Inherited house & family

RAS

Your sister will not be homeless.

She will inherit either a substantial deposit on another house (given the price increase you suggest 50% of a lot more is going to be much  what she would have got previously) or enough to rent very nicely for several years if that's her preference.

it's just that either way she'd have to sharpen up her financial management as neither a landlord or mortgage provider will accept her failure to pay the required monthly fee.  OK, with Covid, it may be that her family income has taken a hit, but there are formal procedures to deal with that.

Jinnydr21

Thanks for your reply. 

The non payment is actually nothing to do with covid. She basically believes it is her house and my father is corroborating so there is no incentive to pay.

It’s beyond frustrating and upsetting. 

My father is not doing so well so I have the weight of his mental health, welfare of  her children all being put on my shoulders just because she won’t move. 

kuratowski

I'm no expert but isn't there a Capital Gains Tax issue here.  As I understand it CGT is due on your share of the house at the time of disposal, based on the increase in value between the date of death and the date of disposal.  And if you sell your share for a knock-down price to your sister, CGT is still based on the market value not the knock-down price.  This could leave you paying CGT on a gain which you haven't fully realised?  Hopefully somebody will correct if I have misunderstood things...

Ratkin007

you have been more than reasonable. it is your sister that is unreasonable and gets the sympathy as it is "her home".  I had a situation whereby I moved in with fella and let my property to my sister, she paid no rent (I allowed it). My circs changed, I moved in with my brother, reduced salary, increased outgoing.  I told her how much I was being paid and what my outgoings were (included housing costs to bro and mortgage) she made a couple of payments then stopped. Down the line I told her I wanted my house back. Her response "when you moved out, you said you would go private rented if things didn't work out and not kick me out. If I can't trust your word who can I trust, guess I'm a mug" By that point I was already prepared not to speak to her ever again.  She felt hard done by, breaking a written contract and living in a house for more than 3 years rent free, no concern for my finances/living situation. 
Your sister is living rent free, why would she want to move, take responsibility and have to commit to housing costs. If it helps do a letter to her and your father. yes you "got the property for free" so did she. outline that you both inherited and she should have paid x amount in rent which you have not insisted on and put in your point of view acknowleding her situation. The only way she "and possibly dad" will be happy is if she gets what she wants and even then she will still feel she has been treated unfairly. In terms of what she would do if roles were reversed, it goes without saying "she would allow you to stay" easy to say when not in the position. And make them aware of your CGT liability if that is the case. 

Ratkin007

Basically your sister is taking the living mick and is probably taking advice from like minded people who will quite happily live off others. 

Jinnydr21

kuratowski said:

I'm no expert but isn't there a Capital Gains Tax issue here.  As I understand it CGT is due on your share of the house at the time of disposal, based on the increase in value between the date of death and the date of disposal.  And if you sell your share for a knock-down price to your sister, CGT is still based on the market value not the knock-down price.  This could leave you paying CGT on a gain which you haven't fully realised?  Hopefully somebody will correct if I have misunderstood things...

I suspect you are correct but I don't know! If she were willing to buy my share at the market value right now then I would do that just to end all this, surely I can't be expected to sell it at the value it was 3 years ago when she hasn't paid anything for a year in addition to the free rent. 

xylophone

Have you obtained a current open market valuation?

Jinnydr21

xylophone said:

Have you obtained a current open market valuation?

Yes exactly

squirrelchops2

Ratkin007 said:

you have been more than reasonable. it is your sister that is unreasonable and gets the sympathy as it is "her home".  I had a situation whereby I moved in with fella and let my property to my sister, she paid no rent (I allowed it). My circs changed, I moved in with my brother, reduced salary, increased outgoing.  I told her how much I was being paid and what my outgoings were (included housing costs to bro and mortgage) she made a couple of payments then stopped. Down the line I told her I wanted my house back. Her response "when you moved out, you said you would go private rented if things didn't work out and not kick me out. If I can't trust your word who can I trust, guess I'm a mug" By that point I was already prepared not to speak to her ever again.  She felt hard done by, breaking a written contract and living in a house for more than 3 years rent free, no concern for my finances/living situation. 
Your sister is living rent free, why would she want to move, take responsibility and have to commit to housing costs. If it helps do a letter to her and your father. yes you "got the property for free" so did she. outline that you both inherited and she should have paid x amount in rent which you have not insisted on and put in your point of view acknowleding her situation. The only way she "and possibly dad" will be happy is if she gets what she wants and even then she will still feel she has been treated unfairly. In terms of what she would do if roles were reversed, it goes without saying "she would allow you to stay" easy to say when not in the position. And make them aware of your CGT liability if that is the case. 

This bit resonates so strongly with me. I have a rather tricky situation with my half brothers and a friend asked me just this - 'if roles were reversed what would they do' and I know 100% they wouldn't give 2 figs about being fair to me. Sad but true.

xylophone

At the moment the property still stands in the name of the deceased.
It is more than three years since the death of the deceased and the obtaining of LoA.

I think that you should check out the CGT situation with your solicitor - see  https://www.co-oplegalservices.co.uk/media-centre/articles-jan-apr-2017/capital-gains-tax-payable-by-executors/

Is your father in a position to gift or lend your sister half the current market value of the property?