AIBU to want to sell quickly (inherited house)

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My brother and I recently inherited our parent’s house after the death of our father. I had been living in the house for a year whilst my father was in and out of hospital in order to visit easily– my brother also came back earlier this year and lived in the house due to a job change and similarly to visit. I am 29 and he is 32.

We had planned to simply decorate the house, and fix a few minor things like old window frames, before selling and splitting the money to each buy our own first homes. However, it has become clear that my brother assumed we would stay in the house until late next year, as that is when his contract ends and he wishes to relocate and buy a house when he has a new job.

My job is in the local area, where house prices are going up at a rate of knots, and I wish to speedily prepare the house and sell it, settle down with my partner and begin a family.

We have talked about this, and my brother is worried that if we sell now he will be forced to rent locally (and expensively) for some months, which he feels is a waste of his money.

I feel as though his arrangements are not my responsibility, and I should not put my life on hold for a year to suit his.

We left it that we would carry on thinking about what to do that would suit us both.

Who, if either of us, is being unreasonable? Things are not awkward or difficult as I love him, we get along very well and enjoy living together, and have so much to do in the house currently that it makes no difference at this stage. However I’m scared of awkwardness in the future and I want to move on with my life, but don’t want to trample his rights.

It's an inheritance. Your option financially disadvantages him. His option doesn't financially disadvantage you.
It's also not the best time of year to sell as the market slows in autumn/winter. It's not to say it won't sell but you would be likely to get more interest in the spring or summer.
I think your DB's plan makes more financial sense.

If it sells before you find somewhere to live, what will you do?

Can he perhaps lodge in your new house until the contract ends, assuming you'll have found something?

By the time probate is sorted, you've done your repairs, put the house on the market and exchanged contracts most of the year will be up and he could stay with you in your new house to bridge any small time gap left.

It is the end of 2017 he wants to wait until.

I love how a woman moves in with her Dad to care for him, her brotger moves in because it suits his job, but the womsn is "only thinking of herself" if she wants to move in with her life now her father has died.

It sounds as though you and your DB have been bequeathed the house itself, not the residue of the estate, realised by selling the house. Is that right? If not, who is the executor and what do they say?

Do you have other residences too, or is this house your own current address? If it is not your primary residence, have you looked into the capital gains tax implications for you both?

Has the estate gone through probate yet? Do you need to sell the house to pay the inheritance tax? If so, it's worth selling it as quickly as possible after probate is granted, as you will be racking up interest due on the IHT.

Will the house you buy in the area be more or less expensive than your Dad's house? If more expensive it's worth selling and buying now (smaller actual price gap at lower prices). If less expensive it's worth holding on (potentially more profit to make, giving you a bigger deposit / option of a bigger house). Caveat - as pp said, this is true if everything is rising proportionately. In reality, some neighbourhoods in your town will be doing better than others, prices could fall as well as rise and, depending on the popularity of your Dad's area and what you want to buy, this could make a big difference.

Have you had a good chat with some estate agents? Bearing in mind they want their cut, now, so will always talk up current market conditions and price.

You need to gather all the facts and do the sums. Then you can have a good go at quantifying the implications (vagaries of the property market notwithstanding).

Rosie - you're lucky re the discount..

the clients I felt most sorry for were the ones who had no idea that every 2 years my boss buggered off on holiday at christmas or before... leaving locums (hired on the cheap, friends) who were useless (apart from one who was great).

We had 1 locumher first time as a locum, who threatened to walk out three times and we had to ring our boss who told us he was on Bondi Beach cue us having visions of him in budgie smuggler trunks, not nice!

ah my boss also didn't tell his clients and asked us not to tell them re his holiday plans either (because he knew they'd panic).

most sane clients avoid this time but you get some people who have this dream of being in at christmas and unrealistic timescales...

Doinit - OP can in theory wait - baby making etc can take time, would it kill her to wait until next year??

and I am stating realistic facts re probate and times to sell...

I don't think late next year is doable from OP's point of view - but with discussion they could come to an agreement.

and she is 'only thinking of herself' not her DB.

Thanks all for replies and perspectives

Some answers:
House is 2 1/2 bed 'snug', mortgage paid, it is both of our only residence, and was left as 'estate to be split equally', houses around here sell almost instantly (East Anglia - not too far from London)

I am aware that our house is also going up in value, however as I will still be buying the other half of a house, the cost of this is increasing if you see what I mean. Say all houses are 200k - we sell this, I buy an equivalent with my 100k and mortgage 100k. Say it goes up to 220k (double digit increases p/a not unusual in this area) I buy equivalent with my 160k, and mortgage 160k so it's cost me 10k (not including interest). That is significantly more than DB would pay in rent for that period, were he to do so.

I guess 10k perhaps not huge to some people, but makes the difference re: approved for a mortgage or not. My contract is also only another 18months, in one year when DB's contract ends I only have 6 months. I'd be faced with a bigger mortgage with less security, and I'd imagine I'd just be turned down by the bank. This is the situation that has me a bit stressed about speed of movement!

I did offer DB to stay rent free in my new house as long as he wished, I don't want to 'turf him out'. I can see how it looks as though I'm just thinking off myself, however, in life you do have to sometimes? He earns enough money, is planning to buy up north mortgage free, has no plans to ever settle down etc. We just have very different life plans, that's the only problem.

DP I suspect will lose the plot if faced with living with DB for a year in this house, it's a big ask - not that they don't get on, but it's not 'our' life if that makes sense. It would be an easier compromise, psychologically, for us to at least buy together and live with DB there, however I think that would make DB uncomfortable.

One idea I had was for DB to buy in the city he's moving to, let that out, and we split the rent he receives whilst he lives in my house- but he wasn't convinced.

