Getting out of inherited house share

melymoos

Hi, My brother and I own half each of my late parents house. He has been living in it since our father died a few years ago. When I moved away from the area, my brother suggested we sell the property, but now he's having second thoughts and may want to stay.
I need my half of the cash tied up in the house as I want to buy my own with my partner in our new area.
My brother is over 55 and currently unable to work so, I don't know if there would be any options for him to raise the money to buy me out as I doubt he could afford any monthly repayments.
Anyone have any good advice please?

Devon_Sailor

Hi OP,

Sorry to hear about your situation. No expert, but my wife will likely be in a similar position with her brother in a few years so have given it a bit of thought!

I think if you're looking for a "standard" buy-out then by the sounds of it you may be unlucky if he's not working (or in a position to) and has no saving or other cash to purchase your half. However, as he is over 55, he would be eligible for those equity release schemes that are being widely advertised these days.

If he has no other family to worry about leaving a property to, then he may be able to release his half in cash to pay you out. There are a few ways of doing it, from effectively selling your place to the company and renting it back, or releasing money and then it all gets paid back (+ interest) when they sell the place on your death.

Worth looking into as I think on the face of it that's your only option if he is adamant about wanting to stay there and not sell. I would expect thought it's a bit like "We Buy Any Car" etc - the value you get/what its based on will be less than open market, so expect to take a bit of a hit on what your 'half' may actually end up being.

Regards
D_S

getmore4less

How is he going to maintain the place?

Sea_Shell

Has he been paying you anything, or living there for free (other than bills)?

Unfortunately, if he digs his heels in, you'll have a hard time getting it sold.

If he can't raise the 50% to buy you out, would his 50% give him enough to set him up with a place of his own?

melymoos

Devon_Sailor wrote: »

Hi OP,

Sorry to hear about your situation. No expert, but my wife will likely be in a similar position with her brother in a few years so have given it a bit of thought!

I think if you're looking for a "standard" buy-out then by the sounds of it you may be unlucky if he's not working (or in a position to) and has no saving or other cash to purchase your half. However, as he is over 55, he would be eligible for those equity release schemes that are being widely advertised these days.

If he has no other family to worry about leaving a property to, then he may be able to release his half in cash to pay you out. There are a few ways of doing it, from effectively selling your place to the company and renting it back, or releasing money and then it all gets paid back (+ interest) when they sell the place on your death.

Worth looking into as I think on the face of it that's your only option if he is adamant about wanting to stay there and not sell. I would expect thought it's a bit like "We Buy Any Car" etc - the value you get/what its based on will be less than open market, so expect to take a bit of a hit on what your 'half' may actually end up being.

Regards
D_S

Thanks for the advice, definitely something to look into! Fingers crossed he decides to sell.

melymoos

Sea_Shell wrote: »

Has he been paying you anything, or living there for free (other than bills)?

Unfortunately, if he digs his heels in, you'll have a hard time getting it sold.

If he can't raise the 50% to buy you out, would his 50% give him enough to set him up with a place of his own?

No he's there free but he pays any upkeep/repairs etc.
His half would set him up for a while rental but he doesn't want to buy anyway.
Rock and a hard place isn't it.

melymoos

getmore4less wrote: »

How is he going to maintain the place?

With difficulty. That's why he should sell and lessen the burden??

Sea_Shell

melymoos wrote: »

No he's there free but he pays any upkeep/repairs etc.
His half would set him up for a while rental but he doesn't want to buy anyway.
Rock and a hard place isn't it.

That's your problem in a nutshell. Once he realises that he might have to be fully responsible for paying for a roof over his head, either rent or owned, he's likely to not want to sell up, as he's currently on a cushy number. Does he have the cash for major repairs, boiler/roof etc. or would you have to step in any assist financially to avoid the house falling into disrepair, long term?

I think a good old fashioned chat with all cards on the table is needed here....to try any make him realise that him not agreeing to sell is VERY unfair on you, who are just as entitled to benefit from the property as he is. You could tell him you've decided to move in too!!!

If in the end he doesnt agree to sell, i think you have 2 options. Either try and agree at least an amount he should pay you, per month, in consideration of your 50% ownership, or the last resort is to go to court to force a sale, which will be expensive for everyone, and is not guaranteed, if he comes up with enough of a sob-story as to why he's vulnerable etc. and should be allowed to stay.

melymoos

Sea_Shell wrote: »

That's your problem in a nutshell. Once he realises that he might have to be fully responsible for paying for a roof over his head, either rent or owned, he's likely to not want to sell up, as he's currently on a cushy number. Does he have the cash for major repairs, boiler/roof etc. or would you have to step in any assist financially to avoid the house falling into disrepair, long term?

I think a good old fashioned chat with all cards on the table is needed here....to try any make him realise that him not agreeing to sell is VERY unfair on you, who are just as entitled to benefit from the property as he is. You could tell him you've decided to move in too!!!

If in the end he doesnt agree to sell, i think you have 2 options. Either try and agree at least an amount he should pay you, per month, in consideration of your 50% ownership, or the last resort is to go to court to force a sale, which will be expensive for everyone, and is not guaranteed, if he comes up with enough of a sob-story as to why he's vulnerable etc. and should be allowed to stay.

The big talk is the plan this weekend! Hoping it goes well.

Sea_Shell

Good luck!!! Let us know how it goes.

getmore4less

Fairly simple,

The place is getting sold.

If you want to buy it make an offer.


How far away do you live now?