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

Chickusdickus

elsien said:

mattojgb said:

If the house is specifically left to be jointly owned by the three of you then the brother can just carry on living there for free. Why would he need to be bought out?

Post before yours says the house is to be sold and shared. I think it is the proceeds that are being left equally between the three, not the property itself. 

Yes, sorry, I'm not sure of all Legalise and literary meanings.

The house will go to my Step Brother, but the Will states it is to be Sold and shared Equally.

But I may propose I buy the house, Rent it to my Brother and pay a share to each of them.

marcia_

Chickusdickus said:

elsien said:

mattojgb said:

If the house is specifically left to be jointly owned by the three of you then the brother can just carry on living there for free. Why would he need to be bought out?

Post before yours says the house is to be sold and shared. I think it is the proceeds that are being left equally between the three, not the property itself. 

Yes, sorry, I'm not sure of all Legalise and literary meanings.

The house will go to my Step Brother, but the Will states it is to be Sold and shared Equally.

But I may propose I buy the house, Rent it to my Brother and pay a share to each of them.

 Please read the link about contrived tenancies that was posted. You will have to figure out a way to get him into work if he has to pay rent 

Chickusdickus

elsien said:

Universal Credit decisions on contrived tenancies | Housing Rights

I'll take a closer look at this but he's on the sick and already living there.

it would simply be a Buy to let Mortgage, but I'd remove my share of it and take out a lesser amount (minus my 3rd) and pay them both a 3rd each.  Then Rent or allow my Brother to remain in the property for as long as he can afford it.  The problem will always arise that he will Not be able to afford his own place while not working or living on his own.

there are tough times ahead for him.

elsien

marcia_ said:

Chickusdickus said:

elsien said:

mattojgb said:

If the house is specifically left to be jointly owned by the three of you then the brother can just carry on living there for free. Why would he need to be bought out?

Post before yours says the house is to be sold and shared. I think it is the proceeds that are being left equally between the three, not the property itself. 

Yes, sorry, I'm not sure of all Legalise and literary meanings.

The house will go to my Step Brother, but the Will states it is to be Sold and shared Equally.

But I may propose I buy the house, Rent it to my Brother and pay a share to each of them.

 Please read the link about contrived tenancies that was posted. You will have to figure out a way to get him into work if he has to pay rent 

I don't think that is automatically the case. The issue would be though that until the OP buys the house and the brother tries to claim rent, no-one can be sure whether it would be payable or not. It would be down to the decision maker at the time. Maybe one for getting proper advice on. 

Keep_pedalling

Chickusdickus said:

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?

Simple if he retains his third only your step sibling gets the cash. You then come to an arrangement with your joint owner to pay rent at 2/3rds of what h would have paid had you owned all of it. 

Having said that it would be far better to sell up and your sibling sort out his own living arrangements. 

Another option would be for your father to change his will leaving the property to you and your step sibling with you more dependant sibling getting a life interest via an immediate post death interest trust. 

saajan_12

Why does anything need to be done now? 

If Mum and Step Dad owned it jointly, and Step Dad is still alive, then Mum can't just will it to whoever she wants. HE He would own it fully, and when he dies it would follow his will. If his will also says split between 3 kids thats fine, but until then there's nothing to be done. 

Even when Step Dad dies, the ownership could be split 3 ways and remain so. If 1 brother wants to live there, he could just pay 2/3 of the market rent to you and the other brother. No need for a mortgage (assuming mum & step dad owned it outright). That's more tax efficient and saves the interest cost.

Savvy_Sue

And there is also the possibility that Stepdad will a) change the will or b) re-marry, which will invalidate the current will. 

And as a) has been suggested, giving brother the right to live there, I'd say that right now is NOT the time to be trying to fix things. 

However, I'd go back to my previous post: people sometimes want things which aren't going to work. By the sound of it, either your brother's going to be dependent on you for keeping the house in good repair for the rest of his life, OR he needs to find some income so he can do that himself. OR he needs to live somewhere where he can afford to support himself. 

sheramber

If your father needed to go into care , unless he has a large amount of cash  then the house nay need to sold to pay his care home fees.

Will your brother want to sell his share of the house and  have to pay rent?
He could refuse to sell to you.

Your father could make a will giving your brother  the right to live in the house until he dies and you would only inherit then.

When The time comes you may not be able to  afford to buy your brothers out.

There could be any number of changes if circumstances  for all of you.

The time to consider  options is when you know exactly what you are inheriting after your father’s death. 

Savvy_Sue

sheramber said:

If your father needed to go into care , unless he has a large amount of cash  then the house nay need to sold to pay his care home fees.

That may depend on brother's age: if he's over 60 at the time Father needs care, then the house will be disregarded. 

sheramber said:

There could be any number of changes if circumstances  for all of you.

The time to consider  options is when you know exactly what you are inheriting after your father’s death. 

Absolutely. And actually, Dad may not appreciate all this talk of what's going to happen after he's died ... 

poppystar

Chickusdickus said:

elsien said:

mattojgb said:

If the house is specifically left to be jointly owned by the three of you then the brother can just carry on living there for free. Why would he need to be bought out?

Post before yours says the house is to be sold and shared. I think it is the proceeds that are being left equally between the three, not the property itself. 

Yes, sorry, I'm not sure of all Legalise and literary meanings.

The house will go to my Step Brother, but the Will states it is to be Sold and shared Equally.

But I may propose I buy the house, Rent it to my Brother and pay a share to each of them.

These two things contradict each other. The house either goes to your step brother or can be sold and the proceeds split equally. Which is it? 

Did your mother have a Will? What did that say?