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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

To not sell a potentially £million plus property for £200,000?

507 replies

InheritanceDilema · 10/04/2016 20:34

Got a really sticky situation and need some advice.

FIL has died and Dh and BIL have inherited his house and small holding. We are not local and do not wish to live there. It's BILs dream to live there and he wants to buy us out and will happily pay us half of the £400,000 valuation of the small holding inc the house.

There are eight acres of land and I genuinely believe that planning permission could be got. The fields are in the middle of a village, so surrounded by built up areas/houses on all sides. Obviously if planning permission was gained the value of the land would be a lot more.

Bil has no interest in planning permission or making any money. He wants to live in his childhood home surrounded by goats, chickens and gooseberry bushes living a River Cottage dream. Dh doesn't want to rock the boat and doesn't know what to do.

I know if we did sell it we could put a thing on the sale saying if BIL did in the future get planning permission we would be entitled to more money. But I know BIL wouldn't ever seek planning permission. He won't even consider only having some of the land and planning permission for the rest of it. He wants a couple of ponies and says he needs all the land. I don't want to kiss goodbye to a considerable amount of money just to keep the peace.....we're not that well off. BIL owns 4 houses and already has a fantastic pension as well as rental income and his current house is worth half a million. We're in a terrace with no other houses and while £200,000 is a lot of money i don't think it's fair that BIL expects us to let him have his own way.

OP posts:
Marynary · 11/04/2016 12:18

Some people don't seem to get the fact that the FIL clearly wanted everything to be divided equally and fairly between the two brothers. If he has wanted one brother to have first refusal on the house he could have put that in the will.

OVienna · 11/04/2016 12:21

girlinacoma 100% spot on post.

SMHL · 11/04/2016 12:21

Spot on MaryNary. That's what I've been saying too.

wherearemymarbles · 11/04/2016 12:24

I can see where you are coming from. Things change, the idyll might not live up to reality and he flogs the lot in 5 years. Or old age takes its toll and he does the same.

Your DH should arrange his own valuation, go round the house with the estate agent etc.

Then as lots of people suggest, have a covenant placed on the land stating if bil or successors sell the land for development you or your successors get 50% of the proceeds. (prevents him giving it to his children if he is still alive and circumventing the covenant)

If BIL is reasonable then no need to fall out. If he is not then you know his ultimate intentions. People can only push you around if you let them. On this your hubby needs to be just as forceful and strong willed and if you back him up he hopefully has the strength to stand his ground.

If there is a falling out then that’s you BIL’s fault not yours. I suspect BiL is used to getting his own way in the family

Mistigri · 11/04/2016 12:25

There's no obligation on the OP's DH to sell his share at all. One solution could be some sort of rental agreement, presumably?

(My mother occupies a house that formed part of the estate of her partner - it is owned 50% by my mum and 50% by her late partner's children. She has sole use of the house until it is sold, or she dies.)

In the OP's situation the most important thing in the short term is that her DH is not pressured to agree to something that is not in his or his family's best interests. So he should get advice from a solicitor and a financial adviser.

SMHL · 11/04/2016 12:26

It's simple. Three valuations. Each on with potential pp and each one without.
The property is worth the average value of each.

DH is entitled to half that.

If PP is obtainable and considerably increases the value, get it.

Then sell, either to an open bidder or to BIL.

Your DH is, as he knows, as as you two have been discussing, entitled to 50%.

BIL strikes me as greedy.

And I agree with Girlinacona, but fit one penny. OP is not on her period. She is simply asking for views to back up her and DHs views. I imagine that DH is very upset and she is gunning for fairness.

AppleSetsSail · 11/04/2016 12:27

Some of these responses have been deeply sexist. 'Can't you just leave it to the men to sort out?'

Like a man wouldn't dream of coming between 2 sisters if one were about to give the family home to the other without properly valuing it. Uh-huh. My husband sure would.

dontcallmethatyoucunt · 11/04/2016 12:28

girlinacoma good post

PerspicaciaTick · 11/04/2016 12:28
MySordidCakeSecret · 11/04/2016 12:28

greedy greedy greedy. HTH.

StatisticallyChallenged · 11/04/2016 12:29

What girlinacoma said is spot on, I cannot believe the grief that the OP has had on this thread.

Her DH has concerns and has asked her opinion. BIL is being pushy and inflexible and very much "his way or the highway." In that situation DH and the OP are right to have concerns. But even if they thought his offer was completely straight they would still be right to want a formal valuation and to give some serious thought to what is best for them and their family. I would agree that as it's DH's inheritance he should probably get the final say should he and OP disagree, but to say they shouldn't discuss it and she shouldn't have opinions is frankly bonkers. And as for saying she's being insensitive for not considering the BIL's dream...

