To not get loan for share of property that I do t want

[emotionalmess2019]

I'll keep it brief but essentially i own a sharedproperty with my siblings. Summer home in the south. We share equally, contribute equally etc . My parents are deceased and left this house and land to us in their will. It is in an expensive and much sought after location so property prices are inflated . One of my siblings wants out so besides the option of selling the whole property which sibling can force if it comes down to it, the other siblings would have to buy her out. This would cost me e40k which I do not have in cash . I would have to get a loan and pay hefty interest as you can imagine. I don't want any of this , neither do my other siblings. Our parents understood that the law is the law but wanted the house and land kept in our names and for their grandchildren in the future. They said this over and over throughout their lives . The land has been in the family for generations . I am
Gutted but trying to keep emotion away from it. Any advice or thoughts welcome .

I'd rather have £40K in my hand to invest as I wanted than stuck in a house that's largely unused and co-owned with several other people. I actually sympathise a fair bit with the sibling who wants to sell. Have you tried a compromise eg letting it for some of the year to give you all some sort of income over and above any rise in value?

I have no relationship with her really. She is money mad and has caused u told
Problems o the family so I'm
Wondering would it be a positive to buy her out? I just don't have the cash and resent getting a loan for this

Can you get a combined mortgage then do AirBNB for 8 months of the year by paying a cleaner and keyholder locally?

If your parents really wanted this house kept in the family, they could have tied it up in a trust to ensure that. I'm afraid you have to be pragmatic about this: your sister has every right to do this, particularly given that there will be some financial obligation on her and also that the arrangement leaves her with a lot of money tied up in a property from which she and her family derive minimal benefit. Therefore you either have to go along with the sale or bite on the bullet and raise the loan.

So far as the sibling who can't afford anything is concerned, they will be dependent on your goodwill. I guess you could get legal advice on the possibility of some sort of arrangement whereby they start paying their share if or when they are able to.

We haven t tried any compromise yet . My sister had not lifted a finger I. The maintenance or practicalities of the house . She would rather chew her own
Face off than organise the letting or any rental organisation . Two of us have done all of this over the years so she won't agree to that .

I'm sure this is upsetting, but your sibling is not doing anything wrong.

She does not have the same emotional pull to the house that you do. That's fine. You and your other siblings can refinance to buy her out if you want the house to that extent.

Your sister does not have to keep hold of her share because YOU are emotionally attached to the place.

Can you not see that it’s perfectly reasonable to not want a £160k fortnightly annual holiday??

I’m assuming with 4 siblings needing to raise £40k, that’s £160k she could walk away with to invest in her and her families futures.

This really is a luxury op, and luxuries cost money. You can’t begrudge her for making her choice, just as you have choices.

Yes, why can't you remortgage the property to buy your sister out and then rent it in the holidays to earn money? Each of you taking out a personal loan seems madness. Her proper professional financial advice

I wonder if we could get a combined loan?? Is that possible?? Would we buy other sibling out if she doesn't have money and offer her some weeks holidays during the year?

Sorry I meant get proper financial advice

I agree. The three remaining siblings should get a joint mortgage , I assume this will be for £120k . Then let the property out for holidays or long term and pay off the loan quickly.

It’s silly that a high value desirable holiday property in the south east is sitting empty for 8 months of the year.

I'd offer lower, much lower, and if she wants to take you to court, she will have to fund that. Make it plain if she wants to be bought out, then any access whatsoever to the property stops, and she will never set foot there again.

Selling will cost her in capital gains tax, estate agents fees, which I would m make her pay as you don't want to sell, and you can be as obstructive as hell on signing documents, filling in paperwork etc. Point out to her just how difficult you and your siblings can make this both financially, practically and emotionally. Does she still want to have an on going relationship with you all?

Sell. Shared property is a nightmare.

Choosing to sell her share of the house for market value is hardly 'ruthless'. She doesn't want it, and she has the right to sell it. If you want it, you will have to pay. She isn't being unreasonable at all.

Agree with joint mortgage and letting out property.

Hope property increases in value for you and greedy sis regrets her decision in years to come! 😀

If there’s 5 families involved and it's empty 8 months of the year then I can see it’s not worth the trouble of ownership, frankly! Surely you all only get to use it for a couple of weeks max?

Any reason why you can’t arrange a joint mortgage between the rest of you, and make a bit more effort to rent it a few weekends/weeks to pay for it?

I think you should sell it.

Tbh shared properties can be an absolute nightmare.

What will happen with your sibling who can't afford to pitch in to buy her out if you have a repair bill? Or when the time comes to replace a bathroom or kitchen?

I'd take one sibling wanting out as the time to sell up. Especially as renting it out to cover your costs will end up with tax to be sorted, gas inspections to be sorted as well as the practicalities of cleaning, sorting keys, advertising etc.

If the three of you want to keep it, the broad options are

• two of you buy out the fourth person. Raising your stake by 12.5%
• one of you does this raising the stake to 50%
• all of you set up a financial vehicle that allows you to buy it out but protect your personal position, see an adviser about this

Unless at least one of you can afford the cost of the loan then you will have to use the home to raise income through rental. I would suggest that it is rented out for 12 months of the year. If you want to use it then you pay the going rate (opportunity cost to the others) which can be offset by your share of the income.

Can you not get a joint mortgage on the property to buy her out?
If you do buy her out you must make it absolutely clear that she will not be able to use the house in the future.

It’s a nice idea, in theory, for your parents to have wanted the property to stay in the family but it has fallen at the first hurdle by having several siblings in the first generation- if you do manage to keep it together, there are likely to be even more joint owners in the next generation down ( the grandchildren) and multiplying on down. Complication upon complication.

To be fair, complications are going to arise at some point. It may as well be now.

Realistically, one property staying in family ownership is never going to happen forever, or you'll end up with grandchildren owing it in different percentage parts (assuming you and your siblings don;t all have exactly the same number of children) and at different times, as you all leave this world . If there's ever a divorce, it could get complicated.

Perhaps they need the money or feel prices will fall. Why they need the money though is irrelevant.

For all that, I don't have any answers and I don't know the legal situation, but it might be worth moving it on while the structure of ownership isn't too complicated.

scaryteacher - you'd seriously try to rip off your sibling and emotionally blackmail them because they made a different financial choice to you? Wow.

The sibling has suggested a fair buy out. They don't need to justify why they'd rather have the cash than the asset, as it's a perfectly reasonable decision to make.

How long could the property be handed down like this for anyway? Are you expecting 8 grandkids to share it, then 16 great grandkids? Someone will have to buy it out at some point.

I would in no uncertain terms tell your sister if you have to buy her out of the house she will never be allowed to set foot on yours and your other siblings private property again. And I would stick to that. Its unbelievable she is putting you all through e stress, money worried and potential court battle yet says she would like to come and go as she pleases afterwards. If you and your siblings put on a united front and say to her you will have to take us to court to get us to sell and once you have done that you or your children or family will never be allowed set foot on the property again. See if she then actually follows through when the consequences are laid out in front of her.

I agree that making someone keep 160k tied up in a property if they would rather sell, and put that into their own home for example, is unfair.

If any of you have mortgages then you are already paying interest that you would not need to pay if you sold and paid them off. On 160k this could be up to maybe 6k interest each year.

You don’t all have to buy your sister out. At the moment you all own 1/5 of the property. Anyone not involved in buying her out will continue to own 1/5. Anyone who buys her out will own the original 1/5 plus a share of her part.

It is easy to call someone money grabbing for wanting to take their inheritance while deciding you are entirely reasonable for wanting to keep HER inheritance where it suits you and want to cut her out of your life if she dares to want access to her own money.