Completion: Buying out siblings

E201

Thanks to you all for your comments. I've read them all and they have given me some ideas so many thanks.

Because of the £10k increase suggested by my siblings lawyer (no doubt with their agreement) I have now decided to pull out of the deal. I should have mentioned in my opening comment that the house is 58% owned by me and the remaining 42% shared between 5 siblings. Can someone let me know if I will be liable for any of my siblings legal fees in the event of me withdrawing my offers and going to the open market to sell?

Thank you for your advice.

Flugelhorn

E201 said:

Thanks to you all for your comments. I've read them all and they have given me some ideas so many thanks.

Because of the £10k increase suggested by my siblings lawyer (no doubt with their agreement) I have now decided to pull out of the deal. I should have mentioned in my opening comment that the house is 58% owned by me and the remaining 42% shared between 5 siblings. Can someone let me know if I will be liable for any of my siblings legal fees in the event of me withdrawing my offers and going to the open market to sell?

Thank you for your advice.

no - if there is no exchange then they are liable for their own legal expenses. they are going to have to agree to the property being sold to someone else now I presume so maybe the lawyers will just hold the file until it is sold as there will continue to be expenses then

propertyrental

As above - their legal fees are their problem.

Quite how they plan to sell the property to someone else, god knows. Any sale will require your agreement, and doubtless you withhold agreement unless the price is right (for you.....)

As an aside - who lives in the property (or has lived there and when?)? There may be CGT to pay by anyone for whom it was not their main residence....

BikingBud

E201 said:

Good afternoon, 

I am being faced with a situation that I haven't experienced before. 

My siblings and I have agreed on the price of our family home (£825,000). There have been some delays with drawing up documents due to lawyers being on holiday. My siblings' lawyer gave a 2 week notice to finalise the completion by today (31 July) or they will raise the offer by £10k. I'm totally confused by what to do and feel somehow betrayed. I have a call with my lawyer in the morning so any tips or advice would be greatly appreciated.

Best wishes

I'm a little confused perhaps I'm missing something even after this:

Thanks to you all for your comments. I've read them all and they have given me some ideas so many thanks.
Because of the £10k increase suggested by my siblings lawyer (no doubt with their agreement) I have now decided to pull out of the deal. I should have mentioned in my opening comment that the house is 58% owned by me and the remaining 42% shared between 5 siblings. Can someone let me know if I will be liable for any of my siblings legal fees in the event of me withdrawing my offers and going to the open market to sell?
Thank you for your advice.

You have a shared ownership house.

You have 58% and your siblings own the other 42%

You want to buy them out and agreed a price for the house, £825000.

You say raise the offer but they are not buying so why is it their offer.

Do you mean they want to increase the valuation price by £10K? about 1.2%

Based upon the split 58/42% that would give them about £4200 split between 5 of them = £840 extra each before any additional costs.

I'd say crack on and consider if they are really going to fall out over £840 each then that might be a relationship that is not worth working to sustain.

Unsure how you can go to open market without their endorsement or adding additional, perhaps unnecessary, legal fees.

I would gift wrap a £1000 for each of them and tell them to keep the change.

E201

Thanks BikingBud for the reply.

My sibling’s lawyer has suggested that £10K is added to the agreed valuation price of £825K to £835K. Your calculations are all correct. When you say ‘crack on’ do you mean that I should go ahead with £825k and then give them £1000 each as a kind of gesture of goodwill. It does make sense and sounds reasonable.

propertyrental

There is no justification for the increase. Instruct your solicitor to proceed based on the agreed valuation of 825 or to cease work.

Personally I'd be tempted to insist on a reduced valuation of £851 but I hate gazunderers. As for family gazundering? No way!

Gentoo365

I would be tempted to refuse but tell your lawyer to just hold on a bit.

Hoping that they all argue amongst themselves and ultimately agree to go with the original amount.

However it does depend a bit on the backstory. If there are wider issues which mean any future sale could involve arguments, hassle and possible legal costs I can see some value in paying a bit extra to get it 'done' so you can move on with your life.

E201

Thanks Gentoo365- that’s also a very good point

Hoenir

E201 said:

My sibling’s lawyer has suggested that £10K is added to the agreed valuation price of £825K to £835K.

Unusual thing for a solicitor to suggest. Think that you are being told porkies.