Advice needed please

Silvertabby

Why did I get a vision of the house being renovated, and then your sister saying that as they can no longer afford their rent she is going to move into 'her' house.......

Sell the house as it is, divide the proceeds, and move on.

Emmia

If the sister wants the house, she needs to buy the OP out, at the market valuation.

It's a pity she and her husband have apparently spaffed the previous £200k inheritance...

Silvertabby

https://forums.moneysavingexpert.com/discussion/comment/82046948#Comment_82046948

Sister is 70 and broke, so that won't be an option. I do hope that the decision to transfer ownership of the property into both sisters names won't come back to bite OP on the bum.…

Bobbysoxx29

After all your helpful comments, I contacted my sister to discuss the situation and 'Bombshell'… she and her husband want to move in for their retirement and to pay me a monthly sum as rental.

I was a little taken aback as they live in a town with all the amenities and Mum's house is in the middle of nowhere, but I said OK. They have a car and she would be giving up her job. She has told me they would only be receiving their pensions which I am assuming would mean they want a reduced rent to the sum they are paying now. The are paying £700.00 a month currently.

She told me that 2 of Mum's neighbours have kept asking her if we are selling and she has told them that she is moving in (to stop these neighbours keep asking about the situation with Mum's house). I do know that both of these would love to buy the property but my Mum always said she did not want to sell it to them, both would turn it into a holiday cottage/ AirBnB I think.

I am so confused about how this has all unfolded. My husband is less than happy as he feels everything would be left to me to sort out before they move in nearer Christmas.

Emmia

https://forums.moneysavingexpert.com/discussion/comment/82047588#Comment_82047588

You really shouldn't allow this, if necessary go to court to force the sale - whilst your sister is living there you won't have any access to the money tied up in the property. What happens if/when your sister stops paying the rent?

If you sell, yes it might become an Airbnb or a neighbour might buy it, but actually what do you care?

If your sister wants it, she can buy you out... Assuming the financial resources to do so.

Edit: I'm not sure what relationship you have with your sister, but I think unless you're willing to essentially give her the whole house, you're likely to end up estranged over this. If you take her to court to force the sale, she'll probably stop speaking to you, if she stops paying you the rent she owes then that too could lead to court action and difficulties. I appreciate she's clearly decided what she wants, but are you willing to acquiesce to this?

Silvertabby

https://forums.moneysavingexpert.com/discussion/comment/82047588#Comment_82047588

As Emmia says, do all you can to force a sale before your sister moves into the house. I was in a not totally dissimilar situation, and I can see exactly how this will go:

1. Sister will promise to pay you a nominal rent for your half of the house, but there will come a time when she 'can't afford' to pay you, and, anyway, 'family shouldn't expect to profit from family'.
2. The house will need urgent repairs for this, that and the other. Sister hasn't got the money, but the house is yours as well....
3. Any variation of the above.

Plus, the rules are complex, but if your sister expects to be able to draw housing benefit to pay her rent, that's not a done deal. Hopefully, someone with more knowledge of the benefits system than I will chip in, but my understanding is that housing benefit is rarely paid when the claimant is renting from a close family member.

Jemma01

No, absolutely not. Talk to your husband to get help and sell the house. Tell her she can buy you out. You want your money and will sell it.

About time you get some money and live your life.

lincroft1710

As others have said, it will only be a matter of time before your sister stops paying the rent. Put your foot down and say no!

Notepad_Phil

https://forums.moneysavingexpert.com/discussion/comment/82047588#Comment_82047588

After all your helpful comments, I contacted my sister to discuss the situation and 'Bombshell'… she and her husband want to move in for their retirement and to pay me a monthly sum as rental.

I'm sorry but what are the odds that one or many of the following happen:

• she'll want you to continue paying towards the upkeep of the house whilst she's in there
• she'll want to split the moving/solicitor/other costs with you
• the rent will never get increased at some point in time
• she'll want the rent to stop at various 'financially difficult' times, and even if the payments are restarted then she'll won't be able to make up the missing payments
• you end up having to pay capital gains tax on the increase in house value, whilst she won't as she's living in it
• you end up having to do tax self assessments for the income you'll be receiving
• in years to come she needs to move into some retirement complex and of course needs the full house value to pay for it
• etc, etc

So please, don't do anything just because she's your sister and you feel that you should.

Apologies if I've read this wrong, but from what you've said, to me this sounds as though it could be the start of many years of worry for you and probably your husband too, so it's best to just nip this idea off straight away and say that if she can't buy the house herself then it needs to be sold and the cash split.

Sea_Shell

I'm with the others.

Sell, sell sell.

Do everything possible to stop her moving in. You'll come off worse and you'll be stuck with her living there forever.

You'll never get a day's peace as joint owner and their "landlord".