Inheritance dilemma

Savvy_Sue

SadieO said:

I'm 44 and have just been approved for a 25 year mortgage with no issues whatsoever. Broker just mentioned it might start to be an issue when you get to the term taking you over 70 years old. 

My experience is similar: our latest mortgage was taken out when we were a similar age and comes to an end when we're nearly 70. What's more, some providers are happy to give 'later life' mortgages, taking pension income into account. Yes, a 10 year mortgage may be expensive, but there's no earthly reason she shouldn't get a longer term. Using a broker could be worthwhile. 

Would it be worth you and she taking some financial advice where the options can be discussed? Do NOT involve your husband, but make it clear that you would like the matter settled now and not over the course of several years. 

Gycraig

She is completely taking the !!!!!! out of you, why should you subsidise her with an interest free loan for years, just because she lived in the house when your mum died. 

She needs to get a mortgage or get sell the house, she is completely mugging you off. 

sevenhills

The house is of considerable value, but your sister never moved out.
So she is attached to the house, is it a large house and is she on her own?
I understand your husbands concerns and I tend to agree with him, but it's your decision if you want to allow your sister to keep the house. But it sounds like she cannot afford it. Was she paying money to your parents for living there?

It's easy to let things go if you are getting a large inheritance. Maybe your sister will thank you in later years, if you force her to downsize now.

kaMelo

I completely understand the majority of posts here, in the cold light of day as an outsider looking in it's easy and probably the correct thing to suggest sorting this out sooner rather than later even if it means your sister taking on a mortgage to pay you your half of the inheritance.
However I'm going to go against the grain as I was in exactly the same position as you thirty years ago. Adult sister still lived at home with mother who sadly died relatively young. Other than the house there was very little else in terms of inheritance and absolutely no way sister could get a mortgage to pay me my half. My choices were pretty simple, force through a sale to get my half or do nothing and accept it would probably be my children who would inherit my half.

I chose to do nothing and accept it will probably be my children who would inherit and thirty years later I haven't regretted it for one second.  For sure it lead to some interesting discussions with my OH who, like the majority of posters here, thought it should be sorted out quickly so I wasn't taken advantage of but eventually understood and accepted why I chose to do nothing. Forcing through a sale would essentially make my own sister homeless and I just couldn't do that as family is more to me than money will ever be.

The only thing I would add if you choose to do nothing then for your own peace of mind,  your expectation should be that you won't receive what you're owed and anything you do receive is a bonus.

Keep_pedalling

kaMelo said:

I completely understand the majority of posts here, in the cold light of day as an outsider looking in it's easy and probably the correct thing to suggest sorting this out sooner rather than later even if it means your sister taking on a mortgage to pay you your half of the inheritance.
However I'm going to go against the grain as I was in exactly the same position as you thirty years ago. Adult sister still lived at home with mother who sadly died relatively young. Other than the house there was very little else in terms of inheritance and absolutely no way sister could get a mortgage to pay me my half. My choices were pretty simple, force through a sale to get my half or do nothing and accept it would probably be my children who would inherit my half.

I chose to do nothing and accept it will probably be my children who would inherit and thirty years later I haven't regretted it for one second.  For sure it lead to some interesting discussions with my OH who, like the majority of posters here, thought it should be sorted out quickly so I wasn't taken advantage of but eventually understood and accepted why I chose to do nothing. Forcing through a sale would essentially make my own sister homeless and I just couldn't do that as family is more to me than money will ever be.

The only thing I would add if you choose to do nothing then for your own peace of mind,  your expectation should be that you won't receive what you're owed and anything you do receive is a bonus.

I think in your case you made the right decision, but in this one it seems the sister can afford a mortgage but is simply refusing to contemplate it. If the OP is inclined then she could compromise and simply let her sister have full ownership and cover the shortfall with a charge against the house. This would in effect be a interest free loan repayable if the house was sold or the sister died. Not ideal but it would provide some closure.

