Calculating House Value >> Transfer In Ownership

Andy7856

Hi.

I just need some general advice and opinion.

To cut a long story short, my sister and I both own 50% each of a deceased family member's house. I live in that house, my sister does not. I wish to buy (transfer) my sister's 50% share out (cash - no mortgage) and continue living in the property a few more years.

1) What is the fairest method of working out the transfer value? We considered getting 3 x estate valuations then taking the average price. But this may distort it due to the estate agent over valuing the asking price.

2) What is the fairest method of working out the legal fees? I am considering that we both pay 50% of the transfer legal fees that cover the 'sale' element then I would pay 100% of legal costs to cover the 'buy' element. (if you follow).

Any personal experience would be welcome, I dont want to rip my sister off, but I do want the transfer to be fair to both parties.

Cheers!

googler

Get an RICS surveyor, preferably one who doesn't routinely do sales in your area. He/she won't have any interest in anything other than what he sees as a realistic valuation.

It's also fairer than getting three agents out when you have no intention of selling with any of them.

G_M

1) three estate agents - but as you say they often over-value in order to persuade a buyer to use their services. But they are free. Additional issue is how to calculate the 'average' of three: the middle valuation? Add the 3 valuations together and divide by 3?

2) One or two surveyors to do a 'Valuation' This is what mortgage lenders do before confirming a mortgage offer. But you have to pay. £200?

3) Own research. Look at sale prices of similar local properties. NOT the prices they are on the market for, but the actual price sold. See http://www.nethouseprices.com/ or similar.

Not sure why you feel you need to pay 50% of the 'sale' legal fees. Your sister is selling. She should pay her legal fees.

BUT. I assume as you are living in her house (well, half her house) you are paying her rent???!!

If not, perhaps you should be a bit more generous. She currently owns half a house but is getting nothing. You are getting a cheap home.

loubel

As you already own the house it's a transfer of equity you're doing, not a sale/purchase and this will reduce the legal fees. I don't see why your sister shouldn't pay for her own legal advice if she chooses to get it.

donnyvikings

I was told by a friend that my house was up on a website called findaproperty.com , to my amazment it was there along with every house on the street. I was a little distressed to see our humble abode valued at £230k, when it was valued last year at £435k. This sounds trivial, but that would in some cases put your house into negative equity! All the houses on the list were under valued. One (My neighbours) said he had purchased it for £90k last year.....even though he's lived in it since it was built 20 years ago-and its valued at 320k! Ive spoken to the company 'digital properties' who state that their valuations are done by an 'expert' and based on equivalent properties in the area. Not being funny, but we live in a small village in the country-but 6 miles away is a small town, which is a dreadful place! burnt out cars, boarded up houses, shutters on every shop....you get the picture. The company state the equivalent valuation is based on property within a 10 mile radius-so they are comparing our houses to that from this town-and as you would agree, it cant possibly give a true or even close valuation. Anyone using this company should be wary of the property valuation being 'way out'.
They are based in Brighton, and dont physically come to view your property-just a best guess I think. So be careful :T

googler

donnyvikings wrote: »

I was told by a friend that my house was up on a website called findaproperty.com , to my amazment it was there along with every house on the street. I was a little distressed to see our humble abode valued at £230k, when it was valued last year at £435k. This sounds trivial, but that would in some cases put your house into negative equity! All the houses on the list were under valued.

As with Zoopla's guesstimates, nobody whose opinion matters will pay any notice to these figures.

donnyvikings

googler wrote: »

As with Zoopla's guesstimates, nobody whose opinion matters will pay any notice to these figures.

Ive just had a call from one of the estate agents who I emailed about this 'valuation' and they say its mis-representation, and are going to have them investigated......:money:

googler

donnyvikings wrote: »

Ive just had a call from one of the estate agents who I emailed about this 'valuation' and they say its mis-representation, and are going to have them investigated......:money:

Is this EA selling one or more of the properties concerned?

Who on earth are they going to call to have them 'investigated'?

geoffky

I would be more worried that you believed a estate agent...

antrobus

loubel wrote: »

As you already own the house it's a transfer of equity you're doing, not a sale/purchase and this will reduce the legal fees. I don't see why your sister shouldn't pay for her own legal advice if she chooses to get it.

Not really. The sister already owns the house as well, and there is actual money changing hands. Buying a half share in a house isn't really any different from buying a full share in a house, legally speaking.

As to calculating the value well, you can't 'calculate' the value, all you can do is get other people's opinion of what the value might be.
In the end what matters is that your sister and you agree on a price that you are both happy with.