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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

To ask you to explain how buying out a sibling works for an inherited house?

70 replies

GertrudesGreens · 21/04/2023 14:30

I'm so confused!

Sibling and I have inherited a property 50/50. We have a good idea of what it's worth (had 3 valuations) and agreed for sibling to "buy me out" at the average market value.

There's no mortgage on the property but sibling will need to raise a mortgage to fund the buying out. I've been reading online and i'm more confused than ever!

Do we need 2 separate lawyers to act for us?
The property won't go on the open market so don't need an estate agent. And do we need to decalre that no stamp duty is due (house is worth less than 100k).

Or can we have 1 lawyer just sorting the legal paperwork for both of us?
Or just an online conveyancer? (1 or 2?)

We are keen to do this all above board, properly, but i'm not sure what professional to approach to kick the process off,or how many need to be involved.

(We have grant of probate/all the paperwork and valuations to proceed with sale, jsut not sure what firms to line up to make it happen. Sibling is hoping her appointment with a mortgage advisor will make next steps clear but my attempt to google aroundit beforehand today has failed!)

OP posts:
Original poster
GertrudesGreens · 21/04/2023 15:53

i'm assuming the answer is either so complex due to the sibling/inheritance but needing a mortgage thing that i need to speak to a lawyer (or do i? a conveyancer).. or it's so super obivous that a lawyer for each party is needed that i'm being really stupid 😂

i guess i'll find out when i ring a few recommendations of law firms next week 😆

OP posts:
ZeroFucksGivenToday · 21/04/2023 15:57

My ex bought me out of our house. I had to fill in a land registry form to sign it over to him. He transferred me the cash. That was it. I didn't have a lawyer for that part.

he remortgaged to cover what he owed. He just had a valuation done, agreed with me what I was having. His solicitor dealt with the mortgage side and he got the cash.
bank transferred it to me.

not sure if we massively simplified it. But that was it.

Soontobe60 · 21/04/2023 16:00

My friend bought out her sister’s share in their mums house. She too took out a mortgage. They each used their own solicitors.

Original poster
GertrudesGreens · 21/04/2023 16:08

@ZeroFucksGivenToday that does help.. i see forms at the land registry (ID forms and a transfer form) which i assumed would be used.. but i'd thought using a lawyer (at least 1?) or a conveyancer would be required.. esp as a mortgage is being used to fund it.

but you've just confirmed my assumption might be utter nonsense. that's handy!!

OP posts:
tailinthejam · 21/04/2023 16:13

You could always just use the solicitor who is dealing with the estate and probate?

EustaceTheMonk · 21/04/2023 16:40

DC1 bought out DC2's share of their grandmother's property. As she was getting a mortgage to do it, the mortgage company insisted she got a separate solicitor, otherwise the firm dealing with Granny's estate would have been happy to do the whole thing.

UpdownUpdownAltogetherNow · 21/04/2023 16:49

You’ll need two solicitors because there is a mortgage.

Crumpleton · 21/04/2023 16:49

One of 4 siblings.
Property valued at 600k.
Sibling that purchased the property paid £150,000 to each sibling.

Original poster
GertrudesGreens · 21/04/2023 19:15

Ah there's no solicitor involved in the estate. Not complex or high value so just being done without legal help. Not much money in banks etc so getting it sorted has been easier than having a lawyer slowing a simple estate up for the executor

OP posts:
FpTr3952fHp · 21/04/2023 19:26

You may be able to do it yourself by filling in a form and submitting to the land registry, it's a bit of a faff but will save the solicitor fees. The only reason we had to involve a solicitor was to do the part of proving our identities and one was needed for a separate issue so did it all together.

33goingon64 · 21/04/2023 19:48

Crumpleton · 21/04/2023 16:49

One of 4 siblings.
Property valued at 600k.
Sibling that purchased the property paid £150,000 to each sibling.

So the siblings who got the property could sell the house tomorrow and get 600k and you 3 have only got a quarter of that value each. We're going through same at the moment. DSis is giving me and DB half the value of the house each. Because she keeps the asset.

PaigeMatthews · 21/04/2023 19:51

33goingon64 · 21/04/2023 19:48

So the siblings who got the property could sell the house tomorrow and get 600k and you 3 have only got a quarter of that value each. We're going through same at the moment. DSis is giving me and DB half the value of the house each. Because she keeps the asset.

Show quote history

The sibling who got the house bought it for £450000. If they sell it for £600k they make £150000. They same as the other siblings.

you and your db are conning your sister.

