Family home is willed to myself and to brothers. Can I Buy them out and Rent it back to them?

Chickusdickus

Hi all.  My mother recently passed away leaving my father and brother in the family home.  We also have a Step brother and the 3 of us are willed the house.  My brother wants to continue living there after our father passes, so I'm trying to figure a way this could be done as he is currently on the sick and not working and has no career or permanent job to return to.

The only option I can see is if I buy my brother and step brother out of their share.  I am assuming for instance that if the house is worth 90k (3x30 each) then can I get a Mortgage on the property of either 90k or 60k and pay each of them 30k then taking rent from my brother to stay there?

I've no idea what process occurs upon my father passing.  Does it go to probate? Will I even have the opportunity to take a mortgage on the property?

Any advice would be greatly appreciated.

Thanks.

Keep_pedalling

I can understand buying your step brother out, but why would you want to buy the resident brother out rather than have him retail 1/3rd of the ownership?  

sheramber

You say are ‘willed the house’.

Does that mean that the three of you currently own the house and your father and brother live in it?

If not, who owns the house?

p00hsticks

What is happening with father ?
From what you say he did not appear to have jointly owned the 'family home' with mother  and was not left a share of it but is living there? 
Did your mothers will leave him a right to reside ? 
Was the house only in your mothers name ?

Mark_d

Your brother wants to stay living there.  What do you want?  What does your step brother want?  Does your father have any ownership of the property?
When my parents pass I'm going to press to sell my 1/3 of the property.  My brothers have buy me out of we can sell the property and split the gains.  I don't want to jointly own property with my brothers, neither do I want to live with them.

elsien

I am reading this is the children get a third of the house when dad passes although it’s very unclear. I can understand the OP not wanting to leave the house in joint ownership as it gets complicated if one wants to sell in the other refuses. 

You would need a buy to let mortgage and you would need to make sure you fully understood all the provisions of being a landlord and you would have to consider evicting your brother if he failed to pay the rent or if you needed him out for any other reason - splitting of assets in a divorce or in case of sickness or unemployment yourself for example. 

He has little gain because he would actually be giving up his security. 

marcia_

 If he receives benefits he won't be able to claim anything towards his rent on a house he partly owned and is now renting from a family member. 

Savvy_Sue

People do sometimes 'want' something which is neither fair, nor practical, and you have to get hard-headed and ultimately hard-hearted about things. 

In a time of grief, people don't always want to contemplate any change, and that's understandable. 

However, it's sometimes because they just can't contemplate any change, rather than because no change is possible. 

Would 1/3 of the house proceeds enable your brother to buy something perhaps more suitable for his needs? If he's in poor health, is he of an age where he would be eligible for sheltered accommodation, which he might be able to rent? Wherever he's living, would he be able to pay utility bills etc? 

What's Dad's life expectancy and state of health? And, as above, does he have the right to remain in the house for now? You may not need to do anything immediately.

Chickusdickus

Keep_pedalling said:

I can understand buying your step brother out, but why would you want to buy the resident brother out rather than have him retail 1/3rd of the ownership?  

How can he retain a 3rd if it's Sold to share it out?

elsien

marcia_ said:

 If he receives benefits he won't be able to claim anything towards his rent on a house he partly owned and is now renting from a family member. 

Good point. Even if you buy him out completely you need to read up about contrived tenancies and renting from family.

Chickusdickus

sheramber said:

You say are ‘willed the house’.

Does that mean that the three of you currently own the house and your father and brother live in it?

If not, who owns the house?

No, it means the house was in both my parent names but there is a will for the house to be sold/shared between the 3 brothers.  My father and brother still live in it.  My SB has his own place as do I.