need advice regarding a property.

coose22

Hey all, long story short i own a house 50/50% with my sister. The mortgage has now been paid off completely and it's lived in currently by my sister and nephew.

So, i'd like to know if there is any way to release money from my shares in the house? neither of us want to sell the house of course.

I know there is equity release schemes around, but it seems to be only available for people over the age of 65. And for what it's worth, i'm 21. And the value of the house is £130,000.

Any ideas?

foreign_correspondent

ask your sister if she wants to buy you out?

jahudson72

I think you'd have to ask her to buy you out.

coose22

well she for sure can't buy me out because of a lack of capital, and i'm not sure she would want to either way.

also i should add, the reason i can't just apply for a loan/mortgage is because i'm self employed working with equity and trading, but it's kind of hard to show a bank expected income sheets for these kind of things.

G_M

The options you have are;
1) sell your 50% to your sister at an agreed market rate (get 3 estate agnts round?)
2) sell the property on the open market and split the proceeds 50/50
3) Allow your sister / nephew to live there but charge them rent for your share. Again, ask local letting agents what a market rent is in the are and divide by 2. At least that way you get an income (taxable!) from 'your' property, just as she is benefitting from a cheap place to live by having inherited (I'm guessing) her home.

coose22

Thanks for the reply G_M.

Yeah, basically my grandaparents lived there from the 1960s until a few years back when they both passed away within a month of eachother. they paid off the mortgage a long long time ago. both were seriously fragile and ill for about 4 years, and me + my sister basically looked after them everyday for this time, doing pretty much everything you can imagine. and besides my mother we have zero family in england, hence why we were left the house.

So, it looks like renting is going to be the only realistic option at this point, but hey i geuss that is better than nothing, and maybe??, i will have better chances of getting a mortgage myself with a consisitent (taxable ) income showing.

LandyAndy

Are you and your sister 'joint tenants' or 'tenants in common'.

I don't know how this might affect what you can do but someone on here might know.

BitterAndTwisted

coose22 wrote: »

Well she for sure can't buy me out because of a lack of capital, and I'm not sure she would want to either way.

She doesn't need any capital: she already owns 50% of the property and could raise a mortgage for the remaining 50% to buy you out.

You're not currently getting any benefit from your share and co-owning property can cause unknown complications in the future. To be fair, your sister should be paying you a fair rent for your half. Proposing this could prove to be the lever that you need.

coose22

Yeh i've never recieved any benefits from my share, as i let my sister and my nephew live there for free, but he is at school full time now and she has been clearly told that monthly rental payments one way or the other are coming soon.

Also wrt your point about capital, she is unemployed so i doubt very much she is going to be buying me out via a mortgage or anything along those lines any time soon, as much as this would suit both our needs.

@ Landy, i'm not certain, but think that we're tenants in common...

coose22

Thanks for all the replys btw.

RAS

You need to know if you are tenants in common or joint tenants.