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Loan to sibling

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  • Loan to sibling

    Hello everyone,

    My sibling and I own what was the family home, recently gifted by a parent.

    The house is on the market, but no offers received. My sibling would like to realise their share of the property.

    I live overseas and would have substantial stamp duty liability if I bought their share.

    I want to lend my sibling an amount equivalent to what we consider a fair value for their share, free of interest, to be paid back upon the sale of the house.

    If I ever moved back to the UK, I would consider buying their share for the borrowed amount to close the matter. In the meantime, we are happy to sell to a third party if one appears.

    With the sums involved, and to protect dependents, we would like to formalise the arrangement.

    What would be the most suitable instrument to use? I have been thinking about a promissory note, payable on demand, with their share of the house as collateral. Is this appropriate to the situation?

    Any advice is gratefully received.
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  • #2
    You really should be taking appropriate professional advice.
    Lawyer (solicitor) - retired from practice, now supervising solicitor in a university law clinic. I do not advise by private message.

    Litigants in Person should download and read the Judiciary's handbook for litigants in person: https://www.judiciary.uk/wp-content/..._in_Person.pdf


    • #3
      Hello atticus,

      Thank you for the reply, and well-noted. I am sure this matter will eventually involve professional advice.

      I firmly believe that people make well-informed decisions after considering a range of opinions. However, with no pre-existing dealings with a UK-based solicitor, I am somewhat at the mercy of the name I pick out of the proverbial phone book giving me the most appropriate advice.

      By posting here, I had hoped to garner some opinions on the pros and cons of the various options. That said, I apologise if I've misunderstood the remit of these forums, and I am happy to remove the thread if it is inappropriate or rephrase it more appropriately.


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