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Original poster

House sold to a company, What could it mean?

50 replies

MovingOn13 · 01/09/2023 08:15

Hi
i’m hoping someone can offer some advice, I don’t own a home and an unlikely to ever be in that position so my knowledge is limited.

However, a relative of mine passed away, and I am one of the beneficiaries of the estate.
All she really had was her house.
The Will was straightforward, the estate to be split in percentages between family members, so naturally the executer (her daughter) put the house on the market, and the estate will be divided when it sells.

It has been reduced s couple of times and then suddenly disappeared from all online listings.

i know the obvious solution is to speak with the executor but without going in to all the specifics, she will communicate what she wants you to know, when she wants you to know it, and nothing more. Despite the Will being straightforward there has been numerous accusations flung around in the family and she has already ‘decided’ some people don’t deserve their share (I know that’s illegal but that’s a separate issue) So I don’t particularly want to ask her anything if I can help it, for fear it will spark something else.

Anyway, I don’t care about the money, but I am keen to know where I stand as I am on long term disability benefits and this money, whilst well intended could have a negative impact on me.
i need to have a rough idea of what I’m likely to receive and when so I know how it will affect me

Anyway, I contacted the former estate agent as a prospective buyer just to enquire why the house wasn’t listed either as for sale or STC and they advised that it has been ‘sold to a company’

All Google is giving me is those ‘webuyanyhouse’ type companies Who I gather give very low offers

But are there other companies who would buy a house?
Honestly, if I was told today I was getting nothing, I know it wouldn’t be legal given what the will specified, and certainly wouldn’t be what my relative wanted, but I’d be relieved to just know it was all finished

The stress the uncertainty is causing, alongside the grief, and other family issues is making me Ill.

As an aside, if anyone has used any of the webuyanyhouse kinds of companies, how low was the offer compared to market value?

OP posts:

milveycrohn · 02/09/2023 08:00

@MovingOn13
"the market the property was up for £240k and the probate document gives the net worth as 205k so I’d be looking at about 12.5k"
Was there an outstanding mortgage on the house, or were there any other debts, that would be offset against the sale value?
Once the house has been sold you can check the sale value on line. NetHousePrices, or other similar websites.
Theoretically, the 'estate' will include the money from any bank accounts, etc and technically the total value of goods (chattels), In practice, if this was an elderly person, the value of their household goods is likely to be negligible, unless they had some valuable items (jewellery or paintings, etc). Often these are specified separately.

AlmostThere2023 · 02/09/2023 08:28

MovingOn13 · 01/09/2023 12:26

@KnickerlessParsons As pointed out uo thread, it’s not just about having enough savings to not need benefits. It’s that this money won’t last forever, and once it’s gone, I will face numerous assessments to prove I have disabilities that I have already proved and been awarded for.

But looking at the amounts of money.
mid I inherit £15,999 assuming my bank balance is 0
Then I will lose £40 per week/£160 per month and will have a healthy savings balance.

if however, I inherit £16,001
Then I will lose £325 per week or £1300 per month, meaning that in 12 months I will have noyhinh and all I will have done is had the same monthly income I currently get. If we were talking about an amount of money which could offer financial security long term then of course I wouldn’t be concerned about the benefits, it’s the system that’s wrong, not the people who are part of it.

@FrenchandSaunders
The estate is being split as follows
1/4 to each of her 3 children
1/16th to 4 of her grandchildren. I am one of the grandchildren. One of her children is executor and none of the family speak.

@KievLoverTwo Thank you, this is similar to the info I was finding online.

@MovingOn13 this may have been covered already, but inheriting £16001 will not automatically stop ESA. There are allowable purchases that can be made when you come in to money which won’t negatively affect you. I.E. paying off debts/purchasing much needed items for your home/items to help make your life easier in terms of health. So it’s worth having a think about what you need/need to pay off if you have debts.

I would recommend getting an appointment locally so speak to a welfare benefits officer. If you inherit was over £16k, you could get assistance to have your ESA changed over to a contributions only claim (if you meet this criteria), meaning you will have a nil award until your savings come down and will reinstate once below thresholds. This will keep your LCW/LCWRA component in place.

It might be worth a quick chat with the executor from the point of view that you need the info to help you with your benefit entitlement, having an appointment booked would strengthen this. So your not coming across as pushy/judgemental/accusatory?

