How to get collateral out of home you half own?

Sea_Shell

I hope you are able to get this resolved, hopefully without falling out with your Brother.

I'd suggest trying to get him to see it from your perspective. Maybe he just hasn't looked at it that way. How would he feel if roles were reversed?

Otherwise I can see how you might feel that you've been "dis-inherited" despite actually inheriting the house 50/50. I don't think i'd want to own ££££ of property "on-paper" and never see a bean of it!!!

I realise that it's the principal, rather than the ££££, per se. But I think if it were me, i'd have to weigh up the pro's & con's of further action, depending on the ££££ involved. But as you say it's the "family" home, i'm guessing it's not just 50% of a 1 bedroom flat we're talking about!!!!

Another thing to consider, as things stand....how financially sound is your Brother? Is he able to fully maintain the house, or will he be round with the hat if any major works need doing, as you are jointly responsible. Is he the sort to leave it to "go to seed" and see your "investment" wither, unless you keep stumping up the cash to keep it in tip-top condition.

ScorpiondeRooftrouser

thebigpotato wrote: »

There's other details I'm omitting from this discussion as their not overly relevant but lets say they have a tenant already paying the rent living along with them so their actually paying nothing personally... None of my business as I'm not there, i just want a simple exit strategy with less conflict, certainly what I'm getting per month won't really aid me getting on the property market where I reside as it's significantly more expensive.

The solicitors are sorting all the financials and deceleration of income.

He shouldn't pay anything personally; he owns the half he is living in. Effectively the tenant is living in your half and paying rent to you.

It may not be ideally what you want but it's perfectly fair. You just want to change the circumstances to suit you a lot more and your brother a lot less.

ScorpiondeRooftrouser

Sea_Shell wrote: »

I hope you are able to get this resolved, hopefully without falling out with your Brother.

I'd suggest trying to get him to see it from your perspective. Maybe he just hasn't looked at it that way. How would he feel if roles were reversed?

Otherwise I can see how you might feel that you've been "dis-inherited" despite actually inheriting the house 50/50. I don't think i'd want to own ££££ of property "on-paper" and never see a bean of it!!!

I realise that it's the principal, rather than the ££££, per se. But I think if it were me, i'd have to weigh up the pro's & con's of further action, depending on the ££££ involved. But as you say it's the "family" home, i'm guessing it's not just 50% of a 1 bedroom flat we're talking about!!!!

He's not "never seeing a bean of it", he is receiving a market rent monthly.

ScorpiondeRooftrouser

G_M wrote: »

Has Probate been granted?
Who is/are the Executers?
Who is currently the registered owner? The deceased? You and brother?

The Executers could sell before distributing the Estate.

Options:

* brother buys you out for half the market value
* brother pays you rent at half the market rent
* the Executers sell and give you each half the proceeds
* you and brother sell and share the proceeds
* you go to court to force a sale
* you move in and live as a happy sibling family
* you move in and make life hell till......
* you find someone willing to buy your half and share with brother
* you do nothing

Your second option is already happening.

thebigpotato

ScorpiondeRooftrouser wrote: »

Your second option is already happening.

This conversation was never meant to be a pity thing nor full disclosure of my personal gain or loss in this scenario, I was merely looking to find out if there was something out there that would cater to this situation making it easier... obviously not but please don't make assumptions on what's fair in this scenario, you don't have the full details.

The reality is my brother has lived there freely for 8 years, the tenant pays the market value rent and he pockets half, I get half... I'm fine with that and well aware it's way more profitable for him than me, being my younger brother I'm glad he's getting it easier but also need to look out for my own interests at some point, hence this appeal for advice on which direction to go.

I've got the idea now, i'm being a soft touch as others have said and there's no great easy outcome just argue through it without hopefully cause any long term conflicts.

ScorpiondeRooftrouser

thebigpotato wrote: »

This conversation was never meant to be a pity thing nor full disclosure of my personal gain or loss in this scenario, I was merely looking to find out if there was something out there that would cater to this situation making it easier... obviously not but please don't make assumptions on what's fair in this scenario, you don't have the full details.

The reality is my brother has lived there freely for 8 years, the tenant pays the market value rent and he pockets half, I get half... I'm fine with that and well aware it's way more profitable for him than me, being my younger brother I'm glad he's getting it easier but also need to look out for my own interests at some point, hence this appeal for advice on which direction to go.

I've got the idea now, i'm being a soft touch as others have said and there's no great easy outcome just argue through it without hopefully cause any long term conflicts.

Hang on, the tenant pays the full market value rent for the house despite your brother living in it? Or do they pay the full market value rent for a room? If all you are getting is half the market rent for a room then you are certainly being short changed.

Mojisola

thebigpotato wrote: »

The reality is my brother has lived there freely for 8 years, the tenant pays the market value rent and he pockets half, I get half... I'm fine with that

Your brother is taking advantage of you.

You might be the older brother but you're both adults - does he really think you should be subbing his life for ever just because he was born later than you?

leespot

thebigpotato wrote: »

There's other details I'm omitting from this discussion as their not overly relevant but lets say they have a tenant already paying the rent living along with them so their actually paying nothing personally... None of my business as I'm not there, i just want a simple exit strategy with less conflict, certainly what I'm getting per month won't really aid me getting on the property market where I reside as it's significantly more expensive.

The solicitors are sorting all the financials and deceleration of income.

It is your business - you own half of the house. It will become your business even more if there is a tenancy agreement in place that slows down any potential sale of the house.

AdrianC

ScorpiondeRooftrouser wrote: »

Hang on, the tenant pays the full market value rent for the house despite your brother living in it? Or do they pay the full market value rent for a room? If all you are getting is half the market rent for a room then you are certainly being short changed.

Quite...

Unless we're misunderstanding... Can you confirm the situation, please?

As I'm seeing it:
You own half of a <say> two bedroom house. The market rent for that is <say> £1,000/mo. A fair rent receipt for your half would be £500/mo.
Your brother is renting one room to a lodger. The market rent for that is <say> £400/mo. You are getting half of that - £200/mo.

If that is the case, then your brother needs to be paying you £500/mo. Whether that comes from his pocket or he gets a lodger in to help him pay it is not your problem or business.

BTW, don't forget that you need to be declaring this rental income to the tax man.

thebigpotato

ScorpiondeRooftrouser wrote: »

Hang on, the tenant pays the full market value rent for the house despite your brother living in it? Or do they pay the full market value rent for a room? If all you are getting is half the market rent for a room then you are certainly being short changed.

The tenant pays full market rent, council tax, electric, water rates, everything... I don't mind being short changed there, I just want my fair share of the house sale which won't be an issue i'm sure... I was merely looking for advice on the sale/ remortgage option, wondering if there was some sort of scheme I hadn't heard of for such a scenario.

The solicitors pay the tax and all costs as part of the original arrangement, old news there and I'm not concerned about that.