friend buying out relatives.

[bumblebee1000]

Friend discussed with me about buying out 2 relatives on an inherited property, some legal advice obtained, free 30 min chat. friend has paid rent to the others for time living in the house and is now buying them out. It was agreed that they be bought out later along the line. Level 3 survey and RICCS valuation done at 200k, friend has spent 25k on the house as was in poor condition. The relatives haven't contributed anything to the maintenance or improvement etc over the years. Would the 25k be deducted from the value of the house, so 200k less the 25k = £175000, divided by 2, = £87.500 each sibling. Looking for a fair way to calculate the offer. Or is there a better way to calculate this..?

Ive bought relatives out of an inherited house. Was the 25k agreed or did your friend do it without input and agreement? Was the 25k on structural improvements like replacing rotten windows/ roofs or was some/ all of it on cosmetic changes like painting/ decorating or even adding a new kitchen? Was the 25k spent after the valuation or before e.g. did that 25k investment meaningfully add value to the property? Was the rent market value as suggested by someone independent or a token amount?

Property disputes like this are fiddly and not clear cut. If there is a hint of anyone getting legal over it then it could easily eat up the full equity so I would try and agree and if they can't honestly sucking up the 25k will be the least expensive option.

In general if it was a large, essential piece of work such as replacing a damaged roof or major structural issue surely it should be split three ways so 2 relatives would get 91.7k. If it was outdated carpets, new bathroom suite then I dont think it should come of the purchase price as its for the benefit of the occupier.

Thanks, a little background, friend was helping to look after the relatives parent until passed away, the rent amount is accepted and agreed. the majority of the work was essential, roof, windows, kitchen and bathroom as those were all in very poor almost unusable condition. a survey and valuation was done when friend took over the house and highlights all this. the 25k was spent before vauation and has increased the value of the property. there was also ongoing maintenance, exterior painting and looking after the gardens and fencing etc.