Inheritance dilemma

Sea_Shell

@ValleyField1973

I hope you get a chance to come back and let us know how "negotiations" are going.

Titus_Wadd

Just caught up on this thread.  On 3 occasions my own sister and in-laws family circumstances have been similarly impacted and my advice would be to gently nudge her towards buying you out with a small mortgage.  Relatives bound by money loans find the family bonds severely stressed.  A mortgage from a bank will be paid on time, whereas a personal mortgage can easily slide. Promises at the outset can set up this arrangement for failure and you and your sister's relationship may become strained and damaged by it.
In our extended family the compromise to help the "stay at home sibling" has ended in tears in 3 different ways.  Closest to the OP's scenario: my sister-inlaw felt that because her brother had a well paid job the term of the loan could be stretched when her funds were short.  For one thing, she hadn't realised how much the house took to run or she needed a bill paying or repairs etc. She seemed, in middle age, to think siblings should be equal (like getting a gift when it's her brother's birthday): he got a car, she was entitled to a car upgrade.  It sounds farcical and in other respects she's a sensinble single woman in her 50s with a good job, but if we earned more and moved up the property ladder it was resented, and still is.  
OP,  yours and your sisters scenario rings loud alarm bells for me.  Where is the sisters consideration for your circumstances in her outlook? She is putting strain on your relationship as sisters and your marriage.  She has a pefectly acceptable solution to make the house hers with a mortgage. 
My brother is 68 and after getting divorced has been able to get a mortgage offer to buy a new place,  the mortgage lender takes into account the house' worth and if he dies before it's paid off the proceeds of the sale will clear the mortgage balance.  OP's sister might need a broker to help find a suitable mortgage product.  If the sister wants a rainy day fund she could increase the amount borrowed, or remortgage in a couple of years.  She will feel she owns it outright, you can go back to just being sisters so I'd recommend a  clean break!

diystarter7

Not read through every post but OP it is your money and that of your sisters. Ignore your OH if you are happy what sis is saying.

london21

Personally think it is better to sort it out earlier than later than have it lingering on for a very long time.

She is focusing on her own needs but need to make a fair decision for both of you.

You can communicate with your OH that you understand his point of view but to allow you both to sort out the issue yourselves. 

Exodi

ValleyField1973 said:

My sister doesn't want to get a mortgage and is dead against it.

That's weird, everyone I know was absolutely desperate to get themselves into hundreds of thousands of pounds of debt to a mortgage company. Even from a young age I use to say to my mum "when I grow up, I want to be mortgaged up to my eyeballs", and look at me now, living my dream.

No-one wants to get a mortgage. Most people just can't convince their siblings to give them a wodge of cash interest free for decades.

It's also odd that everyone assumes the OH is a husband, and that they're out of line. Implicit bias, me thinks. The OH is clearly concerned about his partner being taken for a ride, which virtually all of us have identified appears to be the case.

sheramber said:

If she can't afford to pay a ten year mortgage how many years does she intend to take to repay you?

I think many of us have been on this forum long enough to know how this story ends.

All it would take is one argument and this will never be paid back. Borrowers are very quick to transition from grateful to resentful.

Stateofart

I would possibly raise with sister that a 'clean split' now means that everyone is protected.  What happens if yuo fall out and sister doesn't want to repay in future?  Similarly, what happens if YOU force a sale later?  So that everyone can sleep better at night, split it now.  If she needs to get a mortgage, so be it.  She'll then own the house outright and have no one to answer to.

getmore4less

Just read this 

OP says the sis has nearly enough to cover the £80k so probably only need to borrow £20k  off bank or sis to keep some back.

With 20years £1k a year should not be an issue

Just wondering if she has had low living costs for years and now the reality is kicking in houses cost money.

Probably room for lodgers.

biggysmaller

Stateofart said:

I would possibly raise with sister that a 'clean split' now means that everyone is protected.  What happens if yuo fall out and sister doesn't want to repay in future?  Similarly, what happens if YOU force a sale later?  So that everyone can sleep better at night, split it now.  If she needs to get a mortgage, so be it.  She'll then own the house outright and have no one to answer to.

I agree with this. I think the beat solution is to have a contract drawn up ny a solicitor then there can be no disputes in the future.