Problems with inherited multi owned rental property

sueylouy

My sister, brother and I were left property by father. My sister has been renting this house (no rentalcontract) for the last 20 years (peppercorn rent) but has now decided to move out and wants the house sold. My brother and I do not want to sell it but are prepared to buy her out. For some reason she does not want to be bought out, she wants the house sold and is threatening to force the sale by court order. Can she do this if there is family member willing to buy her out?

Also she is denying access to letting company (we want an up to date potential rental valuation) and my brother and do not have keys. as 2/3 owners, are we within our rights to demand access to see the condition of the property? Or when she is away, as equal owners, can we change the locks to gain access as long as we give her a key also. ? We want to take a builder round to estimate the cost of repairs.

Another option after she has moved out, is that my brother move in for a short period to work on the house, is she legally able to stop him as equal owner?

If the house is forced on to the open market by court order, who is liable for court costs/legal fees etc? Does it come out of the proceeds of the sale or is she liable for the costs as she is one who initiated the court order?

Pixie5740

Your sister could go to court to force the sale but that will take time and cost £££ which seems daft if you and your brother are offering to buy her out. Either way she'll end up with 1/3 of the sale price minus costs it's just that doing it her way means greater costs.

As for gaining access. That's a tricky one. How you go about it depends on what sort of tenancy your sister has, she could be an Assured Tenant.

sueylouy

Thanks for your reply. She does not have any tenancy agreement at all. She just paid our father a peppercorn rent. The three of us own it equally.

Pixie5740

She lived there in exchange for paying rent, whether a peppercorn rent or full market rent, it doesn't matter, a tenancy does exist.

sueylouy

I see what you mean, there was no contract or tenancy agreement signed.

Pixie5740

It doesn't matter that a tenancy agreement document doesn't exist.

sueylouy

So how would I find out if she was an assured tenant? I know it was only ever an informal verbal agreement. I was hoping as owners, my brother and I could demand access.

anselld

It is difficult to see any motivation for her to insist on a sale.

Call me cynical but I can only guess that she wants to control the sale in order to pocket all the proceeds. Having sponged rent-free for 20 years this does not seem totally improbable!

I would tell her straight, she can choose between fighting you in court or accepting a fair buy-out. She will lose in court anyway if you have made a fair buy-out offer.

I am not convinced that she is a tenant as suggested above. She is one of three joint owners who happens to be an occupant. I don't see why that should exclude the other owners gaining entry.

sueylouy

Thanks very much for your help. If the forced sale went ahead, would she be liable for all court/legal costs or would it come out of the sale proceeds.

Pixie5740

That's a good point. She was a tenant when your father owned it but now she's an owner herself.

sueylouy

Thats correct