Property dispute advice

I co-own a property with my brother in the UK, which came about as the result of an inheritance.

We can’t agree on what to do with the property now that probate has gone through.

I have no plans to return to the Uk and would like to sell up.

My brother lives in NZ, but is planning to return to the UK in the next couple of years. He wants to rent it out between us initially and then buy me out down the track. At the moment, he can’t afford to buy me out hence the need for renting it out until such time as he heads back and can get a Uk mortgage.

I can foresee lots of problems if we try to manage the property together from such a long distance and it is also an old property that needs some maintenance before it is rentable anyway.

The problem is that my brother is digging his heels in and communication has now broken down between us.

Has anyone been through something similar? I will be seeking a lawyer for advice, but I thought I’d ask if anyone has experienced this type of situation before and had any tips for me?

I would prefer to work something out between us if possible rather than bringing in lawyers, but I don’t know what else to do.

 

Why not just lend him the money so he can own both shares and avoid the problem.
Life is too short to have a family dispute.

 

I don’t have the money to lend him unfortunately.

That’s one of the reasons I’m worried about renting it out.

The house is a bit of a money pit and I’m concerned about the upfront costs of getting it in a fit state to rent out as well as the ongoing costs of maintaining an older property.

I agree that life is too short and I would really like to sort this out amicably if possible.

Just wondering if anyone else has any suggestions that I haven’t considered?

 

Why not take a week off fly over too NZ and have a face to face talk after all you are still Brothers as i don't think who ever left you both this property would want their hard earned money end up in a never ending legal dispute..imho..

 

It sounds like you have to spend some time getting all the concerns on the table (both yours and your brother's) before deciding what to do. Google "getting to yes". Link

 

It is fairly common. You should be able to go to court to appoint a trustee to sell the property. That would cost a fair bit which would come out of the proceeds, but starting it may prompt him to give in or agree to buy you out.

Legal Tip 70: Two owners of a property - one wants to sell the other doesn't Legal Tip 70: Two owners of a property - one wants to sell the other doesn't

 

Thanks everyone. I’ve already tried face to face discussions during a visit to see my brother in NZ last year, which went no where.

The house has flood damage and some structural issues. Would also need new kitchen, bathroom, heating system and windows throughout before it could be rented out. It’s an old Victorian house, with high probability of on going issues down the track.

Neither of us can afford to do everything that’s needed to prepare it for a rental. At least if it was sold, we could sell it ‘as is’.

I’ve tried putting forward the argument that we could both take our share and invest it elsewhere, but that didn’t go down well.

I don’t see how I can rent out a property jointly with the situation as it is, as brother no longer taking my calls. How would we sort out issues that might crop up if there is no communication between us as joint owners?

I think my next step is legal advice. Perhaps some kind of mediation might help from a neutral third party?

 

Actually worth a lot, even in its current state. It’s located in a very expensive area in the UK and is on a very large block. We’ve been approached by a developer who is interested in purchasing it ‘as is’.

 

My outside the square solution is for you to keep it as is and your brother to rent it from you at 50% rent until he heads back and can get a loan.

The advantages of this is that no money need be spent on it, he secures the right to buy it when he can and you get some income on it until he is living there.

 

That’s a very novel idea and one I hadn’t considered before.

I guess that’s what I was hoping for when I posted this thread. I feel like I have tried to think of a number of potential solutions that would suit both of us and have hit a dead end.

I’ll definitely consider that further.

Anyone else have any out of the box solutions?

 

Perhaps he could buy you out in installments?

 

Something along the line of giving him an ultimatum such as:

1. If he wants to rent it, get him to be responsible for fixing it up and you both receive the rental income on a long lease (i believe the standards leases are longer in the uk) but make it clear that if it becomes a rental you wont be interested in selling in the future (to him or anyone else).

2. You both sell it now and split 50/50.

3. He commits to purchasing it off you within 6 months.

 

How can renting it out even be considered an option if neither of you can afford to bring the property up to the standard necessary for it to be tenanted?

 

When I am asked about beneficiaries accepting property co-owned with others from a will I always ask one question:
Would you choose to buy a property with those people ??

I dont believe I have ever had a response of Yes. And it can be easier and less problematic to have the executor sell the property so that cash is distributed, not a share of property. This would clear any accrued tax issue. If developers may have a eye out it may be worth pursuing this option as it may avoid wasting $$$ on improvements and selling costs.