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..?
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 valuation and has increased the value of the property. there is also ongoing maintenance, exterior painting and looking after the gardens and fencing etc.