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

[InheritanceDilema]

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.

[NotMeNotYouNotAnyone]

You sound like one of those awful SILs butting in on something that is down to your DH and his brother to sort out.

You're a greedy cow, quite frankly.

[MovingOnUpMovingOnOut]

Oh yes the covenant suggestion is excellent

[BabyGanoush]

I think it is unbecoming and grabby for you to be involved in something that is essentially between your DH, his brother (and his father)

Quite a depressing thread IMO

It is sad when a partner gets between two siblings who are on the same wavelength and are happy to agree.

[TitaniumSpider]

If it's worth 400k then your DH's share (not your share, it's nothing to do with you) is 200k so his brother is being fair suggesting 200k.

You sound like you want what you are not entitled to. It's up to your DH and his brother, it''s their childhood home FFS.

[maddening]

I would retain my interest in the property with bil paying you rent for your half, then you retain interest in any future profit or pass a large sum to your children

[stonecircle]

Questions like this always elicit lots of accusations of 'grabbiness' op. I think you're being very sensible in questioning the proposal, especially if your DH is unsure. Don't rush into anything.

[user7755]

It's not your dad, not your inheritance - you need to leave it to DH and BIL to decide what to do. You need to be objective and distant.

Not your decision to make.

[urterriblemuriel]

Regarding planning/valuation - based upon what you say re site location (within village boundary, built up all around) then your chances of gaining PP would be good. Local opposition is likely to be strong though. Would also be worth seeing if there is a 5 year land supply in your area, because if there isn't, that helps your cause too.

Where I live (East Anglia), 0.25 acres plots with outline planning go for c£175k giving you an indication of valuation.

Going on what to do, it's a difficult one - it isn't your dad, it could cause an irreversible rift between your DH & BIL and it's also worth bearing in mind what DIL would have wanted. Have you explained financial situation to BIL? If you did perhaps he might agree to a part release of the greenspace?

[HanYOLO]

So re the backstory - why didn't your DH and Bil stay as joint owners and therefore jointly benefit from the increase in value? Your DH clearly wanted the cash then and there. Your sour grapes about that are unjustified.

Re the current property - I kind of see your point, insensitively and rather mercenarily made as it is. Your could take advice on what the lands' value might be, should planning permission be obtained. Perhaps you could retain a share of ownership of the property so that, should BIL decide to allow the land to be developed you get a percentage of its increased value. If your DH wants his share of the value now you can only realistically expect BIL to pay you 50% market value.

[Babyroobs]

Totally agree with Stonecircle and I think people are being pretty mean calling you greedy and grabby . I too think it is sensible to get a good few valuations and take it from there, especially when your dh is recently bereaved and unsure.

[InheritanceDilema]

Mmm, I haven't got between Dh and BIL at all and DH isn't happy to agree to this. As I said in my OP he doesn't know what to do but is worried about upsetting BIL.

He is the one who said to me that he can see BIL "doing better" for want of a better expression over this.

I have been totally non committal in any response to Dh when he asked me for my opinion. I said I didn't know, that it was complicated, etc.

If Dh decides he is happy with what BIL is offering then that is very much his decision.

[pandarific]

I think OP is being sensible really. Sensitive handling is required, but it would be silly for all angles not to be explored by OP and her husband.

[sleepwhenidie]

I was going to post what Perseus said, your valuations may be pie in the sky but it's not at all unusual to have a covenant in the sale contract to say that if the land is later sold with pp or development on it then you would be entitled to 50% of the uplift over and above any uplift that may have happened with the value of the house alone. It may well be that BIL will be very happy in his childhood idyll for a very long time but things can change or not go as expected. I think it would cause a bigger family rift later on were BIL to make a load of money from the property. If he is genuine about not planning to, then he should have no problem with such a covenant - power over what to do with it, if anything, will be completely in his hands after all.

[Potatoface2]

so your husbands dad dies and all you can see is you might be conned out of ££££....grabby and insensitive....when one of your parents dies i hope your husband doesnt behave the same, its a real eye opener!

[InheritanceDilema]

Don't worry Potatoface, both my parents are already dead.

[pandarific]

Thinking more on it, BIL does stand to benefit from what they've currently proposed.

I'm a bit at BIL saying he needs all the land, also. What's his reason for that? Surely there's some room for negotiation?

[PennyHasNoSurname]

So split the estate in two. House with a reasonable sized garden is given to BIL.

Remainder of land if given to dh. Dh (and his interfering wife, ahem), can then draw up plans etc and sell on for a hugher pricw.

[Mrscog]

Have you got the money to even go forward for planning? You'd probably be looking ar around 10K for all the consultancy fees etc for an actual development.

Your best bet is to take the 200k but have some clause in agreement about uplift if he does get planning then sells.

[InheritanceDilema]

Oh and with the previous house BIL wasn't prepared to consider remaining half owner with Dh. He told Dh that either Dh had to buy him out or agree to sell to him (Dh had first refusal on the property according to the will). So it wasn't a case of Dh wanting the money there and then.

[RudeElf]

Wonder how long OP has been waiting for her FIL to die

[musicinspring1]

I am probably very naive but can't you be 'glass half full' and think - ' wow - I've inherited £200k. What shall we do with it?' Etc. And put a caveat on future land sales just as reassurance? Enjoy your lot a bit more? Comparison is the thief of joy and all that?

[CaptainAnkles]

How does anyone else ever deal with this? You can't buy someone out of a property but insist that if the value goes up, you want more, surely? All you can go by is the valuation you've got now, not what it might be worth in the future.
If he wants to live on the land, why would he suddenly get greedy and make a bundle out it? You sound like you don't trust your BIL very much.

[InheritanceDilema]

Yes, we would have money needed for any consultancy fees if necessary.

[EnriqueTheRingBearingLizard]

Put the property in a family trust and BIL pays a peppercrn rent, then you can see how the land lies, literally, in the future.