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

[GertrudesGreens]

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!)

We're not swindling her, we have a solicitor acting for all of us.

I should have specified she has not purchased the property (in our case). Sorry for derailing the thread, OP.

Hahaha I am literally loling !

Oh man this thread has taken a turn hasn't it?

Why did you say “she’s giving us half the value of the house each” then?

Do you mean that there is a house and a large sum of money in the estate and you are getting more cash than her as she is keeping the house?

That makes sense but is nothing like what you said and nothing like the OP’s scenario.

I really don't understand what you are doing then.

@33goingon64 so if you and your brother are getting half the value of the house each but no money is changing hands, where are you getting 'half the value' from?

You're contradicting yourself now.

You can only have a share in what the value was at the time it was valued.

It was in need of pulling down due to renovation not being practical.
We all had a chance to contribute to a new build but it wasn't something the 3 of us wanted to tie ourselves up with, planning, having the initial funds to do so, chance of building cost going up.
No regrets here though.

Yes you need a solicitor to represent you as the seller and sib needs one to represent them as the buyer of your share.

It may be that the solicitor handling the execution of the will in which the property was inherited might be able to act for you as it's part of the estate if it hasn't already completed probate

OP, when my Dad died, my brother paid me half, but in yearly payments, so Solicitor applied to Land Registry to put the house in both our names until he had paid me all the money. I would do this first and presume it’s the same process that when you’ve received the money, the land registry needs to change to her name only. I would check with a Solicitor though what the actual process is and if anything else needs doing.

My DD has just bought out my Dsis. The purchaser gets a solicitor, as does the buyer. The purchaser can use the inherited equity as a/part deposit. The usual mortgage requirements need to be done, searches, energy efficient certificate etc. It's subject to individual circumstances/mortgage company if a survey needs doing. Sometimes an additional insurance is a mortgage requirement. My Dsis solicitor had to construct a title deed, we had lost the original deeds. It isn't necessary to re-register the property in your names. My DDs conveyance was £1400 and my sister's a similar cost. That barys city to city though. We had to produce the will and probate for both solicitors.

The usual mortgage requirements need to be done, searches, energy efficient certificate etc. It's subject to individual circumstances/mortgage company if a survey needs doing.

This might mean I can't just complete the land reg ID & transfer forms once sibling plonks 50% of the house value into my bank account. that's what would stop it.

i'll discuss with sibling to ensure this might be spotted/what the mortgage company might stipulate.

thank you (all). interesting turn of events during the thread but super useful. i'm feeling slightly less stupid about what (should be!) a fairly straightforward friendly "i want to buy it" (sibling 1) and "i want to sell it" (me) situation. fortunately we're both close nad on good terms, so this is all simple from that POV. clearly reading about other families and complexities it seems there's a lot of stress/emotional heartache when this topic crops up in other scenarios!

I mean she isn't buying the house. Hence no money changing hands for that part. She is then giving us cash worth half the value of the house each. I didn't say it was exactly the same situation as the OP.

But surely you are only entitled to a third each.

Well then you are conning her. She pays you 300k, your brother 300k, she is left with a house worth 600k but no equity. So no money effectively. She should give you 200k, your brother 200k, and she should keep 200k.

Surely she also inherited a third, so you and your brother should only get a third each?

What on earth? No you've robbed her mate.

Why is she giving you half the value each? Did you and your sibling solely inherit and she didn't?! If not why is she having to buy the whole house? This is really dodgy and I hope she has sought legal advice.

So, currently, does the house belong to all 3 of you? Or do you and your brother own it and your sister is buying it off the 2 of you?

Because if it currently belongs to all 3 of you, then you each own 1/3, so say it was worth 300k then you all have a 100k share each, so you’d sister gives you and your brother your 100k each, keeps her own 100k then would own it all. But you’re saying she’s giving you half each, 150k, so she’s giving you her 100k share too, how is that fair?

Yes. It's simple maths

What? That makes no sense, what happened to her third she already owned?

Then she is bloody stupid and you 2 are diddling her out of her one third share if there are 3 of you.

They nicked it

.... and this is why everyone should get their own solicitor 😂