Can I rent late fathers flat with probate grated?

slim25

My father died August 2008 and left a flat for me and my brother.
I applied and was granted probate and tried to sell it with no luck.
I am now going to start renting it out and was wondering if as executor that I would need to transfer the title deeds into mine and my brothers name or could I still rent it under the estate of my father and if I can do the latter how long can I do this for?

From what I have read any income from this rental which is split between us is liable for tax that we will pay at 20% (as we are not in the 40% bracket) is this also correct?

Thankyou for your replies :cheesy:

Fire_Fox

A flat can't belong to someone who doesn't exist, you need to transfer the title to your and your brother's names. Does the flat have a mortgage? If it's a leasehold flat do you have the permission of the freeholder to let the flat? Have you had any necessary safety checks (gas certificate etc.) carried out? Rental income minus costs (mortgage interest, running repairs, agency fees etc.) will be liable for income tax at the usual rate.

slim25

Thank you for your reply.
The flat has no mortgage and I have the written permission of the freeholder to rent.
It is sheltered housing so does not have gas but it does (obviously) have electric which I am led to believe you do not need a certificate for but you can have electrical appliances tested if you want as you have a responsability of care for the tenent but it is optional, Is that true? Is there any other certificates I need? I have had the epc done when I had the hip prepared for when I tried to sell it.

So I will need to change the title over. Can I legaly rent it out as the executor until I have changed over the title or Do I have to change it first?

I presume I just need to write to the land registry telling them the circumstances or isn't it as simple as that?

Fire_Fox

No idea how to change the title but try here
http://www1.landregistry.gov.uk/assets/library/documents/public_guide_009.pdf

I am not in any way an expert but I wouldn't have thought you could let a property that you don't technically own, but am willing to be told otherwise!

clutton_2

the BTL insurance is the vital thing - i cannot see any reason why you cannot rent it straight away.

John_Pierpoint

Legally the executor is responsible for it. It could be registered in the name of the executor as legal owner but trustee status.
However as you intend to sell it, the best bet is probably to register it in the names of brother & sister. I'm not sure about a flat but I registered my late mother's house into the names of me and me sister for a modest sum at the Land Registry. Just had to fill in a form. Presumably no Inheritance Tax (IHT) is payable?

clutton_2

i think you may need a TR1 form from Land registry - you can do it yourself.

slim25

Sorry for the late reply
There is no IHT to pay and I got the LLI, I also phoned the land registry and they told me I needed to fill out AP1 and AS1 , AP1 seems a little confusing!!! but I will give it a go at the weekend.
I phoned a property solicitor and they told me I could rent it out as I am the executor and that I will need to transfer the names over to me and my brother.
Do the Land registry help people fill out the forms?
@ clutton I think TR1 is for tranfering if the person is still alive?

John_Pierpoint

The Land Registry is a bit of a lottery. When sister and I inherited mum's house, we called in on the Tunbridge Wells branch and were told we needed a solicitor; however the actual house was the responsibility of a branch in Yorkshire and they were as nice as pie, sent us the forms and helped us fill them in over the 'phone.
There are two forces at work:
1. The government want all the land in the country registered ASAP (so it can be taxed?)
and the Land Registry will do cheap rate deals for voluntary registrations (Assents -
that is what the AS stands for - are now compulsory registrations even though money is
not changing hands).
2. The Land Registry has been paying out millions of pounds a year in fraud compensation
Favourite trick is to fake up a sale of a mortgage free property at address A to new
owner at address B and then take out a massive mortgage on it and "do a runner".

slim25

well you were right John,
The land registry were as nice as pie and went through the forms with me and I've now sent them off with the probate grant and the cheque for their fees , so hopefully all is well

the AP1 form was mainly about confirming the identity of the people involved but as it was for assent I was told that it wasn't necessary but I still had to fill out the rest. The land registry said that the AP1 form was mainly to stop money laundering, they didn't mention Mortgage fraud to me lol .

Once the assent is confirmed and it's then in my brothers and my name would that render the agreement I signed with the agent binding for the next year or would we legally have to sign a new contract with them in both our names?

John_Pierpoint

Presumably you & your brother are going to be "tenants in common" as against "joint tenants", when you own the flat? Not that it really matters as long of one of you does not die before you sell it.
What is this agent doing for you?
Is this the agent who is trying to sell the place or one that is finding a tenant and collecting the rent?
As it is a "sheltered" flat, does this mean that there are restrictions on the ages and status of potential occupants/tenants/purchasers?