Hi,
I have a problem and need some advice! 15 years ago my dad bought a flat. My sisters lived in it, as did I...then I moved to London but as it was in my name I could never get another mortgage - even on 80K in London, i couldnt get a decent flat. Eventually, sick of renting at 1k per month, I came home, and asked the tenants to leave and completely renovated it - spent about 25k. Then I got married had babies etc, stayed there etc.
We now have to sell. Morally, im aware that I need to give my sisters something from the sale but am unsure how to calculate it.
So far, what I have done is - adding up mortgage liabilities, money I spent on getting it to an inhabitable state. I dont feel like i should have to divide it equally by three however, as I was forced to rent for ten years while they lived there with subsidised rent (and trashed the place to boot).
How do I work this out fairly? They have since been given deposits for their own places, one from my mum, the other from her MIL. Neither is paying back that cash but I do need to pay back my dad as he needs it.
Secondly, is there a tax liability if I gift them money from the proceeds or would it be better to repay my dad and let him distribute it?