Inherited half a house but other person can’t buy my full share. What options?

N

noideawhattodo

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So I’ve inherited half a house but seems like the other beneficiary is unable to buy my half out even with a decent discount. I’ve no desire to keep my share as rather cash it in as I’ve my own mortgage to pay for and what use is having a share in a house which will give me no income at all and I’ll never see a cent of it. Is it possible to sell some portion of the house let’s say 40% of it and with the option to purchase the rest of it at a later time? Or what other option would I have. Thanks
 
You haven't specified whether the other beneficiary is living in the house? If not just sell it and split the proceeds.
 
I assume that the other beneficiary is living in it and wants to buy you out.

Can you give the figures.

1) What is the value of the house?
2) How much cash does the other person have?
3) What is their income?
4) Why can't they get a mortgage?
 
They are living there.

How much is it worth. I think maybe €350k could even get more.

They can get a mortgage but for about 35-40% of the house roughly.
 
So they get a mortgage for 35-40% and pay you the balance to 50% from savings/other means?
 
What's your relationship to this person? ( sibling, cousin)?

Are they reliable types?

How well do you get on with them?

Get an auctioneer to value the property. Don't assume it's value to be x amount.

If you need an agreement, ensure its drafted by a solicitor and not some ad hoc, word is stronger than oak nonsence as you'll likely run into problems quickly.
 
Brother. I know I need to get the property value. I don’t know what he has in his bank account. He got mortgage approval for €140k as he’s on his own. He can rent a room out also but if he does am I liable for tax as I’ve still a share and not living there but he’s not as rent a room scheme if I’ve still got 10-15% share in house which he could buy me out at a later date or I keep that % forever. I would do this all done up properly legally.
 
Ownership has nothing to do with rentaroom relief.

Get a proper valuation done, draw up a contract for 140k now & 35k over the next 3 years or whatever. Retain your 50% share until you have full payment; then sign it over.

Use a solicitor, lock everthing down watertight.

If you can't do the above, sell the place. Brother will have 175k in cash plus 140k in mortgage to buy somewhere.
 
DannyBoyD said:
Get a proper valuation done,
Click to expand...

You can if you wish. But you are better off agreeing among yourselves a reasonable value. You might get a valuation which one or the other does not like.

Then just sell it to him for half the price with €140k payable now and the rest payable over whatever period.

You won't be able to enforce that if he chooses not to pay, but if you are not happy with that, sell it now.

Brendan
 
It depends on how anxious you are to cash in your share of the house. You have a range of options.

You could do nothing, maintaining your part ownership of the house, perhaps receiving rent from your brother in respect of the half he doesn’t own. You would be liable for CGT in the event of any future sale of the house.

You could alternatively insist that he pay you the 175k and that the house be sold if he can’t raise the money.

140k may be as much as your brother can raise by way of a mortgage but it doesn’t necessarily preclude him from paying you the 35k balance by way of a private loan arrangement. The rent-a-room scheme might be a way through which he could raise money to do so.

Or you could decide that because it’s your brother, you’d be prepared to settle for just 140k.

It’s really up to you.
 
DannyBoyD said:
Get a proper valuation done, draw up a contract for 140k now & 35k over the next 3 years or whatever. Retain your 50% share until you have full payment; then sign it over.

Use a solicitor, lock everthing down watertight
Click to expand...
No bank would accept this. They would not offer a mortgage to you if you have no security on the property. Ownership would need to transfer in full and immediately

Even having a formal side loan to cover the 10% may not work. The bank would need to be made aware of it and it may affect affordability.

The easiest solution is to come to an informal arrangement to pay the remaining €35k off but that all depends on how trusting the OP is of his sibling
 
I'm aware he owns 50% already. Banks don't do equity release which is what you are describing. The bank will not offer a mortgage where ownership is conditional on the OPs sibling raising another €35k over the next 3 years to pay a separate loan.

The bank would effectively have no recourse as the 2nd owner (the OP) is not on the mortgage.

A good solicitor may be able to structure it correctly to deal with the €35k but full 100% ownership would be necessary for a mortgage to be drawn down
 
Thanks all. It’s not easy situation as I want out as I’ve my own mortgage etc I think next step should be get a valuation and see what the shortfall is.
 
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