Siblings buying out other siblings

L

loftus14

Guest
Hope someone can help here! My mother died a year ago and finally after probate etc was sorted her home was transferred to 6 of us. House was then decorated and put on the market in January. Some interest but way below asking price! Now, 3 family members want out and the others would like to retain the property and buy them out! Is this possible and how do we go about it?
 
Yes its possible.

Say property is worth 300K. Each siblings now owns 1/6th. 50K.
Cost to buy out is 3 X 50K = 150K. There will be stamp duty on that but not much.
Or parties can agree on a lesser amount - if everyone agrees. There will still be stamp duty on the actual value and there may now be gift tax implications.

Plus there will be solicitors fees.

It is a good way of resolving things providing the purchasing three can raise the cash and the selling three are willing to release their interest. If there is any bad blood, though, it can fuel resentments which is why a sale to a stranger can be more sensible - when possible.

mf
 
Thanks for that! Fortunately No bad blood! Very simply 3 family want to take the money now and pay off part of their mortgages! The other 3 of us do not have any mortgages!

We have agreed a figure which matches the highest offer received to date less fees etc..

As 2 live abroad and never owned property in Ireland, will they be liable for stamp duty! Do , we, the purchasers have to lodge the money with solicitor or can it just be given to the other 3 directly!
 
Have you organised a mortgage? That can be quite tortuous.

"As 2 live abroad and never owned property in Ireland, will they be liable for stamp duty! "

If they are the purchasers, they can hardly say they intend to live in it! And if they are the vendors, it does not apply.

"Do , we, the purchasers have to lodge the money with solicitor or can it just be given to the other 3 directly!"

Well, I would not recommend doing this without the solicitor! You need to make sure that there is an actual formal completion when money is paid over in exchange for signed paperwork. Otherwise, its the kind of things where years later, everyones wondering what dd actually happen.

mf
 
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