe a few more buyers around then so the liklihood of sale is higher then but I dont thinkyou wiill be able to get more money then. Thats just my experience leanred from this year.

Agreed. Who knows what the housing market will be like next Spring. If interest rates start going up then then you could well find fewer buyers and falling prices

OP should put it on the market now. Advertise it as a "development opportunity", sell it quickly and bank the money.

somethingcorporate

So when you are talking about getting top value for a property you don't actually mean for your mothers do you since your father is buying it?

You mean for your fathers, which really is none of your problem.

I'd get it on the market is quickly as you can. Any potential "gain" you will make will be (partially or totally) offset by the increased mortgage costs you face while you sell and any renovations are not likely to add more than they cost.

holly_hobby

pleasedelete wrote: »

Are you paying inheritance tax? Is tne house the only issue or is their cash?

Estate is only exposed to IHT if its net value exceeds nil rate threshold of £325k (2011/2012).

Hope this helps

Holly

hazyjo

Unless you're going to do a complete renovation on the whole house, I definitely wouldn't bother with a new kitchen or bathroom. You're probably more likely to get a better price IMO if the developers start crawling round it...

Also, if house prices continue falling, you could end up losing a hell of a lot more by next spring than you would selling now. Are there any good schools nearby? That's always a great selling point for this time of year.

Alternatively, you could try an auction with a reserve price. Obviously you'd have fees to take into account, etc, but at least it would be sorted quickly quicker without so much of the hassle.

Good luck. Tough times...

Jx

dancingfairy

Ames - hi :hello: I can't believe your dad and sister are putting you in this position (well sadly I can).
I agree with the previous poster that an auction may be a good way to get rid of it.
I really think you need to some free legal advice on this one - do you have a legal advice centre that could help at all? could your CAB point you in the right direction?
You might want to look into a forced sale - I can't see how it's right that your sister can deprive you of your benefits or proceeds from the house for no good reason. It' not right and it shouldn't be necessary but if your dad/sister won't support you - emotionally and financially then what can you do? She doesn't live there, their are no children that need rehousing etc and the fact your dad wants to buy it but isn't prepared to until Spring is irrelvant as far as I can see.
As to council tax I believe until probate is granted then it will get an exemption when probate is granted the responsibility will pass to you and your sister but you will may be entitled to 6 months unoccupied and unfurnished exemption -normally you can only get it if the previous owner hasn't used the 6 months exemption but as your mum obviously used the exemption before she sadly passed away I'm not sure whether the council would grant you the 6 month exemption of not.
With regards to the mortgage - are you responsible for paying it? can you get the mortgage company to let you have a breather as you intend to sell it? this would keep costs down.
I think you're going to need some legal help though
Best of Luck
df

dancingfairy

Or as someonelse suggested - tell your dad he can buy your share - if he can get a mortgage for the amount needed (until he sells his other house).
df

Ames

Thanks everyone.

I don't think I'm strong enough to tell them where to go. They're the only family I have, and I don't want to lose them.

I totally agree though that they're waaaay behind the times when it comes to property stuff, thinking that there's still the spring bump and that spending 5k will add 20k.

Schools - there's a great primary but a terrible secondary near.

I don't think mum used a council tax exemption before she passed away, she got council tax benefit. As I said, I have it in writing from them that there's nothing to pay until next April, but that might change once probate is granted.

I don't want to not tell the jobcentre about probate being granted and me owning half the house until it's sold in case I get into a lot of trouble.

RAS

Ames
Can you please check something.

There are three stages to inheritance. You are at the end of the first stage, getting probate.

Then there is the collecting in money, sorting out debts and re-paying any overpaid benefits etc period, which cannot be done until probate is granted but during which the money and goods still belong to the estate.

Then there is disbursement; when ownership of the goods and money passes from the estate to the benficiaries.

I assume that your benefits are only going to be affected once disbursement takes place? If so, can you tell your sister that if the house is not going on the market until Spetember, disbursement has to be delayed.

Finally any point in explaining to them both that house prices in your area are likely to drop over the next year rather than increase. Just about anywhere outside London and the South East that is still happening and if interest rates rise at all they will nose-dive. So they are stupid to delay selling. Tell your sister that if the value drops over the next year, she can fund the reduction from her haplf of the estate (I know you won't but think about it).