Ath_Wat

sammyjammy said:

Ath_Wat said:

Not entirely sure why everyone is assuming OH is male.  Have I missed it?

Does it really matter?  I am sure the OP is not offended if some have assumed incorrectly.

Not really, but why is everyone insisting on saying "Husband" and "he" when the OP has said "OH" and "they" throughout?  Men can have sisters too.

SusieT

Could you put a charge on the house to the value of £80k, make an agreement between you both that you will get interest at x% added to the outstanding if the house is sold, and have her repay you at £x a month rather than a mortgage? Then tell OH (in a nice way) to butt out, and that it is sorted between you?

JReacher1

I would point out to your sister that until she pays you the money she owes you then you still own your share of the house which could very likely go up in value. So the £80k she owes you now could be £100k in 2-4 years. It’s in her interest to pay you what you are owed to ensure she has full ownership of the house. 

lr1277

Can you put a charge on a property based on a % of its value?

Or you change the ownership to tenants in common where you can specify the % of the property you own.

TBagpuss

ValleyField1973 said:

Both my parents passed away in the same year and I am trying to deal with the inheritance. There were no wills but letters of administration have been granted with me & my sister having been named on them. 

There is a house which they owned and is mortgage free. My sister never moved out and she is adamant that she wants to keep the house as it is very much her home & the only place she has known. 

There is also some money, but it is less than the value of the house by about £80,000. 

My sister & I have agreed that I will have the money and whilst she will keep the house, she will buy me out so that there is an equal division. The issue though, is that whilst she has some money saved up that is close to the sum needed, but she wants to keep some back as otherwise she will no money for any unexpected bills. 

Now I'm happy for her to give me what she can and to then gradually pay off the remaining sums. My OH however, is not happy with this and is absolutely insistent that she should either pay the full amount of £80,000 straight away or the house is sold because I otherwise it isn't fair & I'm losing out.  I trust my sister and she has never done anything to make me not trust her and she has a stable job and we have devised a payment plan. 

OH keeps pushing the issue and keeps asking me to ask her for the money that she does have as they don't want this lingering on any longer than necessary as we all need to move on & I'm losing out. 

As it is causing arguments, I have bent the truth with my OH telling them that my sister has transferred the majority of the money because every-time I'm on the phone to her, OH is pushing me to ask her about it. 

I feel really bad about bending the truth and I know it may cause a big explosive argument further down the line but I just don't want to keep having the same conversation and in all honesty I'd rather have my parents back than the money. 

Guess I'm just venting and I know that I'm bad person for what I've done. 

I think on the relationship side you probably need to come clean to your OH as soon as possible, but perhaps at the ame time explain that you appreciate that they are wanting to make sure that you are not taken advantage of, for you this is as muh about your relationship with your sister as it is about the money and that you need them to trust you to make the decision that's right for you, even if it may not be the most finacially advantageous one. ALso perhaps discusswhether they have any specifc concenrs beyond 'it's not fair'. 

SO far as your sister is concerned, I would recommend that you ensure that any agreement you come to is in fact fair - wehter that means that she pays you interest until the full sum is repaid, or whether you have a converdation where you ecplain that you understand that she's prefer not to get a mortgage but that you don't fel it's reasonable for you to be effectively lending her the money instwead, particularly if she is xpecting you to do so without gettting any interest. 

Perhaps one option would be for her to retain a small amount of her savings (maybe £10,000) for energencies and pay you the rest as a lump sum, and then to have an arrangments for her to pay off the balance within a fairly short period of time and on the basis that she pays you simple interst on the outstanding balance - perhaps an agrement that it would be cleared within 2 years? 
That would allow her to plan ahead, to eoither get a mortgage or look at other options toriase ethe money, if paying mlonthly installments won't clear it, and it has the advantage of getting things sorted relatively quickly and giving both f you most of what you want.

If she wants you to lend her the money for onger then I would insist on it being secured by a charge over the property and expressed as a % of the property value, so you effectively invest your money in the hous, and get a return on it if the property goes up in value.