Buying siblings share of house

Hopeful1971

Hi. My husband and I would like to buy my late MILs house but it needs substantial renovation much of which would need to be done before we could live in it. We intend funding the purchase from the sale of our current house which we have already put on the market (we have enough equity to buy the other house outright). The problem is we couldn't start doing the work until the house is in our name. If the other siblings agreed, is it possible for ownership to be transferred to us to allow us to begin the work and perhaps a "charge" put against our current home to pay the estate once we've sold ours? Thanks

TBagpuss

Possibly, but then you would have to work out what interest you would be paying to the siblings, or whether they are going to get paid out on the increased vcalue once you have done the work.

probably much more sensible to wait until you have the funds available, or alternatively, remortgage your property to raise the funds and sell later.

Mojisola

Hopeful1971 wrote: »

Hi. My husband and I would like to buy my late MILs house but it needs substantial renovation much of which would need to be done before we could live in it.

We intend funding the purchase from the sale of our current house which we have already put on the market

How long is it taking for houses in your area to sell?

Have you set a reasonable price so that it will go quickly?

Why not ask if your siblings will wait for their inheritance until you've sold the house? Maybe sweeten the offer with some extra money for their shares.

If the executors were having to sell MIL's house to give you your inheritances, you'd all have to wait.

Hopeful1971

Hi. Thanks for the responses. Houses in our area sell fairly quickly (around 2 months) - definitely faster than the area of the other house and we have set ours just at the home report value (Scotland), no higher. We certainly wouldn’t be spending circa 30k on renovations then splitting the increased value with the other siblings! They have all said they would be happy to wait on the money as they’re likely to get it faster this way than waiting in a general sale. The problem is, we can’t wait until the deal is done as the other house isn’t habitable so we’d be temporarily homeless which we can’t risk. I’m just really wondering if all siblings were happy with the agreement (one of whom has been appointed executor as there was no will) then would there be any legal reason we couldn’t do this? We’d also be saving everyone the marketing and selling fees for the house. We would be liable also for the council tax and house insurance once it was transferred which is currently be being paid out of the estate so those would be the sweeteners as well as us doing essential repairs to the roof/chimney which can’t wait so again would have to be paid from the estate.

SeniorSam

The other beneficiaries may be prepared to accept a legal charge on your own property to safeguard their interests in the event that your property does not sell and possibly with some interest being payable. That would seem to be fairier than just asking for the benefit on your side only? Solicitors could draw up the legal charge with you paying for the documentation. Does that seem fair to you?

badger09

Assuming the other siblings agree, I'm not clear why you can't start the renovation work until the house is in your name?

How do you propose to pay for this work?

xylophone

Is there a mortgage on your home? If so, have you checked with the mortgagees about their view of a second charge?

Fire_Fox

Hopeful1971 wrote: »

. The problem is, we can’t wait until the deal is done as the other house isn’t habitable so we’d be temporarily homeless which we can’t risk. I’m just really wondering if all siblings were happy with the agreement (one of whom has been appointed executor as there was no will) then would there be any legal reason we couldn’t do this? We’d also be saving everyone the marketing and selling fees for the house. We would be liable also for the council tax and house insurance once it was transferred which is currently be being paid out of the estate so those would be the sweeteners as well as us doing essential repairs to the roof/chimney which can’t wait so again would have to be paid from the estate.

Rent a property to live in whilst the renovations are completed. What you are proposing requires quite a lot of unnecessary, costly and potentially time consuming legal work. Your mortgage provider, if you have one, would have to agree to the charges (one for each sibling) on your existing property.