Itsjustmeee · 02/09/2023 08:37

The time to avoid getting the inheritance is before the person died 😂
either by way of a trust or bypassing you and going to your kids or someone else

a deed of variation after the death is no good to the OP if she is on benefits as it would be seen as depriving herself of this money in order to keep her benefits

Having had a family member do exactly this a few years ago I’m fairly certain it’s still the same rules

They got there parents to change the will before they died so that they didn’t inherit and it went to her kids instead
orginally they were the main beneficiary

FamBae · 02/09/2023 08:47

Jessbow · 02/09/2023 07:57

You may need to re do your sums.
if the split is 1/4 each to 3 children, tht only leave 1/4 to split between ( I think you said 16)
if the house sold for 240K, that only leves 60k to share between 16, only gives you 4K or am i misunderstanding?

Yes I thought that too.

AromanticSpices · 02/09/2023 08:54

FamBae · 02/09/2023 08:47

Yes I thought that too.

Show quote history

The estate is being split as follows
1/4 to each of her 3 children
1/16th to 4 of her grandchildren.

4 grandchildren, not 16!

MadinMarch · 02/09/2023 09:00

It's not the OP that needs to do her sums.....
The children get 3/16ths each, and the grandchildren get 1/16th each.

Seeline · 02/09/2023 09:20

The estate is divided into 4, with 3 children each getting 1/4. The remaining quarter is split between 4 grand children so 1/16 each.

MarshyMcMarshFace · 02/09/2023 09:28

Yes, @Jessbow and @FamBae you are misunderstanding. Not sure if it is the maths or the comprehension you have missed so:

4 grand children share one quarter of the whole. Which gives them one sixteenth of the whole each.

Each if the deceased 3 children get 4 sixteenths each (I.e a quarter), each grandchild gets 1 sixteenth each.

billybear · 02/09/2023 09:29

it sounds lioke quite a small amount so may not evan effect your benefits,think of a few bits you need for your house a few treats,and save the bit thats left,

Zonder · 02/09/2023 09:56

MadinMarch · 02/09/2023 09:00

It's not the OP that needs to do her sums.....
The children get 3/16ths each, and the grandchildren get 1/16th each.

The children get 4/16 each (1/4) and the grandchildren share 1/4 between 4 which is 1/16 each.

Sotiredmjmmy · 02/09/2023 10:03

@MovingOn13 The comment that the house has been sold to a company could well be a red herring - landlords and developers buy houses as a company everyday, there is nothing unusual in that at all, and the sale is the same as to any buyer.

Or yes it could have been sold to one of the businesses that go round buying up when sellers want a house sold quick, if so may have sold for a lower price

It doesn’t sound likely a hugely valuable property so your share may not vary much anyway. As you already know, you need to speak with the executor to get the details

mansviewpoint · 02/09/2023 10:04

Please try to speak to a lawyer but basically you don't have to accept the money you can 'disclaim' the inheritance, which may oddly be far more beneficial to you. Unfortunately it would be in it's entirety. Whatever you do don't believe anyone who says give the excess money away as it will still impact your ESA

LucyAnnTrent · 02/09/2023 10:05

"A company" may not be a "we buy any house" type company, but a legitimate multinational company that moves its employees overseas for a few months at a time and has a house for them. As a child, I lived near a house that was owned by Kodak for this reason. We had a succession of American neighbours! So this type of company would, I'm sure, pay the market value.

Fluffybagel · 02/09/2023 11:25

a neighbouring house to me was sold to a company and turned into a care home. They paid around 30k less than what the asking price was.

Bettysmum2023 · 02/09/2023 13:59

Along with the other advice re paying off debts and buying things you may need to bring down your capital for your ESA claim. You could always buy a prepaid funeral plan. That would class as an allowable expense.

AlmostThere2023 · 02/09/2023 15:21

@Bettysmum2023 absolutely, there are plenty of legitimate ways of bringing down excess capital. I have had many clients do the same, along with paying for power of attorney. Unsure of OP’s health but this might be a consideration whilst money is available.

ImNotWorthy · 02/09/2023 15:27

The executors of a will have a duty to obtain the best price when selling a house - or at least the best that is reasonable.

