The majority of people who inherit a home in the UK, end up inheriting it with siblings.
Right away, you have two main options: sell the house and split the money, or one sibling buys out the others’ shares.
Many families choose a buyout so the house stays in the family. But money matters can get tricky as nearly half of all inheritance disputes happen between siblings, often due to disagreements over the family home.
If you’ve inherited a house with your sibling and want to keep it, you can buy out your sibling’s share.
This means you pay your brother or sister the value of their portion of the property, and in exchange you become the sole owner.
In this guide, we’ll explain how to buy out a sibling’s share of an inherited house in the UK.
We’ll also cover how to agree on a fair price, explore ways to fund the buyout (whether you have savings or need a mortgage), and go through the legal process of transferring ownership.
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Options When You Inherit a House with Siblings
Inheriting a property with one or more siblings can be both a blessing and a dilemma. Everyone has a stake, so you all need to decide together what to do with the house.
Generally, there are two main paths you and your siblings can take:
Sell the house and split the proceeds
This is the straightforward option. You put the inherited house on the market, sell it, and divide the money among the siblings according to each person’s share (often equal shares).
This approach gives everyone cash and avoids the complexity of one person keeping the property. However, it also means letting go of the family home, which can be emotional.
In this scenario, one sibling wants to keep the house, and the others prefer to receive money. The sibling who wants the home will buy out the other’s share by paying them its fair value.
For example, if two siblings inherit a house 50/50, one sibling can pay the other 50% of the home’s market value and take full ownership.
This way, the house stays in the family, and the other sibling gets their inheritance in cash. All siblings must agree on this plan for it to work.
Sometimes families also consider options like one sibling living in the house (perhaps paying rent to the others) or renting the property out and sharing the income.
But if the goal is for one person to own the home outright, a buyout is the way to go.
Buying Out Sibling from Inherited House: Complete Guide
Buying out a sibling’s share involves a few clear steps. It’s essentially like a normal property purchase, except you’re only purchasing a portion of the house that you don’t already own.
Here’s what to do:
1. Make sure the estate Is settled (probate)
Probate is the legal step that gives the executor authority to distribute the estate.This typically takes a few weeks (often 4-8 weeks in simple cases) to get a Grant of Probate.
If your parent or relative left a will naming you and your sibling as beneficiaries, the executor needs to go through the probate process to officially transfer the house into your names.
You usually cannot sell or change ownership of the house until probate is completed, so this step must be done first.
Once the house is legally in the siblings’ names (as co-owners), you can proceed with the buyout.
Figure out how the property is owned and what each sibling’s share is worth. Check if you inherited the house as joint tenants or tenants in common.
If the will or inheritance doesn’t specify, siblings often end up as joint owners in equal shares by default.
Joint tenants means you all own the property together with equal rights; tenants in common means each person has a defined percentage share (which could be equal or unequal).
This matters for calculating the buyout price and the process of transfer. If you’re not sure, a solicitor can check the Land Registry title to confirm the ownership type.
Agree on the house’s market value. To keep things fair, it’s best for siblings to use the current market value of the house as the basis for the buyout price.
You can get an independent valuation from a chartered surveyor or at least ask a few estate agents for an appraisal. This prevents arguments about the price.
Once you know the approximate market value, calculate what your sibling’s share is worth.
For example, if the house is valued at £300,000 and you each own 50%, your sibling’s share is £150,000. That £150,000 would be the amount you need to pay them to buy them out (assuming no other adjustments).
Tip: It’s wise to put any agreement in writing. Even if you’re on good terms, consider using a mediator or solicitor to help negotiate the price if there’s any disagreement. A neutral third party can keep things civil and ensure everyone feels the outcome is fair.
3. Arrange the money (cash or mortgage)
Once a price is agreed, you’ll need to secure the funds to pay your sibling. There are a few ways to finance a buyout:
Personal savings or inheritance money: If you have enough savings or other funds, you can simply pay your sibling their share directly. This is straightforward meaning no loans or interest to worry about.
Mortgage or loan: Many people get a mortgage to fund a sibling buyout. In essence, you’re taking on a new mortgage (or increasing an existing one) on the inherited house to raise the money needed to pay your brother or sister.
The mortgage process is similar to any home purchase mortgage where the lender will look at your income, credit, and the property value.
The good news is you already own a portion of the house, which effectively serves as a deposit.
For example, if you inherited 50% of the house, that equity can count as your deposit for the mortgage.
Lenders often require at least 5-10% deposit in normal cases, and here you likely have much more, making it easier to get a good rate.
You’ll still need to meet the lender’s affordability criteria for the loan amount.
It’s recommended to speak to specialist mortgage advisor about inheritance buyouts, as they can find suitable lenders and navigate any complexities.
Other financing options: In some cases, if the property already had a mortgage, you might look into a remortgage or further advance with the same lender.
Or a family loan, though borrowing from relatives can be sensitive, it’s an option if a parent or another family member is willing to help you fund the buyout.
4. Complete the legal transfer of ownership
Now comes the legal part: transferring the property title so that you become the sole owner and your sibling is removed from the deed.
In the UK, this involves drafting a Transfer of Equity (often using a Land Registry form called TR1) which both you and your sibling will sign. It’s highly recommended to hire a solicitor or licensed conveyancer to handle this process.
They will ensure all documents are prepared correctly and advise on any legal details.
The solicitor will also handle tasks like obtaining an up-to-date copy of the title register, and they will use the Grant of Probate as needed to show the property was inherited.
Once everything is signed, the solicitor will file the transfer with HM Land Registry. The Land Registry will update the title to reflect that you are now the sole proprietor of the house.
When the transfer is completed, your sibling will get their money (usually the solicitor handles the payment on completion day) and relinquish any claim to the property.
5. Settle taxes and fees
Even though you’re family, buying out a sibling is treated like a property transaction in the eyes of the law, which means there may be taxes and fees to pay. The main tax to watch is Stamp Duty Land Tax (SDLT).
In England and Northern Ireland, stamp duty normally applies when you buy property or a share of property above a certain value.
When you pay your sibling for their share, you are technically “purchasing” that share, so SDLT can be triggered if the amount is over the threshold.
You can use our up-to-date stamp duty calculator to get an estimate. Or connect with mortgage advisors we work with for more information.
Aside from SDLT, you should budget for other costs: legal fees, Land Registry fees, valuation fees, and any mortgage arrangement fees if you took a loan.
Frequently Asked Questions
Do I need a solicitor to handle a sibling buyout?
Yes, it’s highly advisable to use a solicitor or licensed conveyancer. A solicitor will make sure the property transfer is done correctly and that your sibling’s name is properly removed from the title.
Can I force my sibling to sell an inherited house if we disagree?
No, you cannot unilaterally force a sale without legal action. If one sibling refuses to sell or buy out, you may apply to the court for an “order for sale” as a last resort.
How to determine a fair value for the house when buying out a sibling?
To get a fair price, start with the market value of the property as if you were selling it on the open market. It’s best to get a professional valuation.
Does inheriting a property affect my status as a first-time buyer?
Yes. If you inherit a property (or a share of one), you are no longer considered a first-time buyer in the UK because you now own an interest in a residential property.
Your home may be repossessed if you do not keep up repayments on your mortgage.
All content is written by qualified mortgage advisors to provide current, reliable and accurate mortgage information. The information on this website is not specific for each individual reader and therefore does not constitute financial advice.
Content creator
CeMAP (Certificate in Mortgage Advice and Practice) qualified mortgage adviser.
