Buying family out of shared inherited house

1971

Hi, I am asking for my cousin.

House belonged to dad, left to 3 children who are adults.
Daughter lives in the house, other 2 sons live and own houses of their own.

She wants to buy the two brothers out.
What things should she be thinking when making them an offer?
- get house valued
- research what's been sold
- capital gains tax the 2 brothers have to pay if sold to 3rd party.
- house needs wiring work (assuming they would have to do if sold to someone else)

Anything else that she should consider?

She doesn't want her to get ripped off
unfortunately the 2 sons are a bit tight when it comes to money as previous learnt.

Thanks

kingstreet

Why would they have CGT to pay?

Has the property value increased since it was left to them?

Check here;-

http://www.rightmove.co.uk/house-prices.html

for recent (last four months) sold prices of similar property in vicinity (0.5 miles or less) as these are the comparables a surveyor would use when valuing for a mortgage lender.

What was the probate value at the date of the father's death? Apply an index to that over the time since then, such as Nationwide's?

http://www.nationwide.co.uk/about/house-price-index/house-price-calculator

Pay £20 for a HomeTrack valuation?

https://www.hometrack.com/uk/products/property-market-intelligence/property-valuation-report/

xylophone

There are two ways of approaching the valuation.

Option 1, the value of the house if it were being sold by the owners to an unconnected third party.

Option 2, the value of the house with a "sitting part owner"- ie, the value of the two thirds sold to a willing buyer prepared to leave the co owner in situ.

The value of the brothers' share under Option 2 would be lower than the share under Option 1.

The capital gains consideration (for the brothers) does not seem to be relevant to the value of the house.

The need for rewiring does not seem to be relevant either - a house can be sold even if in need of rewiring.