Buying Parents House

troubleinparadise

It probably depends on how good your relationship with your co-beneficiary sibling/s is/are.

That is, will they be happy for you to buy their share at the market rate, or would they rather see the property sold to a fresh purchaser.

All depending on whether the house still exists as an asset of the estate when the dreaded day of reckoning arrives - a lot can happen before a clause in a will becomes reality.

whambam

Okay after some research we should be discussing Rules of Intestacy after parents have gone, the children DO inherit the property in equal shares. So, I guess that would mean I would have to buy my shares from my other siblings to own 100% of the home minus any siblings still remaining?

troubleinparadise

whambam wrote: »

Okay after some research we should be discussing Rules of Intestacy after parents have gone, the children DO inherit the property in equal shares. So, I guess that would mean I would have to buy my shares from my other siblings to own 100% of the home minus any siblings still remaining?

Simplistically, yes.

And as my previous post says, you would need the agreement of the other beneficiaries to sell their shares to you at the market rate.

However, if the estate owes any monies there may be a situation that the house would have to be sold to meet those debts, and the remaining sum then shared between the beneficiaries according to the intestacy laws.

Whambam: I would have to buy my shares from my other siblings to own 100% of the home minus any siblings still remaining

I'm afraid I don't understand what you mean by this?

whambam

I meant those who are still living at the property as occupants not ready to move out yet.

fewcloudy

Sorry, I'm sure you are asking a simple question really, but because you are drip-feeding little snippets of extra information with every other post, it is nearly impossible to understand what you are actually asking.

Why not include all relevant information from the beginning, in hopes that you can get an answer that takes all this into account?

Yorkie1

whambam wrote: »

Okay after some research we should be discussing Rules of Intestacy after parents have gone, the children DO inherit the property in equal shares. So, I guess that would mean I would have to buy my shares from my other siblings to own 100% of the home minus any siblings still remaining?

whambam wrote: »

I meant those who are still living at the property as occupants not ready to move out yet.

You aren't making a great deal of sense but I'll have another go (part of what I'm about to type I have already typed once in post #9).

Intestacy rules only apply if a will hasn't been made.

If all siblings inherit equally, whether under intestacy or the will, then if you want to own it outright then yes, you need to buy the others out. That means raising the cash through savings or a mortgage. The property will be valued independently, I think, and you pay them their proportions (e.g. if you have 3 siblings then you pay them 25% each).

If you need a mortgage then you either get a residential mortgage (no siblings remain in the property after purchase and you move in) or a regulated Buy To Let (sibling/s remain in the property). The regulated BTL will not be as easy to find and you may have difficulties anyway because the previous owners (i.e. siblings) remain present.

That would be a job for a good independent broker.

whambam

fewcloudy wrote: »

Sorry, I'm sure you are asking a simple question really, but because you are drip-feeding little snippets of extra information with every other post, it is nearly impossible to understand what you are actually asking.

Why not include all relevant information from the beginning, in hopes that you can get an answer that takes all this into account?

Why dont you come round for a pint and we will talk all night about it! Its a forum.

Yorkie1 wrote: »

You aren't making a great deal of sense but I'll have another go (part of what I'm about to type I have already typed once in post #9).

Intestacy rules only apply if a will hasn't been made.

If all siblings inherit equally, whether under intestacy or the will, then if you want to own it outright then yes, you need to buy the others out. That means raising the cash through savings or a mortgage. The property will be valued independently, I think, and you pay them their proportions (e.g. if you have 3 siblings then you pay them 25% each).

If you need a mortgage then you either get a residential mortgage (no siblings remain in the property after purchase and you move in) or a regulated Buy To Let (sibling/s remain in the property). The regulated BTL will not be as easy to find and you may have difficulties anyway because the previous owners (i.e. siblings) remain present.

That would be a job for a good independent broker.

Regulated BTL interesting. So, would the title deeds be under my name with siblings remaining? Or will the solicitor know this.

Yorkie1

whambam wrote: »

Why dont you come round for a pint and we will talk all night about it! Its a forum.



Regulated BTL interesting. So, would the title deeds be under my name with siblings remaining? Or will the solicitor know this.

Your use of the phrase "siblings remaining" really is confusing. Do you mean remaining in the property, or remaining as owners? We are assuming that you mean remaining in the property - but if you mean something else then you need to clarify.

This is one reason why it is so frustrating for people to drip-feed information! I'm slightly losing the plot which you have in your mind.

Assuming that you want to:
a) buy the property i.e. pay off your siblings; and
b) rent it to them (so you are the landlord and they are tenants)
then the mortgage would be a regulated BTL because family are the tenants.

If the siblings are resident before all the transactions happen, then as I said earlier this may cause problems with the mortgage from the outset.

You really need to sit down with a mortgage broker and ask all your questions.

Doshwaster

whambam wrote: »

I meant those who are still living at the property as occupants not ready to move out yet.

Sounds like a very complicated situation.

What if your siblings don't want you to own the property outright?
Would they pay you rent or would they stop there for free?
What happens if you want to move in with your family and they refuse to move out?

I know the property has "sentimental" value to you (and presumably to your siblings) but you need to carefully consider the practicalities.

Foxy-Stoat_3

So parents are still alive, have you spoken to them about naming you solely in the Will or will they want their possessions split evenly when they both pass?

If they don't have a Will then all their possessions will go to the children evenly after all the debts are settled and any tax paid assuming no one disputes anything.

If you want to purchase the house off the Estate then you will need to come to an agreement over the price, must be the market value at the time, assuming there are other siblings....so your comment about the remaining siblings would suggest that there may be 1/2 or 3 etc....so if one of them dies before your parents that's one less beneficiary.