Buying somebodys share from an in-herited property

[r14jrj]

I have been confronted by a friend of mine who's mother recently passed away and has left her house (fully paid for a long time ago) to him and his sister.

the house is worth approx. 120k and his sister has been living their with her daughter for the last 5 years with the mother who recently passed.

my friend simply wants his cut out of the house but his sister is still living there with his niece and she hasn't the funds to pay him out or get a mortgage to do so.

he mentioned charging her rent each month but he doesn't want the hassle of becoming a landlord as he is coming to retirement age and has asked me if I wanted to buy his share of the house

has anyone ever done anything similar to this before? could I make him an offer and simply start charging his sister rent each month? and anything that needs doing to the house me and his sister split halfway?

I guess I will need a solicitor but is there anything else I need? how do I pay him?

[Saleen836]

And if the sister refuses to pay any rent or sign a contract?

[NickCQ]

Saleen836 said:

And if the sister refuses to pay any rent or sign a contract?

Or fund her share of maintenance / repairs?
I would really think long and hard about this one as you risk losing a friend, money or both.

[r14jrj]

NickCQ said:

Or fund her share of maintenance / repairs?
I would really think long and hard about this one as you risk losing a friend, money or both.

I don't see me losing the friend as he has approached me? and his ideas were just like mine but he doesn't want the hassle of repair bills etc as he simply just wants his chunk of money and be done!

how can she not sign a contract or pay rent? will we not both have equal share to the house so we have to have an agreement?

[LeoSayer]

r14jrj said:

I don't see me losing the friend as he has approached me? and his ideas were just like mine but he doesn't want the hassle of repair bills etc as he simply just wants his chunk of money and be done!

how can she not sign a contract or pay rent? will we not both have equal share to the house so we have to have an agreement?

How is the sister going to pay rent if she can't get a mortgage on her half?

Has she been living rent free for 5 years in this property?

I think your friend also doesn't want the hassle of asking for and collecting rent from his recently bereaved sister.

If you want good value for money then you'll have to negotiate hard on the price and hard on the rent. What do you think that will do to your friendship and your friend's relationship with his sister?

[Sarnie]

Sounds like the friend will be ecstatic to receive a lump of money he wasn't expecting and release him from the property commitments including a sitting tenant family member who doesn't sound like she has the means to pay rent or contribute to repair bills?

I'd swerve this unless she was moving out........

[nitrodave]

sounds complicated and potential to get messy.

easiest thing to do is for the sister to into rented accommodation and the house to be sold

[anonymous-user]

I'd say it's only really worth doing if you can get a massive discount and sit on it without income until the sister wants to move out.

Even then it would need to be papered properly.

[r14jrj]

thanks for the replies.

the sister has been living rent free for the last 5 years yes, and probably hopes she can continue to do so

my "friend" wants to sell the house but I think he is nervous to ask his sister as if it sits there he wont be getting anything out of it until they sell up which I doubt will happen.

I guess she will want to live in there until her time comes but then I guess her share gets passed onto her daughter who may never want to sell either? the sister is mid 60's and daughter is mid 30's and neither can get mortgage to buy him out which lead him on to ask me

I think ill give it a miss

[Saleen836]

Does either the sister or her daughter work?
If the house is sold the sister gets 50% ish deposit for her daughter to get a mortgage for the remaining 50%ish to by somewhere else?
Or the £50-60k will pay the rent for a fair old few years.

[Sheepshanks]

r14jrj said:

....will we not both have equal share to the house so we have to have an agreement?

"We"?

[Saleen836]

If the sister doesn't work her inheriting half a house might affect her benefits?
Found this old thread which might be worth a read...
http://forums.moneysavingexpert.com/showthread.php...

[Pickled]

What about one of those equity release places?