Beneficiary wanting to buy out other beneficiaries from inherited property

glyndwr1999

The beneficiary that has offered the 44k cash offer is my brother, who can see how stressed I am with all the issues, and thinking of withdrawing the offer and taking. His chances at auction.

unforeseen

I would be tempted to just let the EA market it normally. The net return from an auction after their costs have been deducted from the sale price will IMHO be less than a normal sale.

Threewheeler

As I see it, you as executor have total say on the sale, you have to be prepared for any of the other 11 to take action to stop the sale, this will be a cost to them not the estate if they contest your decision. You, as has already been said have to be able to justify your decisions, you seem to have made a good case already. The only fly in the ointment is that it is your brother who is trying to purchase the house, yoou need to be sure that your figures that you have worked out will stand up in court if the others decide that you have acted unfairly, this at their cost. I would believe that you were entrusted with the position as executor, so you should be positive and make the decisions that you feel are right and believe that this course is the best for the estate, which effectively means that you and the others are getting the most financially out of the estate. Good luck with the others, remember you and no one else was entrusted with the job by the deceased.

unforeseen

If you want to put a little extra effort in I would suggest you do the following:

Get 3 valuations for a normal sale AND get the costs that the estate would have to pay for taking this route e.g. commission etc. I would suggest leaving out solicitor costs as these would be roughly the same for EA sale and private sale. For calculation base the price on a mid figure of the 3.

Get costs for going to auction. 2.5% +VAT seems to be a general rate from auction houses. However solicitor costs may be higher than normal as they have to put a legal pack together. Selling price will probably be below any of the EA valuations and possibly below brothers offer but base it on E.G. £45k

Work out costs for the estate selling direct to your brother.

Armed with this information it should become obvious which gives the best return for the estate. You are now armed with information to counter any arguments that the other beneficiaries may put forward when you sell via the route that gives the best return

getmore4less

unforeseen wrote: »

If you want to put a little extra effort in I would suggest you do the following:

Get 3 valuations for a normal sale AND get the costs that the estate would have to pay for taking this route e.g. commission etc. I would suggest leaving out solicitor costs as these would be roughly the same for EA sale and private sale. For calculation base the price on a mid figure of the 3.

Get costs for going to auction. 2.5% +VAT seems to be a general rate from auction houses. However solicitor costs may be higher than normal as they have to put a legal pack together. Selling price will probably be below any of the EA valuations and possibly below brothers offer but base it on E.G. £45k

Work out costs for the estate selling direct to your brother.

Armed with this information it should become obvious which gives the best return for the estate. You are now armed with information to counter any arguments that the other beneficiaries may put forward when you sell via the route that gives the best return

could be very different as the private sale will not need anything but a receipt and the OP can do the land reg transfer.

A private sale will need a full contract, a cash buyer may be happy to not go through a full contract process but may insist on dealing with a solicitor to ensure clean title.

glyndwr1999

The cash offer beneficiary is more than happy to proceed with just a receipt, he knows the property very well and is aware of the risks involved, so that would save the solicitors conveyancing fees on both sides,mplus save the ea fees which are £1500 plus vat.

glyndwr1999

I've never sold a house before, so could I market it with an estate agent and see what transpires in the coming days / weeks, then if no offers are made that match the cash offer withdraw the house from the market and proceed privately, is that possible?

unforeseen

Fair enough. Include solicitors costs in each. Principle stays the same though, it gives the executor a set of benchmarks on which to base their decision.

You have to make some assumptions rather than try to cater for all permutations of cash or mortgage buyer, need or not for a solicitor etc. As long as each method uses the same assumptions then the playing field stays level and the decision will be valid.

glyndwr1999

And one more question, in the eyes of the stamp duty, would any beneficiary be buying all the house or only 11/12 of the house as technically he already owns 1/12 of it.
that could then be below the 40k 2nd home stamp duty rate.

Could this be right?

unforeseen

glyndwr1999 wrote: »

I've never sold a house before, so could I market it with an estate agent and see what transpires in the coming days / weeks, then if no offers are made that match the cash offer withdraw the house from the market and proceed privately, is that possible?

I think, but I am not sure, you will still incur EA fees of some sort