Probate problem

[SherbetLemon]

I hope this is in the appropriate place.

Hello, some progress has been made. My brother has agreed to sell the property my mother left us.
On the probate documents the property is worth 425,000. He was going to buy me out so a year later got a buy to let mortgage evaluation which was 365,000.
He says he's done work on the property and added value to it.

Please could you tell me which figure do we go by to work out how much the property has gone up in value?

The open market figure of 425,000 on the probate paperwork or his mortgage 365,000 figure?

Thank you

[atticus]

Surely the market will decide, i. e. the price a buyer agrees to pay.

[SherbetLemon]

I think you've misunderstood my question.

I'm asking which figure do we use next to the buyers price to calculate how much my brother has increased the price by? Bet

[Pezza54]

Hi
it's your question that is confusing.
Does your brother still intend to sell it to you or put it on the market?
I think the mortgage valuation should be ignored as mortgage lenders tend to undervalue, especially now, as prices are falling.
On the other hand, the probate figure may have been overvalued. Did an estate agent value the property for probate or did the executor make a judgement?
Are you saying your brother wants more than 50% of the sale value because he worked on the property?
How much work did your brother do?
Your brother appears to have worked on the property when house prices are falling, meaning that he may not have increased the property value at all.
My advice is to obtain a local estate agents valuation and at the same time get their advice on property's valuation a year ago and how your brother's work has affected the valuation since probate.

[Pezza54]

Sorry, ignore my second sentence. Does your brother intend to keep the house or sell it?
If he intends to keep it then you still need estate agent's valuations as above.
Only an estate agent can advise whether the work your brother did added value.

[atticus]

Surely the Probate value has already been used for tax purpose, in which case surely you are looking at any uplift from that.

[Pezza54]

OP's case involving a dispute with the brother about the house has been going on since OP's first thread a few years ago. So the valuation for probate will be out of date.
House prices have risen and fallen since 2020. So a current market valuation is more accurate. If the property proves difficult to sell the value may fall again...

[Pezza54]

If OP's brother says he has carried out improvements and wants to deduct this cost from OP's 50% share then OP should argue that the brother has benefited living rent free and OP has lost investment interest on his or her share of the money since 2021.

[SherbetLemon]

Thank you for the answers.

We are selling the property together, managed by a mediator as we can't communicate ourselves.

We are getting an estate agent to reevaluated the property and they will be working out how much the work (shoddy paint job, one wall knocked down between the kitchen and dining room, and new bathroom suite) will have affected the price.

I like the counter argument of "the brother has benefited living rent free and OP has lost investment interest on his or her share of the money since 2021." I asked him for rent in 2020 when it became apparent he was going to be a problem. He laughed and told me that's not going to happen.

Now I'm ready with a few counter arguments and questions for the next mediation session. Thank you

[Pezza54]

Your brother should have been paying you 50% of the market rental value from the date probate granted, the time when the house could have been let.
You should work that out, probably comes to Łks

[SherbetLemon]

The house is in no state to be let. Would that make a difference?

[SherbetLemon]

I should have added, that even though he was living there he wouldn't pay me rent because he said it wasn't let worthy to the general public

[SherbetLemon]

Also, why from the date probate was granted. Asking so I understand what I'm talking about when I raise this point. Thank you

[PallasAthena]

I should have added, that even though he was living there he wouldn't pay me rent because he said it wasn't let worthy to the general public

In what way wasn't it let worthy? Does he mean it would have been illegal to let it? Why?

In the current property market every property is letable unless there's a reason why it would have actually been illegal to let it . The open market rental would reflect the condition.

[Pezza54]

From the date probate is granted executors can deal with the assets as per the will. The executors could have sold the property or arranged a let.