Getting out of inherited house share

melymoos

scd3scd4 wrote: »

Ca you rent a room for you to get some income? See how he likes sharing.

Unfortunately not but great idea!

Sea_Shell

Did you have "the talk" at the weekend? How did it go?

melymoos

Sea_Shell wrote: »

Did you have "the talk" at the weekend? How did it go?

Yes we did and went better than expected! We are looking into equity release to buy me out so fingers crossed that it will be a good option, we're just waiting to see an adviser as soon as we can!

Sea_Shell

Does he need to raise the full 50% of the value?

melymoos

Sea_Shell wrote: »

Does he need to raise the full 50% of the value?

Well as near as we can, as long as I have a good deposit to get my own place, not going to get excited until we have all the facts though, but at least the importance of the situation has been clarified now so hopefully we can only move forward.

Sea_Shell

Are you planning on still owning the house 50/50 going forward, or is the plan for him to raise his half and buy you out and then be 100% responsible for the house going forward?

Having given this some more thought I can see that their might be a problem with ER if you're not applying for it as joint owners. (I'm sure someone will correct me if i'm wrong).

As your brother currently owns 50%, he may only be able to get ER for a maximum 50% of his 50%...ie 25% of the total value. That's assuming ER is even available on a part share.

I'm not sure if it can all be done as a seamless transaction (conveyance), for them to release up to 50% of the TOTAL value, this passes to you, and simultaneously ownership passes to your brother.

Sorry i'm just thinking out loud about how this might work for you.

Also i'm assuming that as you're looking at the ER route, he's still a bit reluctant to sell, or does he realise that t has to happen if he can't get the ER he needs?

melymoos

Sea_Shell wrote: »

Are you planning on still owning the house 50/50 going forward, or is the plan for him to raise his half and buy you out and then be 100% responsible for the house going forward?

Having given this some more thought I can see that their might be a problem with ER if you're not applying for it as joint owners. (I'm sure someone will correct me if i'm wrong).

As your brother currently owns 50%, he may only be able to get ER for a maximum 50% of his 50%...ie 25% of the total value. That's assuming ER is even available on a part share.

I'm not sure if it can all be done as a seamless transaction (conveyance), for them to release up to 50% of the TOTAL value, this passes to you, and simultaneously ownership passes to your brother.

Sorry i'm just thinking out loud about how this might work for you.

Also i'm assuming that as you're looking at the ER route, he's still a bit reluctant to sell, or does he realise that t has to happen if he can't get the ER he needs?

Hi, yes the plan is for him to have 100% of the house and buy me out.
He really wants to stay but yes he does know this is just a bit of a lifeline and that if it doesn't work we need to sell, he knows that the gravy train has stopped at it's last station so to speak.

I have a really good independent adviser that helped me with my options so we are going to see him and get all the facts and figures, see what has to be done. After the talk, all we want is to be happy and he wants me to be happy and be able to build the new life that I've started so hopefully now we can play ball and everyone can win!

mrsnobody

At age 57 I don't think your brother will be able to obtain 50% LTV with equity release (lifetime mortgage), typical LTV for that age is around 26%. He could potentially get a higher LTV with a Retirement Interest Only Mortgage (RIOM) but if he is unable to work he probably won't pass affordability. Your adviser will be able to confirm the figures though.

Sea_Shell

Out of interest, how much is the house currently worth / how big is it? (you don't have to answer of course)

Even if your brother is able to buy you out...will he be able to cope with the property? 3,4,5 bedrooms??

With size comes expense!!

melymoos

Sea_Shell wrote: »

Out of interest, how much is the house currently worth / how big is it? (you don't have to answer of course)

Even if your brother is able to buy you out...will he be able to cope with the property? 3,4,5 bedrooms??

With size comes expense!!

It's a 4 bed but to be fair it's always been that it's having a bit of something done to it at any time. We are a family of builders/joiners so costs are far less than for the average house owner. He is fully aware of the task of keeping the place, he's been there 6 years already and it has been in the family for around 40 years so it's not like he's staying there blind. That's why I can see why he doesn't want to let go but also to me seems one of the biggest reasons to sell.