Can we ask family to buy us out?

[SNorth]

Hi I am in a bit of a dilemma .
We did own a house once, but due to various problems that I won't go into here we ending up selling up about 10 years ago and going into rented. It was supposed to be temporary, but life happened as it sometime does! I always thought we would be able to buy again at some stage.
We have lived in the current rented house the last 7 years. All appeared to be fine and we were just chugging along. But unexpectedly our landlord just gave us a section 21 as they want to sell up. It has come at a particularly bad time for us, several bad things happened within the family this year, and DH had to give up his long term job as the stress was making him ill. He is going to start work as a contractor in September, but is currently 'between jobs'. So the notice to quit is really bad timing. If it had come last year there would have been no problem getting another rental.

Now the complication is that DH does have an asset, in a part share of a commercial property that his DF left between him and his siblings when he died several years ago. The property is in another country, but one where property prices are high. If we had this money it would be (almost) enough to buy us a house outright (we live in a cheap area of the UK). DH's brother who I have the impression is very well off manages this property on behalf of the other family members. BIL said a few months ago that the time had come to sell. But then we heard nothing further for ages. Apparently the market is not that great at the moment, but I don't know whether this means they have had no offers, or just offers lower than BIL would like.
I have the impression that DH has not told BIL that we don't own our own home and that he wouldn't want to 'lose face' with the family by admitting this. But I would like DH to swallow his pride and ask if one or more of the other family members (a couple of them are very well off) could buy out his share. We really need the money as our housing situation is precarious. BIL probably doesn't even realise how important this would be to DH, to him it's just a bit of extra money to put in the bank and he sees no urgency. As property prices are high over there he probably doesn't even realise that we could potentially get a house over here with the money.

What do you think we should do, DH is very reluctant to ask but I am actually terrified of becoming homeless.

Dh needs to speak to his siblings and come clean about the situation you're in. It's ridiculous that he would put his pride before you being safe.

Tell him this kindly at first but if he stalls or makes a fuss, tell him that you would consider telling BIL yourself.

It might be that his siblings can buy him out or they'd have to sell. In the Uk if one owner wants to sell, then the sale can be forced if the other owners won't sell and can't buy out...not sure what the law is in the country where the property is though...that could complicate things.

Either way your only solution right now is to tell DH you've had enough and want him to get the money he has in the property.

Is he not getting any rental income from it? Who is using the property currently?

Thanks, Henny. No I'm not sure what the law is there either.

It is a basic hotel, currently the family runs it but only makes a very small profit from it. There are a number of family members who own shares. DH has had a share of the profits but this has been just a few thousand, quite negligible.

Of course you should.

Right....tackle him today or tomorrow. Lay it on the line. You're going to get in Do you have kids? Tell him that the reality is that you'll all end up in a hostel for the homeless...literally. There's no provision for families any more...barely any council properties and with him owning property abroad...well, they won't put you at the top of the list for sure.

Would the council know about the property abroad? And would that disqualify us from social housing then? Even though he's only part-owner?

If that's the case then it's another justifiable reason to put forward to BIL as to why he needs his share out ASAP.

Each council has it's own rules OP. But in the main, they're very short of housing and so have to consider who is in most need.

Owning or part owning a valuable property abroad would in all likelyhood mean that you won't be considered for social housing.

They can't give social housing to people who have other sources of income because there are thousands of people with absolutely nothing.

Even if your husband had to wait months to get his money from the property...it's still coming...so he's "ok".

It is indeed a good reason for BIL to move quickly. It might need spelling out to him.

Many people wrongly assume that councils "HAVE" to house people who are homeless...especially if they have kids but that is FAR from the truth these days.

If you do have children then councils must provide you with a roof...which more often than not means a bed and breakfast...all of you in one room with a kitchen and bathroom shared with other tenants. An awful way for a family to live.

If you don't have kids its even more difficult to get some temporary accommodation.

The council won't know about the property abroad but failing to declare it (and they DO ask specific questions about property you own) will result in prosecution as it's fraud. Serious fraud too.

You should not attempt to conceal the property...people have gone to prison for similar crimes.

Wow. So asking the council for help is out too then I guess. Our options are narrowing.

Yes BIL will need it spelling out, as I'm pretty sure he has no idea whatsoever of our situation!

The problem with getting the family to buy him out is that the real value is currently unknown. Yes property prices may even high in general but the price of any given property is only what a willing buyer will pay for it so if there is no sale then your DH's share is an unknown amount. Given that there's no rental income and a negligible occasional share of profits it may be that the true value of this "asset" is three eighths of bugger all. Getting a family member to buy him out could be problematic - what happens if the buy-out values his share at say £150k then the property is later sold with the real share value turning out to be only £125k - will DH be considered to owe his cousin £25k (and where will that come from?) or will the cousin just have to swallow the difference? And whatever happens in that scenario, will the same principle apply if the value after sale turns out to be £175k?

Do you have children North?

will DH be considered to owe his cousin £25k (and where will that come from?) or will the cousin just have to swallow the difference?

I don't think it works like that. The cousins will have to have the property valued and then pay the DH his share of that....IF they don't want to sell.

If prices change or if it doesn't get the price it was valued at then they have to swallow it.

Our children are young adults now and don't live with us anymore.

So you're even less likely to get help. Can I ask which county you live in? Some counties in the UK are in better positions with regard to social housing than others.

Another thing you should do right now is go on the website of SHELTER and read up on your situation. They have a helpline too...busy but very good when you get through.

Well I'd rather not say if you don't mind, sorry Henny. Already getting paranoid that I'll be identifiable! Please don't be offended. Looks like DHs situation has made us ineligible anyway for social housing. We've hardly had anything out of it though, and it's been years now. Over 10 years.

Understandable North I suppose it's just that if you were in say London, I could say confidently that you won't get social housing. There's the odd county with more than others available though.

Your best course of action is call SHELTER...they really are very good and speak clearly to DH.....he MUST seek to get his share of the property now.

Whether it's ten grand or a hundred...you need it and quickly. Also, DO call your local council housing department. They might be able to help you find another rental.

Many will help with th deposit and with finding you a landlord too...if you're getting benefits they will anyway.

Thanks for your help
You sound like you work in a housing department or have some experience in the area?

Definitely not London BTW

Don't forget that if you sell then you will probably have a liability to capital gains tax in the UK so the sale proceeds that you are expecting may not be as great as you think. There might be local taxes in the overseas jurisdiction too. If the family buy you out at an undervalue then for UK CGT purposes market value is substituted as you are connected parties.

Our Council keeps housing stock for over 50s, usually one bedroom flats. I know home-owner's who have been rehoused, I suppose It depends on individual circumstances. Seek advice.