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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

Sister wants to sell our jointly owned property aboard but I don't ??

155 replies

iwanttoholdyourhand · 31/10/2023 18:56

I need some advice. I jointly own a property abroad with my sister. We are both in our late 40s. She does not work and is on benefits.

She now wants to sell her share of said property and I don't . This property was gifted to us by our mother. It is currently rented out.

The country the property is located in the economy is really bad at the moment and it's already lost £10k of its value. The total value is now around only £50k. I want to wait it out and have plans to eventually semi retire in the country the property is in. I also have very fond memories of spending summers at this place. I really don't want to sell.

However, she wants out now and would like the money. I cannot afford to pay her in excess of £25k. I have suggested given her a small lump sum of £5k and then monthly payments of £500 per month over 3 years. She is angry and is not happy with this suggestion. She would like the money in one lump sum.

AIBU. I work full time and also have a young family. The money I give her will be tax free for her and also I don't think she will declare it to her benefits office.

I really don't want to upset her but think she's being a little unfair.

OP posts:
Totaly · 31/10/2023 19:01

Then she can take you to court - except she won’t.

Sirzy · 31/10/2023 19:02

If you can afford £500 per month could you not get a mortgage or loan to buy her out?

ultimatly even if you both pay out to go through courts etc chances are you would still have to sell

Harella · 31/10/2023 19:03

It’s going to depend entirely on what the laws are in this other country.

triballeader · 31/10/2023 19:05

Has she’s realised if she did this her benefits would be sanctioned.?

underneaththeash · 31/10/2023 19:05

I think your suggestion seems fine.

Icefoot · 31/10/2023 19:07

Ultimately if she wants to realise her asset , she's entitled to. As PP said if you can afford to buy it over 3 years, can't you borrow the money to buy her out?

DisforDarkChocolate · 31/10/2023 19:08

Honestly, she wants and needs the money. Why do you feel entitled to deprive her of that? Of her money? If you can't buy her out then you should sell.

PickledPurplePickle · 31/10/2023 19:08

Is there any capital gains tax she also needs to consider?

Frenchfancy · 31/10/2023 19:09

The trouble with your suggestion is that legally she would still own half.

You need to do it properly using a local lawyer.

Whataretheodds · 31/10/2023 19:09

If you can't buy her out (have you investigated getting a mortgage?) then you'll have to sell.

PivotPivotmakingmargaritas · 31/10/2023 19:09

YABU - she wants out if you can’t buy her out then yes you need to sell.

LaurieFairyCake · 31/10/2023 19:10

Just say that's your decision and she can go to court

Bet she doesn't

RaininSummer · 31/10/2023 19:10

As above. Her benefits will cease. Not a sanction but she just won't be eligible for UC with over 16k savings. Even if she is currently not moved to UC, when she is migrated, even without selling the property, she will have to declare it as capital I think.

Mum5net · 31/10/2023 19:10

Will she get the £500per -month and 50% of rental in next 3 years?
I think you have made a fair offer even without the rental
income

Londonscallingme · 31/10/2023 19:10

PickledPurplePickle · 31/10/2023 19:08

Is there any capital gains tax she also needs to consider?

The OP said it’s lost value (presumably she means since it was inherited) so no gain to pay tax on by the sound of it.

edit - gifted, not inherited.

MrsTerryPratchett · 31/10/2023 19:11

If you want to retire there, find a way to buy her out. But tell her you will be declaring everything. Her benefits and taxes might put her off.

zurala · 31/10/2023 19:12

YABU you'll have to buy her out if you don't want to sell it. Could you get a loan?

Teder · 31/10/2023 19:15

Depending on the law in that country, she may be able to force the sale. Do you have a good relationship with her? Is it worth it?

Zanatdy · 31/10/2023 19:15

Does she realise if she gets it in one lump sum her benefits will stop? Even at £500 a month she’s going to have to spend it or risk saving up more than the max you’re allowed. If she wants to sell though and won’t accept this suggestion, i’d suggest you have to sell. Or don’t, and she takes you to court, which might not even be possible if it’s overseas

BIossomtoes · 31/10/2023 19:16

Get a loan and buy her out.

Tinkerbyebye · 31/10/2023 19:18

You could try and get a mortgage?

or tell your sister if she wants out to take you to court to force a sale no doubt it would have to be done in that country , or accept your offer

however I would be reporting to the benefits people, sister or not

Sealady19 · 31/10/2023 19:19

You are being totally sensible and understanding in a wise and considerate way with your sister. You have the right vision, do not change your stance, you are on the right track, she would waste the money gained pretty soon any any way and then she'd be deprived of this last resource.

Lizzt2007 · 31/10/2023 19:20

If she's in receipt of income related benefits then it's likely they're taking into account her interest in the property. I'd guess that she's been on tax credits and is migrating to universal credit. On tax credits the value of her share could be treated as savings, and since there was no limit didn't affect it. That's not the case on universal credit, the value of the property would be treated as savings and her benefit would end. Sorry op but you're being unreasonable, if you want to keep it then you have to find a way to buy her out. I'm going to guess she probably can't afford to use it much either if she's on benefits so it's likely not any benefit to her to keep it. Your offer seems plausible to you, however that £500 a month will be treated as income by the benefits office, so again, if no benefit to her.

Loubelle70 · 31/10/2023 19:22

No other option than youve offered...youll have to buy her out by possibly getting 2nd mortgage or loan. Legally she's entitled to half. Does she get half the rent from tenant x

Strawberryfieldsforeverrr · 31/10/2023 19:23

That money may be life changing for her, you need to buy her out or sell.

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