Inherited house & family

Jinnydr21

xylophone said:

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?

Ok thank you for that. I will check.

I don’t think so. He can lend her the amount going off the value at probate (which is their preference!) but probably not the current market value. I don’t know what other options would be available. 

sassyblue

OP I really feel for you, sometimes family can be the worst to deal with.  Your sister though is being extremely cheeky and is being enabled by everyone around her which is not good.

I haven’t read all the thread but would a company who do equity release be an option? Your sister could continue living there but you could release your half share of the property, the house would then be owned in 50/50 shares by your sister and the equity release company, although I’m no expert in that field.

Unfortunately, I’d stick to my guns in regards to the increased value of the house, if your sister wanted you to buy her out you can guarantee she’d expect the current market value for it on account of her having a family and needing as much money as possible, blah, blah.  She’s using your good nature and is emotionally blackmailing you but business is business. Why should she now end up with potentially more money just because she’s chosen to have children and you haven’t your needs are just as important. 

I’d tell her you need that money to get on the housing ladder yourself, and the longer she leaves it the more money you will want for your share and if she can’t afford to pay any rent now that’s her problem. She needs to grow up. Sorry but that’s just fact she’s an adult who isn’t taking responsibility for herself and her family.

ETA and yes three weeks is too long for a solicitors letter.

xylophone

Suppose the value of your share was £50,000 at date of death but is £ 70,000 now.

You might agree deferred consideration  for  £20,000 , have your father pay the balance by instalments and take a charge against the property?

I suspect though that if CGT  were due you would have to pay it at the time the property was transferred to your sister? I don't know.

Your solicitor should be able to advise.

RAS

Jinnydr21 said:

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. 

jinny

It really is not your job to maintain your father's mental health and your sister's children.

And you are not asking for more money than three years ago.

BOTH  you and your sister will receive a greater inheritance than would have been the case three years ago. She is apparently incapable of seeing the opportunity to use this to get well up the housing ladder.  Combine a low LTV and a mortgage and she and BF are well set up. It's her decision to refuse to liquidate the asset and refuse to move out of her "childhood home" that is harming her. Her lack of proper boundaries projects her problems onto everyone else.

You may benefit from some counselling yourself; I know it helped me to understand that my parent would never be happy, regardless of what I did or didn't do. And that by repeatedly rescuing them, we were preventing the crisis that would enable the professionals to intervene. The only person who could make the change was the parent.

If you are worried about your father, tell him and say you obviously need to talk to his GP, community support or whoever. And then do it, concentrating on the situation with your sister not the inheritance, as her manipulations seem to be the root of this all.

I'd be inclined to send a letter (old style)to the solicitor complaining about the delay and explaining that if they can't handle your case in a timely manner you will make a formal complaint and remove your business. And then do it.

Jinnydr21

RAS said:

Jinnydr21 said:

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. 

jinny

It really is not your job to maintain your father's mental health and your sister's children.

And you are not asking for more money than three years ago.

BOTH  you and your sister will receive a greater inheritance than would have been the case three years ago. She is apparently incapable of seeing the opportunity to use this to get well up the housing ladder.  Combine a low LTV and a mortgage and she and BF are well set up. It's her decision to refuse to liquidate the asset and refuse to move out of her "childhood home" that is harming her. Her lack of proper boundaries projects her problems onto everyone else.

You may benefit from some counselling yourself; I know it helped me to understand that my parent would never be happy, regardless of what I did or didn't do. And that by repeatedly rescuing them, we were preventing the crisis that would enable the professionals to intervene. The only person who could make the change was the parent.

If you are worried about your father, tell him and say you obviously need to talk to his GP, community support or whoever. And then do it, concentrating on the situation with your sister not the inheritance, as her manipulations seem to be the root of this all.

I'd be inclined to send a letter (old style)to the solicitor complaining about the delay and explaining that if they can't handle your case in a timely manner you will make a formal complaint and remove your business. And then do it.

Thank you, really appreciate your advice.
She is very much incapable of seeing yes. She has only ever lived with my mother so for the majority of her life has not paid any rent so has no frame of reference and no life experience. Someone of the same age would be thrilled to be able to put a huge deposit down on a house for themselves, but when you have have never paid anything out to begin with. I feel for my father in his situation and I don't want to make that worse but I now have resentment towards him because he is not being impartial and I actually think is now siding with my sister to keep the house for his own reasons. It's just being blown so far out of proportion because she is determined to stay there, it's unnecessary and I just want more than anything to be out of it all.

sassyblue

Can you do equity release? That way your sister can stay there and you get your money.

Jinnydr21

sassyblue said:

Can you do equity release? That way your sister can stay there and you get your money.

Thanks for the suggestion. I don’t know much about equity release. How would I do that?

Does the house have to be changed into both of our names to do that? It’s currently still in my mother’s name.

trix-a-belle

sassyblue said:

Can you do equity release? That way your sister can stay there and you get your money.

isn't equity release usually 55 +?
it doesn't sound like the OP or sister are in that sort of bracket, but surely it would require one (most likely the sister as that's who needs to release the money) to own the property fully. & if its going to need it to be fully transferred over, given its currently in the mothers name and bequeathed to them both equally, before the equity release can happen then that's relying on trust that the sister will follow through with the equity release but as she has so far failed to stick to agreements made to pay the OP on a regular basis to buy out her half I doubt she can be trusted to 1) complete the equity release or 2) pass over the equity release money if she did.

https://www.moneysavingexpert.com/mortgages/equity-release/

I wish you all the best OP, I understand you feeling that you must look after your fathers mental health and welfare of your sisters children but ... in case of emergency please ensure you fit your own oxygen mask first is applicable to all situations.

sassyblue

No, looks like it could be doable. I know the OP's sister is awkward but surely if the property ends up being in her sole name (along with the lender) then she'd agree to it.  The tenant usually gets a lifetime interest in the property so she need never move although I’m not sure it says that in the link below as she could be considerably younger than 55.

https://www.equilaw.uk.com/knowledge-base/inherited-properties-equity-release/

DairyQueen

sassyblue said:

No, looks like it could be doable. I know the OP's sister is awkward but surely if the property ends up being in her sole name (along with the lender) then she'd agree to it.  The tenant usually gets a lifetime interest in the property so she need never move although I’m not sure it says that in the link below as she could be considerably younger than 55.

https://www.equilaw.uk.com/knowledge-base/inherited-properties-equity-release/

Equity release is specifically designed for retired people.
Minimum age of the youngest (of a married couple) = 55. House must be owned as joint tenants by the couple.
Chance of releasing 50% of the equity until age 70+ = 0. The percentage offered by the finance company will be age-related.

Fraught with legal danger in the OP's circumstances even if the couple qualified (which I doubt).