Loan to sibling

[ellieTD]

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.

[atticus]

You really should be taking appropriate professional advice.

[ellieTD]

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.