Buying shares of inherited house

workmummy

this is a follow-up of my previous post. 

My father passed away last his partner not married resides in the home with a three year trust for her to stay there until she finds another property to move into

The house has been left to myself and my sibling at 42.5% each and the remaining15% to Dad’s partner

we have discussed with Dad’s partner purchasing the property once we have sold our own home and moving in with her until she is able to find something else to move to. We have a really good relationship and she is happy for us to move in with her as it is also company for her

The house is perfectly livable however there are some issues with the garden. It’s a new build as of 2012 the garden has areas which have sunk approximately once every two years the property developer has been under a contract or warranty to rectify these issues however it is still happening and they once again are going to have to dig up the garden area to find out why it is sinking previous attempts to rectify this have included filling the ground with concrete 

Given this if we were to just go ahead and put the house on the market I imagine this would put a lot of buyers off and result in the house being sold for a lot less than market value or remaining on the market long term. The properly is valued at £350-£375,000

Obviously we had discussed this matter with my sibling and the partner and stated we would like to purchase their shares of the property but it will be less than market value due to the problems with the garden.

I've asked them to consider what price they would realistically sell their shares to us for but I am just enquiring here if anyone has any ideas as to what values would be appropriate in this situation?

Twixty3

I would imagine that very few people would agree to buy a property with a sinking garden which could maybe be an issue that could worsen.

If it gets fixed you get the benefit and they do not and they may feel cheated. 

I would wait and see what happens.

Could there be an old mine underneath or something like that?

ThorOdinson

Do you need a mortgage?

workmummy

Twixty3 said:

I would imagine that very few people would agree to buy a property with a sinking garden which could maybe be an issue that could worsen.

If it gets fixed you get the benefit and they do not and they may feel cheated. 

I would wait and see what happens.

Could there be an old mine underneath or something like that?

No mine under it. The only thing we know of was an old canal but that wasn’t even where the garden is it’s about 20 feet behind 

workmummy

ThorOdinson said:

Do you need a mortgage?

Yes we will have £80k equity from our home and rest would be mortgaged 

RHemmings

What will happen if after three years your dad's partner isn't in a situation to easily move out? 

I'm not suggesting that relationships will break down. But, it looks to be a potentially difficult situation to me. 

saajan_12

workmummy said:

Given this if we were to just go ahead and put the house on the market I imagine this would put a lot of buyers off and result in the house being sold for a lot less than market value or remaining on the market long term. The properly is valued at £350-£375,000

Obviously we had discussed this matter with my sibling and the partner and stated we would like to purchase their shares of the property but it will be less than market value due to the problems with the garden.

I've asked them to consider what price they would realistically sell their shares to us for but I am just enquiring here if anyone has any ideas as to what values would be appropriate in this situation?

This doesn't really make sense and might get them worried to be getting less than market value. 

By definition, market value = what buyers would pay for that house with all the issues it has. 

If you mean that a similar house without the sinking garden is worth £350-375k, then I'd get a quote for remedying the garden and deduct that. That lower figure IS the market value. 
Still not perfect if you expect the issue will be ongoing, but you have to draw a line somewhere. 
You could also get a survey including a valuation and ask the surveyor to include the garden when booking. 

sheramber

Will you get a mortgage on a house with a sinking garden?