SMHL · 11/04/2016 12:30

Agree AppleSetsSail.

Mistigri · 11/04/2016 12:30

It's simple

Actually, the simplest thing would be not to sell at all while the parties are in disagreement. And certainly not without legal and financial advice. If the OP and her DH need money, they can generate an income stream from the rent on 50% of the property.

trufflehunterthebadger · 11/04/2016 12:31

if you got planning permission and upped the value of the property it would not be what was left in the estate and i believe you would be liable for capital gains tax on any money you got

SMHL · 11/04/2016 12:33

Absolutely right StatisticallyChallenged.

Mistigri · 11/04/2016 12:35

Surely the OP's DH cannot seek planning permission on the property without the consent of its joint owner (BIL). That seems extraordinarily premature to me.

It seems to me that the only answer is to negotiate a compromise (with both sides taking appropriate legal advice) and to agree to nothing at all in the meantime.

EnglishCow · 11/04/2016 12:35

Who valued it.? Your BIL might not want to sell it for planning but someone will in the future. Get it re-valued with hope value included. Get local land agent to advise on value as is, value with hope attached and value IF planning was granted. Is it in the development zone.? Get some proper advice and then you / they can discuss it properly. Whatever you decide get a covenant put on for any future development.
Let’s be realistic here this could be worth best part of £8 Million, (no idea where you are, access etc. etc. but for residential housing depending on infrastructure costs, access etc. etc. maybe £1m per acre.) That’s £4million each... now how much does he want to live there or sell the lot and buy a Chateau and land in France.
What price are those memories worth now.? I’ve no idea but it’s a lot of money and its surprising how that changed opinions..….
You need to get this sorted out if not and he does get planning later you’re DH and BIL will fall out spectacularly and never speak... (Take it from one who knows.!)
Good Luck
The link below might help

www.gov.uk/government/uploads/system/uploads/attachment_data/file/407155/February_2015_Land_value_publication_FINAL.pdf

grapejuicerocks · 11/04/2016 12:36

I think girl was being sarcastic about the period SMHL

Julibelle · 11/04/2016 12:37

As you are clamouring to talk about money, you've lost the point that this is a family home the BIL wants to live in, it's not her family home so the emotion is different. Sometimes it's not only about money for the people navigating the will.

whattheseithakasmean · 11/04/2016 12:38

Fantastic post from girlinacoma I think the OP has been given an unfairly hard time for wanting to ensure her DH is protected over his inheritance. So what if the BIL 'wont entertain' renting half from the DH, it is not just up to him. I would encourage your DH to sit tight & not be pushed to sell his half of the property to suit the BIL's agenda.

GertrudeBadger · 11/04/2016 12:39

yes but it's also easy to say it's about emotion, buy your brother out for a smaller sum than if the land realized its full potential and change your mind 10 years later, making a small fortune. BIL is retaining the option to make more profit from the land. Perhaps BIL in 10 years will find he's knocking on a bit for all that farming...

kaymondo · 11/04/2016 12:40

Agree wholeheartedly with girlinacoma

whois · 11/04/2016 12:41

Fantastic post from girlinacoma

How very DARE a woman look out financially for herself.her family.

StatisticallyChallenged · 11/04/2016 12:45

But why do BIL's emotions trump her DH's, who isn't convinced about this? Why do they have to put his emotions first? And how much are those emotions "worth"...he claims it's worth £400k but let's say for the sake of argument it isn't, let's say it's worth £600 and the £200 he offered is all he can afford to pay to buy out his brother. Is BIL's emotional attachment worth £100k to his brother?

They need to be able to get all the facts.

I believe it's also totally possible to apply for planning permission on someone else's land, so long as you notify them. So DH could easily apply for planning without his brother's consent.

YellowTulips · 11/04/2016 12:49

Some of the posts here are just bonkers.

It's not even remotely unreasonable to question the "value" of the property - note a value supplied by the BIL - and how circumstances may impact that.

Life isn't all about money - but it's also not about being taken for a fool.

If planning permission would increase the value and it was likely to be granted then THIS is actually what DH should expect to inherit. If BIL can't afford to buy him out then that's life tbh. The inheritance was one of equality between the brothers and as such the will of the FIL was not in any way favouring the BIL. As such I don't think the DH has any moral obligation to ensure BIL "wants" top trump his own.

I think this is a classic case of posting on a forum where advocating a bullishit "moral high ground" position is easy when it's not actually you potentially walking away from a lot of money in favour of a BIL whose ruled out sharing the property and has done very well with that same attitude at the DH's expense in the past with another inheritance.