House Selling - Inheritance Question?

goldbyron

My partner’s mother died in December and the estate was left to her and her sister. The house is the main estate with £100k owed on the mortgage. Probate has been applied for and the house is on the market (even at rock bottom price it will clear the mortgage and incur a small amount of IHT).

Obviously the market isn’t great and there are concerns the house won’t sell within one year by which time the mortgage company wants its money. There are two executors, one my partner’s sisters ex partner and the other a solicitor. The sister and ex partner have been pressurising my partner to transfer the property from the estate into their names (my partner and sister) and look at renting it if it doesn’t sell. Simply my partner can’t afford to do this and wants to sell.

She was very worried it would be repossessed and her credit rating affected. Until she rang the solicitor and was informed that worst case scenario is repossession in one year however the house would be in the estates name and not hers so won’t affect her credit rating. Basically there is no legal obligation for her to transfer the property into her name at any point (also would avoid CGT).

Is this correct as sister’s ex partner seems to be saying it must be transferred into their names and rent if not sold. However my partner and myself think this seems very suspicious as contrary to solicitors advice and would serve their ultimate goal of letting the property (ex partner is in property). The ex partner’s business (part property) is in dire straits at the mo and sister is not receiving her ‘income’ from him – so this all seems contrived to dupe my partner into taking a loan with her sister (which she can’t afford).

Does anyone know the correct advice? Thanks

theartfullodger

Would strongly suggest you partner gets advice from another solicitor..


Absolutely don't transfer the ownership !!!

As your partner owns it/has an interest I'd be concerned over the possible self-interest of the executors...

Good luck in a tricky situation!

Artful

goldbyron

Yes thanks - I have said to her that she needs to write a letter to all stating very clearly that she categorically does not wish to transfer the ownership at any point.

She has considered asking for the sisters ex partner to be removed as an executor if he continues to provide incorrect advice contrary to the solicitor.

theartfullodger

You might want to check in who's names the house is registered at
http://www.landregistry.gov.uk

£3 gets you a copy of the title (may not be registered if no change of ownership for some time...)

You might want to get the text of the letter checked by a solicitor 1st before sending - if as you say there will be IHT to pay & there is a mortgage of £100k then I guess that gets the house value over £410k (IHT threshold currently £312k I think). With that much at stake I'd want to make sure my letter couldn't be mis-interpreted..

Cheers! Good luck..

Artful