What to do with 50% inherited house and a grumpy brother

Doctorbee

My elderly father passed away unexpectedly in February - leaving his home equally to me and my brother. The grief was hard but now I am ready make decisions.

My older brother has 4 daughters and is now my only 'close' relative. He's a bully, throwing tantrums, not speaking to me to get his own way. I put up with it for my father who I loved dearly, but no more. He says he will cut me off - but in reality he already has - only communicating by email.

I want to cut myself free, be brave and move on. However, my brother says he wants to rent the property, which is in a highly desirable location, but won't properly renovate which it needs after 50 years of the same owner ('a lick of paint will be fine'). Everyone has warned me that the maintenance and repairs without this will just continue to mount up. Selling would give us around £200k each. He is really putting pressure on saying can either rent or he will buy me out (not me buy him out) because 'it is his children's inheritance'. Except it isn't - and I feel the only truly fair thing to do is to sell and split. I am scared that I am making a disastrous financial decision for myself by selling but I worry that renting will only run a poor property into the ground and store up trouble. I know he and his children will never speak to me again, I am starting to accept it will probably be like that whatever I do.

Any words of wisdom or experience would be great. Thanks.

cte1111

It does sound like selling up is the best bet. Otherwise you are stuck effectively running a business with your estranged brother, which does not sound like a good plan.

Does he have the means to buy you out at a reasonable rate? If so, then it sounds like a no brainer to me. Your brother could use his share to buy a buy to let property, if he thinks that is the best long term investment. Good luck, I fear there may be more hurdles before this one is resolved.

Bossypants

If he's willing to buy you out for 50% market value, why does it matter to you whether he keeps the property himself? The result for you will be the same as if you both sell to an outside buyer.

getinmyselfoutadebt

Why is your only option to sell and split? Why dont you want to let him buy you out. Seems that way yiu both getbwhat you want

G_M

Who is the Executer of the will?

There are only 2 sensible options:

1) sell and split the cash 50/50
2) get the property valued (properly!) and let him buy you out by giving you half the value. How he does this is his affair: get a mortgage, use his savings, borrow off his mates, whatever

You need to disentangle yourself financially. What happens to the relationship thereafter will be simply a relationship issue, separated from any business arguements.

Do NOT jointly let the property out.

Mr.Generous

buying you out is the same thing as selling as far as you are concerned. You get 3 estate agents valuations and you take the middle figure. He pays you half of this if he buys you out. If you sold to someone else you'd get the same amount - less agents fee's - subject to sale value.
To make money letting a £400k house is not the best return anyway, with your £200k you could buy 2 houses that would bring £600 per month approx.

rosyw

I've been in a similar position, luckily for me my father knew how difficult my brother would be and stated in his will that the house was to be sold and the proceeds split between us. If your brother is able to buy you out - without a "discount for family" let him do so asap! You need to be able to get on with your life, if it means cutting ties with your brother then so be it, if he's anything like mine it really is no great loss,if he can't buy you out then insist the house is sold. Good luck.

AnotherJoe

There are two massive reasons to sell here. Whether that's sell and split the money or he buys you out, who cares?
The first one is your non-relationship with your brother. Do you seriously want to start up a business with him ?
The second is, as said, why is your fathers house the best place to let if you decide to be a landlord? You'd almost certainly be better off buying a lower maintenance £200k property, perhaps a newish flat, amd letting that out.or even a couple of £200k properties with buy to let mortgages at £100k each.

Which I suppose leads me to a third reason, do you actually even want to be a Landlord? Would you even be considering this if you hadn't been left a house? Are you aware of the legal side? The tax side? The work involved ? Could you do better things with the money ?

DigForVictory

This is where an Executor can really work for their percentage of the estate - as forcing a sale is not light work, but probably the cleanest & least messily divisive option. If it's you two, step back, appoint a solicitor to take over your role as Executor & let your brother run down the estate arguing with the sol.

Sense will dawn eventually...

Whether relationships with your brother & his family can ever be achieved seems to depend in part on whether he can successfully lease the place, but it is absolutely your privilege to say you want no part of it, and to let the law grind on.

csgohan4

You only have control over your actions, if being an a$$hole is what they want to be, that is their problem not yours.


Make a clean break and sell the house. Karma always bite back.

Mojisola

Doctorbee wrote: »

I want to cut myself free, be brave and move on.

He is really putting pressure on saying can either rent or he will buy me out (not me buy him out) because 'it is his children's inheritance'. Except it isn't

It can be his children's inheritance if he buys you out (at a fair market price).