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 .

Sell.

You and other siblings could buy somewhere cheaper in a different place or agree to have a yearly family holiday in a rented place you don't have to maintain.

You mention house AND land in your OP. Is the land substantial? Could you raise enough from a sale of all or part of your land to buy your sister out and keep the house on?

The four of you get a joint mortgage for the amount agreed with your sister - I'm assuming she wants 160k, but you are in a good position to negotiate as it will avoid court.

You can then make a decision on rental to cover the mortgage costs, possibly Air B&B as already suggested or a holiday let.

If the sister you buy out wants to holiday there then she will have to pay for the weeks she wants (if they're not already booked) as she will have no ongoing interest in the property.

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.

Jesus wept! You're suggesting she bar her sister from visiting her because of this? Bloody hell

The sister isn't 'greedy' (as a pp said) or unreasonable at all. Selling an asset is normal, and will have to happen at some point anyway.

I'd offer lower, much lower, and if she wants to take you to court, she will have to fund that.

Seriously bad advice. If she has to take this to court against your resistance, she will win and will get an order that costs be paid either by the defendants or out of the value of house.

Although obvs her sister wouldn't have any right to stay in the holiday home without paying. Fair's fair.

Perhaps if those of you who can afford it
buy out the sibling who wants out you could change the proportion of the house that you own. For example, if you all currently have 20% and you three of you buy out one sibling you three will then have approximately 26.6% of the house each. You three pay a little more maintenance but have a little more of the asset. If you only have to buy out 20% the interest rate should be low. I'd be charging greedy sister holiday rental fees if you do this. She can't have it both ways.

@hillrunner the consequence of all siblings owning the property is that they get to use and access it. Obviously they get some enjoyment out of that or they would all just sell out straight away. This sibling wants to remove all hassle from the house for her around maintenance, get a nice lump sum to spend as she pleased yet STILL get all the benefits of ownership by visiting and staying whenever she pleases. This is so unfair on the other siblings. If she wants to sell up her share then that includes dealing with the consequences - otherwise she’s just taking complete advantage of her siblings.

Have you discussed charging her market rates for the two weeks she uses it for ?

A family members parents left their house to 4 siblings
After deaths, divorces etc 9 people ended up owning various shares until it became impossible to manage and they sold it - even arranging that took over a year!
As time goes on this will only get worse not better and if any of you have dc it will be for them ( and/or gdc) to try and sort out
It was a nice idea but if it wasn’t left in trust then you should just get rid of it now before it becomes even more of a problem

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.

Why wouldn't she? OP and the other siblings would have no defence to the claim so she'd get her order for sale relatively quickly and easily, and she would recover her costs of having to go to court.

It's simple really. The terms of the will were that if one party wanted to sell, the property should be sold. Sensible. You should sell it.

Hillrunner Having been through all this type of shit with mil threatening us with court, to try to subvert fils will, then yes, I would. The sibling who wants out is blackmailing the rest with the threat of expensive legal action. I'd let her go through with it , but have my legal costs deducted from her share of the profit as a condition of sale, plus any CGT incurred, and all selling costs from EA fees down to any problems thrown up by the survey. How much would she have left if each sibling had that as a condition? Why should the wishes of one be greater than the wishes of the other 4 or 5 siblings?

how much is the property worth?

If I owned a 160K share of a property, with letting it not an option, I'd think of that as possibly 5% x 160K = 8K a year of investment returns foregone.

Is the time you spend in the property worth 8K a year to you? I can understand why your relative wants to sell, struggling to understand why you don't.

@acis I meant the consequence of never being able to go to her family home again. oP said in a follow up post she envisages being able to use it whenever she wants even though she’ll have sold her share. Never being able to go again (which is what happens when you sell the family home normally and she does want to sell it from her perspective) is the consequence of selling her share. She might rethink once she realizes she can’t just visit as and when she pleases.

Sorry haven't read but can't you basically securitise the income stream from renting it out to buy out the sibling, so they get the money but slowly? Would need contracts drawn up by solicitor obviously but worth looking into and exploring with exiting sibling?

In summary, I think anyone who wants to sell is more reasonable than those that don't, and anyone who wants to control what someone else does is being utterly unreasonable.

You have 2 options.

1. sell up

2. 3 of you buy her out with a joint mortgage. House ownership will now be 26.67% / 26.67% / 26.67% / 20%. If the house gets rented out, income will be due to each of the 4 remaining siblings in accordance with those percentages. If she wants to stay, she pays market rate (just like you paid market rate for the house).

I presume that you each own 25%, you say your share of her share would be 40K therefore her share must be worth 120 K so whole property approx 480k
options

1. you each pay 40K to buy her out and own 33.3% each
2. you raise the 120K between you not necessarily in equal shares ownership then reflects this could be you still 25% the others 37.5% each
3. you sell it and each take 120K,

if you buy her out, she then can't continue using the property without paying market rent
once you have bought her out is there the possibility that you could sell off a small part of land for another house to repay the loan ( beware though she may be advised by a lawyer that for X number of years she would be entitled to a share of any profit made by subdividing the plot annoying though this would be it might be a price worth paying
you rent it out for the minimum number if days required by law as a holiday let to help pay off loan faster

you have to decide whether you would rather take a loan to keep the house or whether you would rather reluctantly sell
Can you afford a loan but don't want to have to take one out or can you just not afford the repayments
you need to met with the other 2 to decide whether even between you, you can really afford to buy her out
but you are right she can force a sale to collect her inheritance
I would suggest you get 3 independent valuations so you know what the value actually is rather than estate agents listing wish price

if she goes to court you might costs awarded against you

Hillrunner Read what the OP has written about this sibling. You may have an idyllic relationship with your family....not all of us do. If the OP is being forced to do what she doesn't want to do, indeed, coerced into it, why should she play nice thereafter?

If you buy her out then she wouldn’t be using it for holidays any more (not without paying anyway) - it’s bad enough that she leaves all the work to everyone else now but if she also takes the money then she can’t expect to enjoy the one benefit the rest of you get.

You really should try and rent it out though - sounds like it’s a large property, lots of land, could be a very marketable holiday let and even if you hired companies to run it for you, you’d still benefit financially.

Is it a very large house (eg could be used for corporate events etc)? If so you really could do quite well out of it, and the cost of buying her out would be paid off sooner.

Technically you could get a joint mortgage but that’s quite difficult when there are multiple people involved in different financial situations.

I think you should sell. You only use the house over 4 months between you all. Buy another property between three of you if you feel the need to have a holiday home. Personally I support your sister as I would never want to be financially tied to anyone, apart from Dh. Your parents wishes were just that, wishes, not a legal requirement to keep the house. Her reasons for wanting to sell are nobody's business.

But at the moment the sister is being forced to forgo a very considerable amount of money because her siblings want to use the house for 4 months of the year. Why should their wishes trump her's? Just because there are more of them? buying her out in that situation is a perfectly reasonable alternative so there's no need to create and escalate a whole family feud about it.

Combined loan with the property as collateral will be difficult.most UK banks don’t like securing in a foreign place and banks in the location of the property may not like foreign borrowers, esp if the house is in a
EU State with an unsolved Brexit.

Friends had a problem like yours, in the end they looked hard at what the property really meant to them, especially as it was unoccupied for so long a year. They started resenting feeling obliged to spent their holiday there, when children came and had their own wishes about where to go,these took precedence to going to the family home.

They sold it, two bought apartments in the same area as they liked it but kept it more as a business.