I also suggested that I buy the house from DB, again allowing him to remain (for free - just bills) until his contract ends. But I think he thinks he'll lose out somehow if we do that (perhaps he would - however this would be post-improvements and I'd pay the fair market value)

I take the comments about spring selling and probate timescales , I have never bought/sold/inherited before so accept I don't fully understand the process.

What will be will be, I am prioritising my relationships with DB and DP over finances - but am in somewhat of a lose/lose situation on that front!

Selling, even really straightforward can take months. Eg put house on market in January sold October . Realistically you need to look at six months.

So put it on at Easter peak selling time and complete in the autumn, which is almost at your brother's end of year target. Equally you could still be waiting for an offer next autumn.

Most realistic option is to suggest to your brother to put it on market at Easter as likely to maximise selling price. Then you can work out what to do practically once you have a solid offer which is proceeding.

Christ alive I had no idea of these timescales - have had two friends in the last year list houses in the morning and receive offers by lunchtime! Looks like there's no point worrying now then anyway.

Howabout if I were to buy him out? Would that be quicker? That did seem like the best option after more thought, as he could stay in house until contract end (and buy quicker on the other side), he wouldn't have to worry about moving large furniture which he would like to keep until he's ready, and would mean DP and I would not be stuck unable to make plans and watching my work contract shorten (very likely to be renewed but no guarantees) and prices rise...

Christ alive I had no idea of these timescales - have had two friends in the last year list houses in the morning and receive offers by lunchtime! Looks like there's no point worrying now then anyway.

Things have changed since Brexit. We sold our house in a day before, then had to remarket it after due to the buyer's mortgage falling through. It took two months and we got £3.5k less.

You might be lucky and it goes straight away but don't bank on it.

I don't think you can buy your brother out until you've got probate through. I don't understand how that solves the issue of him needing to rent.

Even a same day offer can take months to complete.

Do you have probate?

Once that is granted six-eight weeks to buy him out depending on how quick your mortgage company is. Do you have a mortgage in principle?

If I bought him out he could still stay in the house until his contract ends, and store stuff with us whilst making his move next year, but DP and I would feel as though we're moving forward with our lives. I thought it might be a good compromise.

This has been a reality check on the housing market anyway, so thanks! Will suggest to him about selling in spring and hoping to complete by autumn. No feathers ruffled.

I'm not really sure on probate, DB is legal so has been sorting that, however we were previously co-owners with DF so there was a chance we didn't need it?

I don't have a mortgage in principle, no. I had planned to call Which for initial advice, then make an appointment with the bank.

If you're buying him out does that mean you'll live in the house and he'll move out at the end of next year as he'd planned anyway? I'm not sure what the advantage of that is over selling the house next year and you both getting the proceeds of sale if you're all going to continue to live together.

Glad it is being sorted OP.

Yes Purple, that was what I was thinking.

The advantage would be I could get a mortgage now whilst still having a decent stretch on my work contract and DP and I will be buying together rather than just waiting for things to happen. It might be a silly idea but I thought it was an option. I'd feel I had more control over my life rather than worrying about DB's plans. In reality we'd all three just be crammed together like now, but it would feel less out of my hands.

I am a little surprised that the consensus has been that I wait a year to suit DB's circumstances. After life being on hold with DF's health, I was just anxious to move on with my own life with DP, not DB! I do love him, and don't want to screw him over, but another year feels like a long time! However if that's what timescales are like anyway then it's not worth trying to rush and potentially upset him for only a few months advantage.

Its quite stressful, but it is what it is.

Mortgage broker is a really good way to go.
A lot don't charge so see if you have one locally that doesn't charge.

I think you're right to want to suit your own needs. You were primary carer, sounds like for your DB it was more a convience, while being near your dad too. What would your DB have been doing if your dad hadn't been ill? Renting? So he's saved on rent without putting his life on hold to be primary carer, unlike you. In which case the moral high ground is yours.

Housing markets vary hugely around the country. You really do need to get an honest view from some estate agents.

You need to find out about probate. The house is not you and DB's to sell until you have a grant of probate.

I was recently an executor and my solicitor advised that I could put the house on the market when I posted the (correctly) completed application for probate. As, for that part of the process, turnaround was a predictable 3-4 weeks, which is less time than it takes to get from offer to exchange of contracts.

So, if probate is imminent, I'd put the house on the market in January. If offers come fast and you find a reliable buyer (not all are), you could complete by March. Could take longer of course.

I think your idea of buying out your brother is a good one for you financially, for the reasons you say and, you'd gain all of any profits made in the next year. You also take all the risk in the case of a fall - but that would lower the price of the house you're buying too. How would your brother feel if prices did rise? Would it really work practically for you and DP?

I do think your point that waiting longer would make your mortgage more expensive and less certain is a very strong one. Get an advisor to set that out for you, so you know where you are and can show your DB.

"after brexit is triggered there will probably be a massive fall in house prices, so selling now, renting then buying would be to his advantage."

Though property is now much cheaper for those buying from abroad for investment purposes, so I do wonder if prices will fall far and fast in all areas.

My father died last August, it took us till early April to get the house ready for sale (emptying junk and painting/carpeting the hall), one sale fell through and we finally completed last week - we completed on the same day with a lovely house for my dp and I! It took about six months to get the grant of probate (can't sell without this). I'd get an estate agent to meet you both at the house for a valuation and pick their brains about the local letting market and sale timescales.

Seeing as you get on well, I'd sell now, probate and refurbishing allowing, and share the new house with the brother for the remaining months. That would take the stress of waiting off you, and takes care of your brothers' problem.