buying out sibling of her share of house

NittyGritty

Hi wonder if some of you could help me, my mother passed away in june 2024,and myself and 2 sisters were left in the will for equal shares of the house, i,m the sole executor and i wish to buy one of my sisters out of the her share, and just have myself and my other sister on the title deeds,

the buy out would be by cash through a loan, (ive paid for probate already out of my own pocket) (am i entitled to take £100 from the sister i,m trying to buy out for probate i paid for which was £300 online or are all costs liable for the executor only

also is it easy to do all this myself like it was to do probate online or would solictor be the best way to go for this one, ive been priced around £1.4k with solictors, but looking online of transfer of deeds/land registry are if i,m not wrong between £20-£100? unless i read it wrong, 

what is involved in buying my sister out of her share? is there a breakdown of whats involved either doing it by myself or using a solictor

also as i,m the one trying to buy out her share i,m assuming all that cost if i do go through solictor falls on myself again? or do the other sister i,m buying out have to share the cost legally? i,m assuming not ?

hopefully thats not too much of an essay for everyone, i tried to keep it short

thanks in advance

sheslookinhot

Your sister is entitled to receive 1/3rd of the professional valuation/s of the house. 

Why do you want to own 2/3 rds of a house and another sister own 1/3rd. Without knowing the answer I fear this may not end well.

NittyGritty

yes shes agreed to 45k the sister i,m buying out, the other sister is fine with me living in house,shes agreed that  when i pass she gets all the house hence just one of sisters is getting bought out and why it will be mine and my other sister on title deeds once other is bought out

NittyGritty

so can anyone explain what i posted and give some advice is it easier to do this my self if so how, or just to stump up the cash for solictor to sort everything, i dont really want to use solictor if its as easy to do like probate was, i was quoted just to do probate with solictor was nearly 1.4k but i did it myself for just £300,

so any advice would be grateful in original question

Linton

How do you intend to protect the  interests of the ”other sister”? For example what happens if you decide not to leave your share of the  house to her in your will or perhaps the house has to be sold when you die to meet your debts?

Then there is the need to protect your interests. What happens if she changes her mind about you living in the house? What happens if she dies first and her beneficiaries don’t like the agreement?

It seems to me to be essential that the agreement on the house has a solid legal basis.  

Olinda99

In answer to your other question all costs come out of the estate so you as executor do not personally pay probate costs etc

I would post on the house buying and selling forum and just ask how you transfer the property to be registered in the way you wish

mattojgb

There are rules regarding executors buying property from the estate they are administering. You should look up the rules on self-dealing. If at some point in the future your sisters decided that they didn't like what you had done they could overturn it relatively straightforwardly if the rules had not been followed. If you don't think that would be an issue then you may decide not to follow the rules.

NittyGritty

Linton said:

How do you intend to protect the  interests of the ”other sister”? For example what happens if you decide not to leave your share of the  house to her in your will or perhaps the house has to be sold when you die to meet your debts?

Then there is the need to protect your interests. What happens if she changes her mind about you living in the house? What happens if she dies first and her beneficiaries don’t like the agreement?

It seems to me to be essential that the agreement on the house has a solid legal basis.  

as soon as transfer is done we will be drawing up a will so it goes to her,(she as already said that if she dies in the meantime(sister) she would want her share to go to her siblings)  as for me dying before paying off the loan, i have life insurance that will cover the 45k, and the loan is only for 5 years anyway

NittyGritty

mattojgb said:

There are rules regarding executors buying property from the estate they are administering. You should look up the rules on self-dealing. If at some point in the future your sisters decided that they didn't like what you had done they could overturn it relatively straightforwardly if the rules had not been followed. If you don't think that would be an issue then you may decide not to follow the rules.

thats why i,m wondering is it easy to do myself or get a solictor to do it that way i cover myself so theres no comeback once shes bought out of house

NittyGritty

Olinda99 said:

In answer to your other question all costs come out of the estate so you as executor do not personally pay probate costs etc

I would post on the house buying and selling forum and just ask how you transfer the property to be registered in the way you wish

i already paid the £300 for probate out of my own money, so does that mean legally my sister i,m buying out now doesnt have to pay my £100 back out of the share i,m willing to buy out?

Olinda99

she 'owes' you £150 - costs are borne by the estate before distribution