How do I fairly split proceeds from sale of house

(3 Posts)
SkinnyLove Tue 09-Apr-13 12:49:56

Hi,

I have a problem and need some advice! 15 years ago my dad bought a flat. My sisters lived in it, as did I...then I moved to London but as it was in my name I could never get another mortgage - even on 80K in London, i couldnt get a decent flat. Eventually, sick of renting at 1k per month, I came home, and asked the tenants to leave and completely renovated it - spent about 25k. Then I got married had babies etc, stayed there etc.

We now have to sell. Morally, im aware that I need to give my sisters something from the sale but am unsure how to calculate it.

So far, what I have done is - adding up mortgage liabilities, money I spent on getting it to an inhabitable state. I dont feel like i should have to divide it equally by three however, as I was forced to rent for ten years while they lived there with subsidised rent (and trashed the place to boot).

How do I work this out fairly? They have since been given deposits for their own places, one from my mum, the other from her MIL. Neither is paying back that cash but I do need to pay back my dad as he needs it.

Secondly, is there a tax liability if I gift them money from the proceeds or would it be better to repay my dad and let him distribute it?

dizzyhoneybee Tue 09-Apr-13 18:12:40

It's not relevant what they have got for their deposits.
Claim back your 25k that you spent on doing it up and then split the rest three ways?
No idea about the tax.

Alanna1 Wed 21-Aug-13 18:50:55

Sit down and work out what you spent / lost. Sit down with your dad. Do you need a deposit? Do your siblings need any financial help? Then I'd split equally the remainder.

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