Buying a siblings share in a house

greatcrested

* Have you been appointed as the Administrator?

* have you applied for/obtained Probate/

* have you valued the Estate, dealt with tax/ HMRC?

* how was the property valued?

* why are you paying council tax? - the Estate pays, not you

* why are you paying council tax?  - if dad was the sole owner/resident, the property is CT exempt

* why would this be classed as a 2nd home? It is (presumably) in dad's name therefore CT is paid by the Estate (if at all). It won't be your 2nd property unless/until Probate is granted and the Estate wound up and the property transferred into your name.

* why would the property be transferred into your name if you are trying to sell it?

* As for the value and what to pay your sibling, how was the £130K arrived at? One estate agent? 3 EAs? a proper RICS valuation? Your own research of local sold prices (not advertised proces)?

* Your brother is not entitled to half the property sale price - he is entitled to half the value of the Estate after it is wound up ie the property sale value + dad's car, watch, helicopter/other possessions, minus Estate costs eg property selling costs, house expenses (utilities, insurance, council tax etc), mortgage repayment, other debts (eg credit card etc).

* You need to do a detailed account of the entire Estate finances.

xylophone

Have you been appointed as the Administrator?

It would seem so from OP's first post.

He mentions the house but not the value of anything else in Dad's estate.

If there was little money and the  sale value of chattels was minimal,  so that OP has needed to pay ongoing expenses from his own pocket, he should carefully itemise these   and make it clear to his brother that he is entitled to recoup them  - in this case, set them against the amount he is to pay to buy his brother out.

Bonniepurple

When my brother bought me out of a shared inherited house he based it on what it was worth at the date of the death, and has offered (his choice) to pay me more if there is a large difference in value when he comes to sell it.  Could you do similar so it would be a case of “here’s X now, if when I sell/remortgage the value is more then I will give you half of the difference.  If the price is less then I will not chase you for a repayment.”  Just get it n writing!

Shivva

I am executor of the estate, I've been arguing with the council about the council tax for ages and for the buildings insurance and home insurance to be valid there had to be furniture in the house which was good because we weren't in a position to store it or share it so that's why they are classing it as second home which is so selfish. The house is up for auction sale for 130k but we have only had 1 offer and that was for 100k which is the price I have gone by because house been on market since end of November. Brother thinks that cas it was valued at 130k last year that its still worth that even though property has dropped by 12% in that area. Its really hard to know what to do

greatcrested

I don't see how the council can possibly claim it is a 2nd home unless you've transferred  it into your name(s). And if you are selling it, why would you have done this?

If it is still registered in the deceased's name, it is exempt from CT, furnished or not.

Mojisola

greatcrested said:

If it is still registered in the deceased's name, it is exempt from CT, furnished or not.

With our council, it would exempt until probate is granted and then they can give (but don't have to) a six month exemption as long as the house is empty and still in the deceased's name.

After that, CT has to be paid.