Been screwed over inheritence!

Fire_Fox

I'm really struggling to understand too. Who is the executor of the will? How do you know the value of the house, you can't just take average sale prices in the middle of a recession? The cost of the refurbishment is irrelevant, the value of the property was as it stood after your father died. That should have been established by estate agents or a surveyor, not by taking sold prices and subtracting the estimated cost of the work. There is generally a profit to be had in buying a wreck and doing it up, that is how developers make their money.

floss2

no1catman wrote: »

...Understand, what yo mean with the house sale figure, but that divide two + the rest divide by three makes savings £4.5k, whereas more likely ten times that or more...

TBH, your posts make you out to be money-grabbing.

I suggest you ask your brother for a copy of the accounts that were provided for probate to be granted.

Also don't forget that house prices in most areas of the UK have gone down by up to 20% over the last few years, and it sounds as though your father's home was "in need of updating" before it could have been sold on the open market. Would you have been happy to fund that, prior to a sale, before you got your share of your father's estate?

zaksmum

I can't get my head around what point the OP's trying to make at all.

Mojisola

no1catman wrote: »

No I don't care how much the work done on the house cost her, didn't think I said I did.

I thought that you were saying, in your first post, that the money for the improvements came out of your father's estate before the house was then sold at a discount to your sister.

We're doing our best to understand but your posts are a bit garbled.

If the house was to be sold by the executors and the money distributed between the beneficiaries, then it should have been sold at the market price.

If the house was to be inherited by all three of you, then you - as one of the new owners - should have been involved in the decisions about the sale.

Get a copy of the accounts and the will so you can see exactly what they say.

duchy

OP
I think you are saying (please correct me if I'm wrong)

1 Your father's will left the house equally to three siblings -you, your brother and your sister.

2 You agreed you sister could buy you and your brother out

3 The executor should have agreed this with all 3 parties concerned and the valuation (most normal way is to ask 3 estate agents to value based on a quick sale to get the valuation and use the figures as an average)

4 The value of the estate less any mortgage, outstanding debts, funeral expenses -then pays out the remaining. so to your sister anything after deducting her third of the house value and to you and your brother your third of the proceeds of the house sale plus a third of the remaining estate.

You appear to be assuming your Dad had other assets and no debts-could you be mistaken ? Surely if he was in a care home the cost of that would be deducted from the estate as a liability too (This may indeed be where the "shortfall" may be-Care home costs are huge)

I'm not sure why you appear to be unaware of the details of the estate or how the valuation was reached but agree your first step is to look at the accounts.

I'd hold back on any accusations until you have all the facts.

no1catman

TheConways wrote: »

I have to say, you are a really difficult poster to understand!!! You seem to know what you are talking about, but everyone else is struggling to understand.

What I would be asking is: if it was agreed that your sister would purchase the house, why were you not involved in the negotiation, when the house belonged to you as much as it belonged to your brother and sister? You should have agreed a figure upfront etc etc.

Maybe it is the 'situation' that is difficult to comprehend!

Why was I not involved (or at least informed) of the negotiation?
Good question - wish in retrospect I new the answer!

Duchy:
1: Yes.
2: I had no problem with my sister buying the house, I had moved already from a terraced house to a semi five years ago, otherwise I may have been interested.
3: I was informed earlier in the year of three estate agents being asked for a valuation, but I was not told if that happened or what the figure was!
4: Yes.
Oh yes know how expensive care homes can be. Knew there were savings assets (what is 'debt' my Father wouldn't understand that, if he couldn't afford it he didn't get it - never did HP or a loan), but wouldn't know how much e.h. whether 10k or 100k.

I haven't made any 'accusations' only expressed my surprise at the low figure of the house sale price - and await comments.

Mojisola:
"If the house was to be sold by the executors and the money distributed between the beneficiaries, then it should have been sold at the market price."

Precisely, that's the whole point. Define a market price? Something that people are willing to pay, based on similar properties in the area, allowing for any work that needs to be done.
But not one that is in the region £50k below that figure!

"If the house was to be inherited by all three of you, then you -
as one of the new owners - should have been involved in the decisions about the sale."

Again good point, in retrospect wish I was!!

deedee71

I'm also struggling to understand. But OP have you taken into account your sister technically "already owned" 1/3 of the house ie if it was worth £90k she would have to pay the estate £60k to buy the other two 1/3 shares out.

Could that be what is showing on the Property Prices website you have looked at?

I do agree you should have had more of an input that just being handed a cheque at the end of the process though.

Fire_Fox

no1catman wrote: »

Maybe it is the 'situation' that is difficult to comprehend!

Why was I not involved (or at least informed) of the negotiation?
Good question - wish in retrospect I new the answer!

Duchy:
1: Yes.
2: I had no problem with my sister buying the house, I had moved already from a terraced house to a semi five years ago, otherwise I may have been interested.
3: I was informed earlier in the year of three estate agents being asked for a valuation, but I was not told if that happened or what the figure was!
4: Yes.
Oh yes know how expensive care homes can be. Knew there were savings assets (what is 'debt' my Father wouldn't understand that, if he couldn't afford it he didn't get it - never did HP or a loan), but wouldn't know how much e.h. whether 10k or 100k.

I haven't made any 'accusations' only expressed my surprise at the low figure of the house sale price - and await comments.

Mojisola:
"If the house was to be sold by the executors and the money distributed between the beneficiaries, then it should have been sold at the market price."

Precisely, that's the whole point. Define a market price? Something that people are willing to pay, based on similar properties in the area, allowing for any work that needs to be done.
But not one that is in the region £50k below that figure!

"If the house was to be inherited by all three of you, then you -
as one of the new owners - should have been involved in the decisions about the sale."

Again good point, in retrospect wish I was!!

Accusations are implied in your posts, specifically 'screwed' in the title, the emboldening for emphasis, the 'holier than thou' and 'temerity' comments.

Did you all inherit the house or did the will specify everything was to be sold and the proceeds shared? If the latter AFAIK the executor would not need to involve you in the sale, they are responsible for getting a fair price tho. Are you sure your sister got cash as well as a discount on the property? Your brother's comment can be taken more than one way.

The market price can be set by estate agents/ what someone is willing to pay but not by a simple 'value of similar house in good condition minus building work' equation. Depending how poor the condition is, the property might be un-mortgageable or any mortgage company would withhold a chunk of money until the works are completed. These reduce the pool of potential buyers to (mostly) developers and hence reduce the value. In the recession there are fewer buyers of all kinds, family and developer.

mountainofdebt

I think what the OP is saying / having a b!tch (delete as appropriate) is that the price his sister paid for the house was heavily discounted to take into account the modernisation of property and then the sale proceeds plus savings was divided by 3 ....so sister had a cheap house plus one third of estate .

It's always been my understanding that houses needing modernisation will be discounted and you may find that an alternative buyer would have offered less (oh and don't forget estate agent fees as well) so you may have got what sister paid anyway.

FBaby

Did you base the value of the house before or after the renovation?

There were two ways to look at it, value to house after the work, deduct what she put in to renovate (which you admit you don't really know the extend of the costs), then divide by three, she pays you each 1/3rd of it OR

The equity based on valuation BEFORE the work was done is divided by 3, she give you 2/3rd, and she keeps the difference between the the before and after renovation value, which could very well be more than what she put in. As a matter of fact, it is likely to be the case if she did a good job doing the work at low cost and focussing on what would increase the value of the house. Add to this the selling costs and that might explain what was left to be divided between your brother and yourself.