Legal advice: How can I cash in my share of an inherited house?

My siblings and I inherited a house fifty years ago in equal shares from an uncle, now I want to cash in my share.

My siblings and I inherited a house 50 years ago in equal shares from an uncle, now I want to cash in my share.

Dear Karen, 

My siblings and I inherited a house 50 years ago in equal shares from an uncle. I have five siblings, three of whom have since passed away and two of whom are still alive spread in different parts of the world. 

I am not sure if my two siblings who passed away left wills or not. They each had a spouse and children. The third sibling who passed away was unmarried with no children. He willed his share of the property to a friend and was estranged from the family.

My surviving siblings and I are thinking of selling the property in the future, but I understand that we cannot do so until the title is brought up to date. What does that mean?

Dear Reader, 

The more people who own property together, the more room there is for disagreement and the more work there is in making sure the title is brought up to date such that any deaths of owners on title are noted and dealt with and the Land Registry Folio amended.

The estates of your siblings that have passed away will need to be dealt with, ie, a Grant of Administration Intestate or a Grant of Probate is required, whichever is appropriate.  In the case of a tenancy in common, the co-owner that dies can leave their share to another person under their will, or their next of kin on intestacy. 

In each case of a sibling passing away, if your sibling left a will it would pass to whomever they nominated to give the property to. If they did not leave a will, it would pass according to the rules of intestacy. 

For example, if your sibling was married with children, it would pass to his or her spouse in a two-third share and pass to his or her child or children in a one-third share. Once the Grant has issued, the appropriate Deed of Ascent needs to be prepared to vest the property in the relevant beneficiaries’ names. 

It is always best to deal with an estate of a deceased person within a reasonable timeframe after they have died as often, if it is left for many years, further complications may arise.

You own the property with whoever has inherited the shares in it. Obviously, it is not ideal that you now own a property with someone you may not know, and it is not practical to subdivide a house. If you wish to liquidate your share, you can approach the beneficiaries in the various estates to see if they are willing to buy it.

If they are not willing, the only other option available would be to place the property on the market and divide the proceeds of sale in equal shares. If the beneficiaries are not agreeable, you can make an application to partition the property through the courts without the need for consent from the co-owners. 

This allows at least one of the individual owners to petition the court to divide the property and force the sale. 

Distribution of the net proceeds is then made to those who hold shares. This should be avoided as much as possible as this process is somewhat time-consuming and expensive, but it is also quite difficult when there are many people who own shares in a property. 

Anyone who does not want this matter to proceed may file an objection, but this would be overturned as the other owners have a right to force the sale. Partition proceedings should be viewed as a last resort.

Selling a property with multiple owners can be a headache. It is not often that everyone will agree on the major decisions, such as dividing the cost of rectifying their portion of the title or the maintenance of the property. Also, some may not have the same urgency as others with regard to rectifying the title and selling the property.

A mediator is a less costly option rather than litigation. It is often wise to appoint someone neutral, like an estate agent or auctioneer, to deal with the property.

If the title can be brought up-to-date, it is also wise to put a Co-ownership Agreement in place dictating what would happen if one of you wishes to sell the property, or on each other’s deaths, etc.