How to get collateral out of home you half own?

aneary

thebigpotato wrote: »

The tenant pays full market rent, council tax, electric, water rates, everything... I don't mind being short changed there, I just want my sale fair share

So basically your brother isn't paying for anything and hasn't for some time.

He needs a reality check otherwise he will carry on for the rest of his life like this, that will be a concern for you after you sort the house out as you have a brother who can't stand on his own two feet and it'll be left to you to step in and help.

thebigpotato

aneary wrote: »

So basically your brother isn't paying for anything and hasn't for some time.

He needs a reality check otherwise he will carry on for the rest of his life like this, that will be a concern for you after you sort the house out as you have a brother who can't stand on his own two feet and it'll be left to you to step in and help.

Sure I'm aware of that, it was me doing the right thing at the time as my brother was in his early 20's but now riding close to 30 he's got in that routine, so it was a good will thing on my part at the time that later got continued, can't really blame him as it was an easy ride... What's done is done, I just want my part sooner rather than later as want to settle and start a family... No more really needs to be said on the subject now, I get we just need to talk it out and I'll likely have to do most the work and come out looking like the !!!!!! in the proceeds.

AdrianC

thebigpotato wrote: »

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.

No, there's not. It's quite simple - you jointly own the place. You can't change the ownership without the other owner's agreement and involvement. You can't mortgage the place likewise - imagine the bank trying to repossess just your half...

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

Are you thinking about the IHT for the original inheritance? I'm talking about income tax from your rental income...

G_M

thebigpotato wrote: »

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

1st time I've ever heard of solicitors paying for someone's living expenses!

I suspect you mean they manage the property using your money. Is this perhaps funds left in the Estate over and above the property itself?

If so, since you implied earlier that Probate had been granted, (and since I'm guessing the solicitors are either the Executers or employed by the Executers) why is the Estate not being distributed according to the will?

Or did the will set up a Trust of some kind? If so, and if this is to support the running costs of the property, that complicates matters and suggests the will is not as straight-forward as you first suggested.

What exactly did the will say with regards to

a) the property and
b) the rest of the Estate

And I repeat - who is/are the Executer(s)?

thebigpotato

AdrianC wrote: »

No, there's not. It's quite simple - you jointly own the place. You can't change the ownership without the other owner's agreement and involvement. You can't mortgage the place likewise - imagine the bank trying to repossess just your half...



Are you thinking about the IHT for the original inheritance? I'm talking about income tax from your rental income...

O.K I get you, this is not my area of knowledge hence why I came here and asked. When we inherited the property the fine details were dealt with by the solicitors as we were not officially inheriting the property for 6 years as part of the clause, we were not deemed old and wise enough to be handling the ownership of a 3 bedroom property at the time and likely rightly so. The property was meant to be let for 6 years then proceeding this sold, it's now 2 years later (8 in total) and things have rolled on as they were with the solicitor paying all fees, including a nice sum of tax and their fees along route. Overall i'm fine with all that, I just want to get my half now is some shape or form.

thebigpotato

G_M wrote: »

1st time I've ever heard of solicitors paying for someone's living expenses!

I suspect you mean they manage the property using your money. Is this perhaps funds left in the Estate over and above the property itself?

If so, since you implied earlier that Probate had been granted, (and since I'm guessing the solicitors are either the Executers or employed by the Executers) why is the Estate not being distributed according to the will?

Or did the will set up a Trust of some kind? If so, and if this is to support the running costs of the property, that complicates matters and suggests the will is not as straight-forward as you first suggested.

What exactly did the will say with regards to

a) the property and
b) the rest of the Estate

And I repeat - who is/are the Executer(s)?

Sorry my knowledge in this area is maybe not adequate, the will is written in what can only be described as shakespear to me but I get the fundamentals.

The solicitors manage the property using the funds gained from rent to pay for fees etc and finally we get our cut, they were meant to do this for 6 years and then the house would be sold, that part is not legally binding... it was just the original verbal agreement by the person who left us the property. As the 6 years are up the executors original role I now believe is also up (not entirely sure there but the will only covered the 6 years and final distributions) we merely rolled on using the solicitors service to collect rent and pay fees etc, so to my knowledge there is no longer any executors to consult, we have the deeds, the house is ours and it's time to make the next move.

Hopefully that makes sense.

AdrianC

So your brother doesn't keep the lodger's rent, it's paid into the trust - then disbursed, after tax and fees?

If there IS a trust, then you and he don't own it. It's owned by the trust, and you get the benefit of the income from it and/or living there rent-free. Only the trustees can sell it and wrap the trust up.

thebigpotato

AdrianC wrote: »

So your brother doesn't keep the lodger's rent, it's paid into the trust - then disbursed, after tax and fees?

If there IS a trust, then you and he don't own it. It's owned by the trust, and you get the benefit of the income from it and/or living there rent-free. Only the trustees can sell it and wrap the trust up.

The solicitor is just managing the property now and yes they redistribute the money after fees, all other matters have been dealt with I believe, we have the deeds to the house in our name and as far as I'm aware can do as we please without consulting anyone.

leespot

Does your brother have a job? Can he remortgage to buy you out?

thebigpotato

leespot wrote: »

Does your brother have a job? Can he remortgage to buy you out?

Yeah he does full time earning adequate money, he was indecisive and just completely off to the whole subject so rather than me lose my s**t i thought i'd ask advice to avoid the conflict and see if there was a easier direction, I'm not sure he even wants to live there indefinitely and overall he's looking at the situation with young eyes as he's had it so easy, imagine not paying a bill until your nearly 30 then someone says you need to buy a house, it's a big jump.