IMHO selling to webuyanyhouse type businesses would not be seen by the Probate people to be complying with that duty.

When DF died, it had been assumed that his house would be sold for the best reasonable price it would fetch, and the proceeds would then go into his estate for distribution. But then DB announced he would like to have DF's actual house as part of his legacy, so we executors had to have it properly valued, so that the eventual distributions (in equities) could be fairly proportioned between the beneficiaries of DF's will.

Can you get a free initial interview with a solicitor (this used to be offered sometimes, don't know if that's still the case)? If you marshall all the facts about the will, this might be enough time to get a bit more info about your options.

There is also the CAB. They are shit hot on benefits.

Triflingjelly · 02/09/2023 15:42

I hope this is helpful. I sold a property which was bought by a company to provide accommodation to the owners when they came to the UK from abroad. At the time I was doubtful as they stated they would pay cash and did not want a survey.

However, the sale went through speedily and the company passed all money laundering checks so for us it worked out well.

I do appreciate that this was an unusual occurrence but could this be the type of company your relative's property was sold to?

Wishing you well and that things get resolved with the executor.

Lorralorr · 02/09/2023 16:29

Other companies could buy a house eg a university, a church, any company needing a place for employees to live in

BillyNotQuiteNoMates · 03/09/2023 17:15

KnickerlessParsons · 01/09/2023 09:39

Anyway, I don’t care about the money, but I am keen to know where I stand as I am on long term disability benefits and this money, whilst well intended could have a negative impact on me.
i need to have a rough idea of what I’m likely to receive and when so I know how it will affect me

YAB a bit U here OP. If you don't need benefits because you have inherited some money, then that is a good thing. Benefits are to help people who would otherwise struggle to pay for daily life without them, whether that be due to illness, disability or otherwise.
Not all benefits are means tested, but it's right that those that are should be withdrawn if you acquire another source of income.

£12,500 isn’t really a life changing amount, and to get benefits reinstated after them stopping is a nightmare. You literally have to start from scratch.

gemma19846 · 03/09/2023 17:36

So you would rather refuse money that could help you out and keep claiming benefits off the state and tax payer when you dont need it? Thats just bizarre and selfish. Take the money and live off that until you NEED benefits again

LT1982 · 03/09/2023 20:48

MovingOn13 · 01/09/2023 09:07

Thanks for all the repkies
im on ESA, so it is means tested, I have considered refusing the inheritance but as has been pointed out, I could still be treated as having the capital of the DWP feel I refused I to retain my benefits.

I have a copy of the Will and am entitled to 1/16th of the estate when it was on the market the property was up for £240k and the probate document gives the net worth as 205k so I’d be looking at about 12.5k which would impact, but not stop my esa.

However, since it’s been sold to a company it could have been sold well below market value, which would obviously alter things so unfortunately knowing the % or even the probate figured isn’t helping much at present.

From what I know of the executor she wouldn’t be above selling for a ridiculously low price just to ensure others got less

I work in conveyancing. Limited companies can buy houses, not always a we buy any house type one, property developers or buy to let landlords often buy through a limited company so it may not be under market value

Happyasalamb · 04/09/2023 07:54

As other people have said there are a wide variety of companies that may have purchased the property.

Also do not confuse the price the estate agent put the property up for as market value. Market value is the price at which a willing purchaser and willing buyer agree the transaction after it has been on the open market. Market value goes up and down.

Many properties are sold below the price the estate agent puts on the property - doesn't make these below market value - the estate agent has overestimated the value.

Do not turn down the inheritance as this could still be deemed to have been received, also don't hide that this has been received etc. Do get support from an advisor to look at legal ways (pension planning etc) to reduce the inheritance for benefits purposes or how to temporarily put a hold on benefits if needed.

Muireann16 · 04/09/2023 20:07

As a volunteer at CAB we can’t and don’t offer legal advice. We can offer advice on your legal rights but OP is already aware of this.

Leavesaregood · 05/09/2023 08:34

Not about the original post, but if there is someone else you would like to give your inheritance to, e.g child or partner (but could be anyone), you are entitled to make a deed of variation so you do not inherit and it doesn’t affect your benefits. Someone you either trust to keep the money for you on your behalf, or that you would like to gift it to.

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