GuinnessBird · 21/04/2023 19:51

33goingon64 · 21/04/2023 19:48

So the siblings who got the property could sell the house tomorrow and get 600k and you 3 have only got a quarter of that value each. We're going through same at the moment. DSis is giving me and DB half the value of the house each. Because she keeps the asset.

Show quote history

Yes because £600K divided by four is £150,000?

I can't see what is wrong with that?

pippinsleftleg · 21/04/2023 19:58

PaigeMatthews · 21/04/2023 19:51

The sibling who got the house bought it for £450000. If they sell it for £600k they make £150000. They same as the other siblings.

you and your db are conning your sister.

Show quote history

Agreed - your sister will end up with no value from that house if you and your brother take half each.

trulyunruly01 · 21/04/2023 19:59

The sibling who bought the house only had to buy three quarters of it because he/she already owned a quarter!
The sibling who has inherited a third of a property only has to purchase two thirds of it!
Good lord.

GuinnessBird · 21/04/2023 20:01

This thread demonstrates why Sunak wants more maths education.

PaigeMatthews · 21/04/2023 20:02

pippinsleftleg · 21/04/2023 19:58

Agreed - your sister will end up with no value from that house if you and your brother take half each.

Show quote history

Theyve actually stolen their own sister’s inheritance. It is actually awful. When someone points out to her what her sister and brother have done to her how will she be able to forgive them? This selfish greed will destroy their relationship.

UnsolicitedOpinions · 21/04/2023 20:02

33goingon64 · 21/04/2023 19:48

So the siblings who got the property could sell the house tomorrow and get 600k and you 3 have only got a quarter of that value each. We're going through same at the moment. DSis is giving me and DB half the value of the house each. Because she keeps the asset.

Show quote history

Are you serious??? The person in question has just paid out £450,000 to get the house. So if, like you suggest they sell it for £600k tomorrow they would have £150k, just like their siblings (except they may also have a lot of expenses and tax to come of that so be the worst off of all 4 siblings).

If your house was worth £600k and your sister gave you and your brother £300k each and then “sold it tomorrow“ your sister would have nothing and you and your brother would have half the value of the house each.

Your sister needs legal advice asap!

toomuchfaster · 21/04/2023 20:03

GuinnessBird · 21/04/2023 20:01

This thread demonstrates why Sunak wants more maths education.

🤣🤣🤣 absolutely!!

maryberryslayers · 21/04/2023 20:03

@33goingon64 but the sibling who keeps the asset has paid out their own money to the others prior to selling, so their share sits at -450. If the property then sells for 600, 600 - 450 is 150, so all get an equal share.

I think you need to recalculate before you take too much from your Dsis. If she pays out the total value to you both, then sells and gets back the total value, her share would be £0.

budgiegirl · 21/04/2023 20:05

DSis is giving me and DB half the value of the house each. Because she keeps the asset

So she's paying you for the full value of the house? What happened to the third of the house she inherited, and therefore already owns. She should only be paying you a third of the house each

PaigeMatthews · 21/04/2023 20:07

33goingon64 · 21/04/2023 19:48

So the siblings who got the property could sell the house tomorrow and get 600k and you 3 have only got a quarter of that value each. We're going through same at the moment. DSis is giving me and DB half the value of the house each. Because she keeps the asset.

Show quote history

@33goingon64 she doesn't ‘keep the asset.’ She bought the house for the full
value from you and your brother. You and your brother sold your sister the house you ALL inherited. You conned her out of her inheritance.

she didnt inherit anything.

angelikacpickles · 21/04/2023 20:07

33goingon64 · 21/04/2023 19:48

So the siblings who got the property could sell the house tomorrow and get 600k and you 3 have only got a quarter of that value each. We're going through same at the moment. DSis is giving me and DB half the value of the house each. Because she keeps the asset.

Show quote history

You are swindling your sister out of her inheritance.

PaigeMatthews · 21/04/2023 20:08

maryberryslayers · 21/04/2023 20:03

@33goingon64 but the sibling who keeps the asset has paid out their own money to the others prior to selling, so their share sits at -450. If the property then sells for 600, 600 - 450 is 150, so all get an equal share.

I think you need to recalculate before you take too much from your Dsis. If she pays out the total value to you both, then sells and gets back the total value, her share would be £0.

It wouldnt be £0 as she would have thousands in costs in buying a house.

She would be losing money.

33goingon64 · 21/04/2023 20:24

Hang on before you all pile on. She's not paying anything! No money is changing hands. She gets the house for 'nothing'. We get half the value of the house each. So if she sells it she gets the full value.