Inheritance "buying out" advice

Ratmouse

Good Morning guys 

Im looking some guidance regarding inheriting a house and "buying out" a sibling, ill try to keep this as factual as possible for simplicity ( bereavement is difficult enough to deal with without dealing fin finances).
so my sibling an i inherited the family home of which we both reside in currently. probate has been granted. we agreed that we would like to not continue to cohabit the house. 
Id like to keep things as simple as possible and foresee if we sold the house then trying to coincide this with the purchase of two additional properties would prove troublesome.(unless I'm wrong and  this is not really going to be an issue?) 
So i have a couple of thoughts /questions. 

would my "half" (its my understanding we technically share part of the full house) be considered as "deposit"  for a mortgage. I don't see obtaining this as being to much of an issue.  
 
would this mortgage need to be with some sort of specialist for this reason? 

as I'm unsure if id want to keep the house or move on what would stop me selling on almost instantly buy somewhere else?  

is this the point i should be seeking professional advise? i just want to keep this whole thing as simple and fair to both as possible. 

 thanks guys appreciate any advise 

Flugelhorn

Have you actually changed the name on the LR to your names or is it still in the name of the estate? 

Do you really want to live there or would you prefer your own place ? - what does your sibling want to do?

Most people wold sell the place while it was part of the estate, split the money and then buy their own places 

RAS

There is no right or wrong, or legally required solution to this, but some additional information would help.

Is the house currently mortgaged? 

What's the rough value? 

Is the house currently still in the name of the executor? 

Would half the value of house be a decent deposit on another property locally? 

Can either or both of the siblings afford to get a mortgage on another property? 

Do either of the siblings want to stay in the house?

BarelySentientAI

Ratmouse said:

would my "half" (its my understanding we technically share part of the full house) be considered as "deposit"  for a mortgage. I don't see obtaining this as being to much of an issue.  
 

You can't use half a house for a deposit on a different house.  You can use half the money you would get from selling the house as a deposit, as long as the sale happens before or at the same time as the purchase.

You can consider the equity (your half) as 'deposit' if you plan on taking a mortgage to buy out your sibling and stay in the house.  That's a pretty normal thing.

Is there a mortgage at the moment?  Sounds like you think you could afford a mortgage big enough to buy the other half though.

Ratmouse said:

Id like to keep things as simple as possible and foresee if we sold the house then trying to coincide this with the purchase of two additional properties would prove troublesome.(unless I'm wrong and  this is not really going to be an issue?) 

That's just making a chain, the same as happens in thousands of other property transactions.  The bigger the chain, the harder it is to co-ordinate of course, but essentially this is 'normal'.

Ratmouse said:

is this the point i should be seeking professional advise? i just want to keep this whole thing as simple and fair to both as possible. 

Simplest would be for the estate to sell the house and split the cash between the beneficiaries.  That does, however, rely on the house being unoccupied and it seems like that would require you both to go into rentals / lodgings.

First thing to consider is do either of you actually want that house?  You are clear you don't want to co-habit, but do either really want to stay?

FreeBear

RAS said: Is the house currently still in the name of the executor?

And if the house is still in the name of the executor or original owner, have you owned a property elsewhere yourself ?

If you haven't owned another property and your name isn't on the deeds for this house, you would be classed as a first time buyer. That comes with a few financial advantages (reduced/zero stamp duty for starters).

Ratmouse

thanks guys really apricate the help 

 the LR has not been changed 
 there is no mortgage left on the property which the value is around 280k 
 the property is in the name of the original owner as probate has just been granted (the executors of the estate are both parties actually both parties) 
I'm certainly in a position to obtain a mortgage I'm unsure of my siblings financial position (i have asked what their plan was sadly that info wasn't that  forthcoming) 
 
interesting i think i would be a first time buyer (annoyingly i closed my first timer buyer isa under the belief i no longer would be classed as such) 

i guess the "chain" wouldn't be dissimilar to a splitting couple who had to purchase separately 

other than stamp duty and  mortgage costs what would be the downsides to purchasing myself and moving on in say a years time? 

FreeBear

Ratmouse said: other than stamp duty and  mortgage costs what would be the downsides to purchasing myself and moving on in say a years time?

You get to say who you share the house with. No arguments about decor or furnishing.

RAS

If you wanted to move on in a year, you'd not want a mortgage fix. Given SDLT, mortgage costs and legal fees, you might be better if your sibling bought you out now. 

Do they want to? Or do they want a bit more time to grieve?

Ratmouse

RAS said:

If you wanted to move on in a year, you'd not want a mortgage fix. Given SDLT, mortgage costs and legal fees, you might be better if your sibling bought you out now. 

Do they want to? Or do they want a bit more time to grieve?

 

quite possibly so, its quite awkward at the moment id consider just dealing with the aforementioned costs just to move on. 

no they defiantly want t leave. 
  

Bookworm105

Ratmouse said:

no they defiantly want t leave. 
  

then the issue is where will you live if it was to be sold now and you each go your own way

sibling presumably wants the money from their inheritance "now" and so if you want to live there you have no option but to buy then out by getting a mortgage in your own name on that property.
Getting such mortgage when you "know" you want to move on in as little as 1 year's time could turn out to be a very expensive proposition for you in terms of fees for buying and selling plus early redemption of the mortgage. Might make sense to pay a mortgage broker to find a loan based on a "short" time line.

(or you simply both sell up now and you each move on immediately, perhaps into a short term rental if you can't time your own onward purchase to suit that )