Buying shared house from brother - SDLT liability and conveyancing in Essex/London

boombang106

Have searched but been unable to find anything similar - there are two questions I am trying to get an answer about.

The house is worth £275k, is owned by my brother and I. My wife and I are buying him out. The exchange is entirely amicable, my brother has never lived here and entirely happy with what we are paying him.

Want to check that the we will not have to pay any SDLT, on basis the amount we are paying him for the share plus half of the mortgage is £125k? Is it as simple as that?

Second question is are there any recommend conveyancing solicitors in the Essex / London are? We have a few prices, but hoping that one will see this is a relatively straight forward exchange and reflect that in prices - perhaps too much to ask!

We live near Brentwood and I work near Holborn, so nearby to either would be preferred. I am waiting for some more local prices however.

boombang106

Mortgage is also being finalised for the buy out too.

My wife has wondered if we acutally need to use a conveyancing solicitor and what service we really required from them. I have never sold a house and to be honest did not get overly involved in buying this one (done through a family friend as a favour).

99sc1610

boombang106 wrote: »

Mortgage is also being finalised for the buy out too.

My wife has wondered if we acutally need to use a conveyancing solicitor and what service we really required from them. I have never sold a house and to be honest did not get overly involved in buying this one (done through a family friend as a favour).

You should use a solicitor, shouldn't cost more than about £600 plus VAT

boombang106

Thanks for the info.

The first quote we obtained was from someone my wife used when selling her flat last year. They were superb throughout the whole 5 month process - dragged out when the 'cash' buyer turned out to be in the process of selling their house to fund the buy.

Quote is estimated at £395-595 plus:

Land Registry Fee £90 (estimated)
Personal Search Indemnity Insurance Policy £20 (estimated)
Official Copy Entries and Title Plan £8
Fee for arrangign bank telegraphic transfer of funds £36
Land Registry/Bankruptcy Search Fees £16

All plus VAT.
£100 required on account.

Seem reasonable?

There is also a section in the covering letter saying "I look forward to learning if your brother will be instructing a firm of solicitors to act on his behalf in this matter or if you require me to draft the Transfer Deed."

Does this sound as if his fees are covered, seeing as there is no itemisation of the Transfer Deed?

Fire_Fox

http://www.hmrc.gov.uk/sdlt/intro/rates-thresholds.htm
You need a conveyancer, you will have a nightmare in the future if you mess it up trying to DIY and if you have a lender they will want the legals done properly. You really need to be putting some of these questions to your conveyancer, especially the ones about his quote/ estimate (which is it?).

boombang106

Fire_Fox wrote: »

You need a conveyancer, you will have a nightmare in the future if you mess it up trying to DIY and if you have a lender they will want the legals done properly. You really need to be putting some of these questions to your conveyancer, especially the ones about his quote/ estimate (which is it?).

I am aware of the thresholds, just unsure how they apply it to split ownerships, although cannot see it being done on anything bar the amount of money that changes hands (cash + half joint mortgage). If it was on half of the property value for example, it would be in the 1% bracket.

The wording on the letter is "I confirm that my firm's costs in this matter will be between £395-595 plus VAT plus the usual disbursements..." (those are listed above). I just need to clear up with them if that includes costs for my brother really.

Either way on the basis of previous service we are likely to use them, just want to check if prices are fair given the type of transaction taking place.