Buying out of brothers share.

daytonaboy42

Hi,
I am need of a bit of advice. My father died in march this year and consequently his house was left to me and my brother- 50-50 split. The house was valued at probate of around £185k
My share has a mortgage charge on it, of around 77k. As we were in the process of selling our own home, we decided to move in to dads house to be able to renovate to a decent standard before marketing the property. Since we moved in in October we have taken 2k out of the cash in hand of dads estate to start the renovation work- carpets-new bathroom and painting the whole property. The house was then revalued by the estate agents at around 200k.
Since then we have decided to buy my brothers share out. My idea is now to take the last mortgage value and deduct 50% of the added value to arrive at the figure to give my brother.
I will struggle a bit to attain the full amount to give my brother, by about 5k, but would enter into an agreement to pay the rest next year once my wife returns to work after having our 2 kids. As I am trying to come to an arrangment with my brother this would obviously save ES fees-4500 ish and I am told we only need one solicitor as there would be no conflict of interest between us. My problem is if my brother refuses to play ball, where do I stand in respect of the added value that I have been alone in adding to the property. I understand that as an executor,as is my brother I have an obligation to attain the best price for the the executors, but obviously I would be left out of pocket. I have now also refurbed the kitchen which would add a potential 10k onto the value, on the premise if we have to sell. at least I am maximising my profit. If this would be the case would I be entitled to my share plus being able to claim back the money that I have invested?
Any ideas?
Ta muchly.

Yorkshireman99

You probably need a professional surveyor to work it all out. Did your brother agree to all the work you have had done? Solicitors will seldom act for both parties because of conflict of interest. Your brother is entitled to his fair share so saying he is not playing ball suggests he feels you are not being even handed. Any extra costs to sort it out really are your responsibility. I suggest you consider mediation with him before the costs escalate.

SeniorSam

If an agreement were made between you both, how do you propose to honor your side of the agreement if your circumstances change. Your brother needs to have his share secured in some way but with a mortgage, it may be difficult. These difficulties could cause real problems between you, so have two solicitors and be fair.

Sam

Yorkshireman99

The other point is that the OP has had the benefit of the house for several months then it would be equitable for his brother to be paid the market rent on his share for the duration.

getmore4less

Was there an outstanding mortgage on the place?

You really should have agreed up front before starting what the plan was.

WYSPECIAL

daytonaboy42 wrote: »

Hi,
The house was valued at probate of around £185k
My share has a mortgage charge on it, of around 77k.

Why does only your share have a mortgage charge on it?

Homeownertobe

Just to be clear, you've taken ownership of the property for several months (depriving your brother of this), spent money from the estate to improve the house that you're calling home, and now you want to use that money for solely your benefit? I'd suggest your brother have you kicked out immediately and the house put on the open market so you can't scam more from him.