Title deed inquiry

Tony_Geo

Many years ago I helped my uncle and aunt clear an outstanding mortgage debt on their home and do some significant updating when they retired. By helped I mean that I gave them the money to do it. To protect my interests they arranged for a Deed to be drawn up to make the property tenants in common and giving me a third which was roughly the value of my contribution. At this time the property was unregistered.

When my uncle died six years ago I discovered that he had left me his share of the house with my aunt's full agreement. My aunt also discussed transferring her remaining share to me but her solicitor and I did not think this was a good idea. But she did agree with the solicitor that the property should be registered to ensure that my interests were protected rather than just relying on a document held in the solicitor's vault.

Recently, I discovered from the land registry entry that the property was registered in my sole name with no mention of her owning a share of it or restrictions on selling. I did sign something to register the property six years ago, but I had assumed that it would mention her interest in the property. But it appears that only record of my aunts remaining interest is in the Deed establishing the tenants in common arrangement.

I looked at the land registry entry because my aunt's health was failing and I wondered if it may be necessary to sell the house to fund some form of care. She has now died without this being an issue.

So my first question is that as her executor and sole beneficiary, do I need to apply for Probate? Her estate including the share of the house is nowhere near the IHT threshold, her savings are modest and within the limits of the banks concerned that do not require Probate. Similarly her life insurance is very modest and the insurers will pay without Probate. Since the Land Registry Record does not mention anyone having an interest or name my aunt is there any need to do anything with the entry.

My second question is, if I do not need to apply for probate and the land register only specifies me as the owner, am I likely to encounter any issues if and when I chose to sell the house from other documents her solicitor (who has since retired) sent to the land registry at the time?

Land_Registry

If the property is in England & Wales and registered in your sole name then the legal title is yours to deal with.

You refer to her having no registered interest so I am also assuming that there is no form A restriction registered to reflect the tenants in common aspect you refer to.

Land Registry will hold the bare minimum of documents relevant to the registration 6 years ago and these are very unlikely to relate to any agreement re the shares you each held etc.

If the only people involved were you and your aunt and uncle and neither fo them left their share to anyone else then it is difficult to see where any issues would arise re the property at least.

The probate issues you refer to are not within our remit so I cannot advise on those.

Others will be better placed to post advice on the wider issues no doubt.

Tony_Geo

Land_Registry_representative wrote: »

If the property is in England & Wales and registered in your sole name then the legal title is yours to deal with. .

Yes it is in E&W. On the copy downloaded from the Land Registry site it has only my name on the Cover as the registered owner and later as the Proprietor.

You refer to her having no registered interest so I am also assuming that there
is no form A restriction registered to reflect the tenants in common aspect you
refer to.

I do not know what you mean by Form A restriction but the entries on the Land Register under (A) just list the original transfer of land to the builder, and the rights conveyed to my aunt's father when he purchased the property from the original owner.

Section (B) just lists me as the proprietor.

Section (C) refers to the conveyance from the original land owner to the first owner and then the conveyance to my aunt's father in the 1950s.

Since it was built, the only records were the Original Title Deed, the conveyances to the first owner and then to my aunt's father. After this there are death certificates, wills and Deeds setting up the Tenants in Common arrangement between the family members. These papers probably still exist with my aunt's solicitor.

If the only people involved were you and your aunt and uncle and neither fo them
left their share to anyone else then it is difficult to see where any issues
would arise re the property at least.

Yes the only people involved were the three of us.

I have found a letter from my aunt's solicitor to my aunt stating that he had noticed that there was no reference to her having a third share in the property on the Land Registry record and inquiring whether she wanted him to ensure it happened. But I could not find a reply and I suspect she would have taken the view "why bother".

But unless anything I have said above changes your view, it appears that there is no need to transfer her share to me since its already happened.

G_M

I too cannot answer the Probate question, but if there is no mention in the Title (or Charges Register? section C?) of anyone else's interests (ie your aunt) then you already own the property 'free and clear'.

One possible issue:

I assume you have not been living there? Therefore if/when you sell, there may be a Capital Gains Tax liability.

At that point the question of whether you have owned the entire property, or just 2/3rds of it, may impact on how much CGT you have to pay.......

Land_Registry

Apologies re the form A restriction - the wording would be
No disposition by a sole proprietor of the registered estate (except a trust corporation) under which capital money arises is to be registered unless authorised by an order of the court.

But as the B Register simply refers to your name it is clear no form A restriction is present.

As G_M has kindly posted it sounds as if the title is clear of any other interests so you should be able to deal (sell, mortgage, lease etc) with the property on your own.

The probate and CGT issues as mentioned will require advice from others or a legal adviser

Tony_Geo

G_M wrote: »

I too cannot answer the Probate question, but if there is no mention in the Title (or Charges Register? section C?) of anyone else's interests (ie your aunt) then you already own the property 'free and clear'.

One possible issue:

I assume you have not been living there? Therefore if/when you sell, there may be a Capital Gains Tax liability.

At that point the question of whether you have owned the entire property, or just 2/3rds of it, may impact on how much CGT you have to pay.......

G_M thanks for this. I was expecting to pay CGT if I sell it. My aunt's house has never been an asset I have ever counted as mine (although clearly it was). They wanted to make sure I got back the money I provided 20 years ago, through acquiring a share in the property. Assuming that my aunt's solicitor still has the paper trail I should be able to provide some evidence of the dates. If they do not, well I will cross that bridge .....

Tony_Geo

Land_Registry_representative wrote: »

Apologies re the form A restriction - the wording would be
No disposition by a sole proprietor of the registered estate (except a trust corporation) under which capital money arises is to be registered unless authorised by an order of the court.

But as the B Register simply refers to your name it is clear no form A restriction is present.

As G_M has kindly posted it sounds as if the title is clear of any other interests so you should be able to deal (sell, mortgage, lease etc) with the property on your own.

The probate and CGT issues as mentioned will require advice from others or a legal adviser

Thanks for this.