DIY transfer of equity after mum's death. Land registry advice required 13 August 2013 at 12:36PM in Over 50s MoneySaving 5 replies 4.1K views

martin_sv

Hi to all but especially to the resident Land Registry offical member:). I am the sole executor of my mum's will and everything is split between myself and my sister ( both over 18!!). My sister has agreed to buy out my half share in mum's freehold and registered house. My question relates to the land reg transfer of equity procedures. As executor I have a duty to split the estate including the house and would be able to make the necessary transfer via the forms provided. I understand there would be noSDLT ( stamp duty) to pay due to my mum's death and the fact that no "consderation" would be involved. However in the light of the desires of my sister am I OK ( am I not breaking my obligations as executor) to make a transfer directly to her? I imagine in these circumstances as the sum being paid for the half share is over £125K my sister would be liable for stamp duty on her purchase price (£140K). So is there any problem with making one change rather than two changes to the land registry records? And which form(s) would I need if I go down this route. I wouldn't have thought my sister would be classed as a "third party" as she already inherits a half share of the property. (which she currently lives in and always has).

thanks for any help

Land_Registry

martin_sv - if the property is in England & Wales and registered in your late mother's sole name then the Executor (you) can Transfer the property to your sister using forms AP1 and TR1. The probate provides you with the legal authority to deal with the property and there is no need to register yourself as Executor and/or to put the property into your joint names. See our online FAQ re changing the ownership in this way.

Although the will splits everything between the two of you if you are both in agreement as to what happens next i.e. she buys your share then dealing with the legal ownership should not be an issue.

As the legal title is not going to both beneficiaries and there is a financial consideration being paid a Transfer would be required and not an Assent in form AS1.

The stamp duty requirements should be addressed to HMRC but if the amount being paid is above the threshold then SDLT seems likely.

I should stress that we cannot provide legal advice so if you are uncertain of how to proceed then I would recommend that you do obtain such advice.

martin_sv

Many thanks for this information. From reading the L. reg website it still seems that I/my sister is able to submit the relevant forms on our own behalf--ie a solicitor is not necessary if no mortgage is involved. AM I correct in thinking that the person who needs to sign the transfer documents is myself ie the executor?Can you confirm this? Are there steps we need to take to confirm identity and is that for both if us or just the person buying the outstanding share of the property?
When addressing the level of land registry fee involved should the figure be based on the properties total value or ( as I would hope) be based on the "consideration" for the 50% share.
Finally do you happen to know what form I need to request from HMRC?
Many thanks for your valued assistance!:)

Martin

Land_Registry

Yes - you are the Transferor in your capacity as the Executor

The ID requirements will apply to your sister - as you are the Excecutor as named in the official copy probate we should not require ID evidence for you - see Public Guide 20 section 2 and Exceptions

The Transfer will be from you as Executor to your sister and in consideration of the amount being paid. The registration fee will be based on that consideration.

An SDLT5 will be required in most cases

martin_sv

Thanks for all your clarity on this. Sometimes the info on the site is saying the correct things but makes an assumption of some prior knowledge. It's in this way I think that the amateur can see some instructions as potentially ambiguous.
I feel equipped now to move forward. I had dloaded AS1 so will now get the forms you sugested and if I get stuck (hope not!) I come back here, many thanks again
Martin

Land_Registry

It is important that posters are open, honest and frank with the information they provide - most of those who post regularly are able to offer sound advice provided they have a full picture of the OP's situation.

When you are dealing with property the legal aspects can quite naturally be uncertain simply because a) often no one situation is the same, b) dealing with property is not an everyday occurence and c) dealing with the registration aspects is just one part of what needs to be considered

The key here is that you and your sister are complying with the terms of the will but one of you is buying the other's share. That makes it a Transfer and not an Assent, which brings other factors into play, such as SDLT as you already appreciate.