Selling an Inherited House within 6 months

Freebird40s

Hi,

I'm the sole beneficiary of my late mum's will and I have everything in my name now, including the house. The Land Registry date was in December.

I want to move and I'm talking to Estate Agents to put the property on the market now. I do know about the CML 6 month 'rule', will my property ownership be treated the same way as if I'd bought the property in December.

I have actually lived in the property for 8 years while looking after my late parents and the probate value used by Land Registry to transfer it to me is about 10K more than it will actually sell for.

I have seen lots of different opinions about the 6 month 'rule' in general but not in connection to an inherited property.

Thanks

davidmcn

The CML handbook requires solicitors to:

"report to us immediately if the owner or registered proprietor has been registered for less than six months."

so you'd be caught by that. How sensible a view lenders take of it, I'm not sure.

It would actually be easier if you hadn't transferred it into your own name and were selling as executor.

G_M

Why did you transfer it into your name if you planned to sell?

a) extra cost and

b) now caught by the 6 month rule.....

Sorry - not much help. Maybe you'll find a cash buyer.

ognum

You didn't need to transfer the property out of your mothers name if you are her beneficiary. It could have been sold directly by the executors or by you while in her name.

Anyway, too late for that, you may need to wait or explain the situation.

ACG

There are lenders who will lend on it, but the options are limited.

Your buyer will likely need a broker.
Chances are if the broker checks with the lender/account manager the rules can be bent under the circumstances - not one for every lender by any means but I would be surprised if it cant be done.

Freebird40s

Thanks for the replies.

Why have I moved it to my name, my solicitor did not think it was a real problem - but then they are fairly junior and only deal with wills/probate and not conveyancing.

My parents bought the house in 1959 and when my father died 4 years ago because the title was in joint names the solicitor did nothing with Land Registry, so before the change recently it would not have been on the 'system' (what I was told)

I can wait to sell if I have to, just interested to see your thoughts on the difficulties.

Richard_Webster

CML Handbook 5.1.1.& 5.2 says

5.1 Length of Ownership
5.1.1Please report to us immediately if the owner or registered proprietor has been registered for less than six months.

5.2 Seller Not The Owner or Registered Proprietor(Back to contents)
5.2.1Please report to us immediately if the person selling to the borrower is not the owner or registered proprietor unless the seller is:

a personal representative of the registered proprietor; or
an institutional mortgagee exercising its power of sale; or
a receiver, trustee-in-bankruptcy or liquidator; or
a developer or builder selling a property acquired under a part-exchange scheme; or
a Registered Housing Provider (Housing Association) exercising a power of sale.

So if you hadn't transferred it into your own name the issue wouldn't arise at all.

Logically if there is an exception for a personal representative selling then the fact that you have registered it in your own name shouldn't make any difference. Trouble is that the people in lender mortgage processing departments are not lawyers and don't always understand their own rules and the purpose of them. So, however much a solicitor may point out that there should be an exception in your case they may refuse to see it.

Mojisola

Freebird40s wrote: »

Why have I moved it to my name, my solicitor did not think it was a real problem - but then they are fairly junior and only deal with wills/probate and not conveyancing.

Poor advice - I would make sure the junior gets told not to give advice unless he/she knows something about the issue.

cazcardiff

I think you will be fine selling the property you have inherited sometimes it is a good thing to have the property put in your own name as solicitors/trustees are robbing so and so's and try and charge for everything - you will have evidence of inherited property and the lender of your buyer should accept your evidence I'm sure I read something on a lender's site "
Where you have obtained evidence that the customer inherited the property following the death of the previous owner and provided you confirm this to us in writing"


hope that helps and good luck with your sale - which I could sell my inherited property x

pyueck

As people have said you should have sold it from the estate. I don't think this will be an issue though.