Inheritance - My brother wants a property which is worth 110% of his 'share'...

[quandry]

My Dad left everything divided equally between four of us:
Me
My Brother
Grandchild 1 (my child) (in trust until 21)
Grandchild 2 (my child) (in trust until 21)

For the sake of simplicity, let's say the estate is worth £400 K, so we are each entitled to £100K.
There are two properties, and my brother wants one of them, but is is worth £110K.

He has no money to 'buy out' the extra £10k.
He cannot get a mortgage, as has poor credit record and irregular income.
He has said he also 'needs' an extra £5 K to move/ renovate the house etc.

I am happy to 'help' him by 'lending' the extra £15K, but I'm not sure how to do this under the terms of the will/estate?

• Am worried about how to ensure I get my money back?
• I don't really want to part-own the property, as I am worried about being linked to him in any way on credit searches etc and being responsible if he defaults on any bills etc.

Should I just set it up as a loan, repayable when he sells the property, of gets more income? What rate of interest should I charge? Could I link it to the growth in value of the property?

I am really going round in circles trying to think this through.

Didn't realise this was an old thread. How annoying.

Selling houses will cost a % in legal fees, estate agents etc.

I would just get the deed of variation on it.

You sound quite grabby with your 'what rate of interest should I charge' etc.

Over the years my siblings and I have often lent each other big amounts of money, as have our parents. Never would we charge interest. Indeed for many years my sisters savings lived in my account reducing my mortgage!