How to get collateral out of home you half own?

thebigpotato · 29 June 2017 at 2:33PM

Hi,

I recently inherited a house with fully paid mortgage which is split 50/50 ownership between my brother and I, my brother is presently living there and has for some time and doesn't wish to sell or move.

So my question is what options are available for me to get the collateral out of my half of the house?

Any help and advice would be greatly appreciated,

Thanks.

Pixie5740 · 29 June 2017 at 2:35PM

Get a joint mortgage with your brother to release some equity but that won't be as good as either getting your brother to buy you out or selling.

Thrugelmir · 29 June 2017 at 2:41PM

Your brother needs to buy you out. Or sell.

xylophone · 29 June 2017 at 2:41PM

Is there any reason why your brother can't buy you out?

It would be possible to go down the "forced sale" route but risks your relationship and your pocket.

https://www.theguardian.com/money/2016/aug/18/inherited-house-brother-wants-to-sell

marliepanda · 29 June 2017 at 2:41PM

Either your brother buys you out. Or you sell the entire property and he finds somewhere else with his half.

Or you find someone who would love to own half a house with your brother...

PasturesNew · 29 June 2017 at 2:48PM

As others have said - either your brother buys you out, or you both mortgage and take money out, or you forget it.

You won't be able to remain as a separate person and have a mortgage solely on half a house. Mortgages/etc are on whole houses, not bits of them.

thebigpotato · 29 June 2017 at 2:48PM

O.K as I thought, I recently had the discussion with him and he was negative towards the whole discussion so I just wondered if there was any other route to go... I really don't want to cause any conflicts but my brother is sitting pretty paying very little to live there right now so me wanting to sell a family home or him buy me out sounds like allot of work for him, a bit selfish I know but that's how it came across, I was made to feel I would have to do all the work and they have no intention to get involved.

agrinnall · 29 June 2017 at 2:55PM

Your brother is the one causing the conflict by refusing to acknowledge that he is the only person getting any benefit from the property. I'd start looking at the forced sale route as I suspect that may be the only way you'll get your share of the value. Perhaps if you start the process that'll shake him up and make him reconsider his selfishness.

eddddy · 29 June 2017 at 3:02PM

Are you saying that you jointly own the house, but only your brother is living in it?

So perhaps one other fair solution is... he owns half the house, so he should be paying rent on the other half to you. i.e. He pays you half the fair market rental value.

teddysmum · 29 June 2017 at 3:09PM

An option not mentioned is to move in, as is your right.

Perhaps a solicitor's letter saying that you are taking proceedings to force a sale,while suing him for costs ?

thebigpotato · 29 June 2017 at 3:20PM

Sure, I've been a soft touch on this one as the house was deemed a family home in the past so I have to show some understanding but yes some rent is being paid but half the market value as they deem that's all that needs to be paid as they own the other half of the house, it's my choice I don't live there in their eye's but having not lived there for 20 years I was not going too of course. In the mean time I want to get on the property market myself where I reside some 300 miles away so just wondering which way to move forward, ideally without causing conflict... I thought I was being a soft touch and everyone here is clarifying that,

Thanks.

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How to get collateral out of home you half own?

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