Inheriting an expensive house

System

Thanks all for the comments and making me realise this is more complicated, I will definitely go to a broker about this.

The IT/Capital gains/STLD would be resolved separately to this via shared savings/parents etc and we're paying it off in instalments.

Thanks guys!

amnblog

Including the CGT on the development?

System

I'm not sure I follow, I was planning to inherit the house as is (thus incurring the taxes) and then find the finance for the 700k once I owned it. I thought CGT was only payable when you transfer or sell property? (sorry if I am naive)

getmore4less

No CGT inheriting,

might be some for the uncle on that transfer if it takes time and value increases but if there are other funds in the estate to distribute you may be able to avoid that and the SDLT issue as well.

No CGT for you if you are living in the place allthough splitting into flats may change that.


you are dealing with serious money here the costs of experts will repay itself more than once.

System

Oh right, of course. I thought maybe because he was transferring his share to us (we are altering the will) then we'd have to pay CGT on it. We're currently dealing with the will so I don't have all the details from the solicitor yet.

Thanks again, you guys are the first people I've contacted, so I will definitely take your advice and see what can be done.

duchy

How can you alter someone else's will ?

I think you seriously need proper legal advice before you do anything that could have severe implications.

makeyourdaddyproud

Send the property to auction and be done with it.

You don't have the means to manage a property divestment of this size. You are out of your league. £1.4M is big boys territory.

Simply by the naivety (how does one get the dots on the i?) of the questions asked, your head is already begging a date with the Exchequer's Sword of Damocles.

amnblog

duchy wrote: »

How can you alter someone else's will ?

I think you seriously need proper legal advice before you do anything that could have severe implications.

It's called a deed of variation and is commonly used - particularly to reduce tax bills.


http://www.hmrc.gov.uk/manuals/tsemmanual/tsem1815.htm

System

Yes, we are able to alter the will since we're within the time limit and my uncle is the executor.

I am not afraid of the risks involved in this, as I said this is not about property development but keeping my home. If I can do it I'll give it a shot. I know I am not versed which is why I am asking for advice.

If all doesn't seem do-able I can always sell, or my uncle can wait for me to fund and do the renovation to then sell for the new value so that everyone gets a little bit more. Perhaps that is the route I will have to go, but this is my family home of 3 generations and if I can do something to keep it that way I would like to do it. I don't think people should automatically back out or be put off attempting to keep their homes just because there are larger numbers involved!

martinsurrey

The problem with large numbers is that any mistakes come out as even larger numbers.

You get an extension pricing wrong in a Luton semi after they find an issue, £10k .

You get the pricing wrong in converting 4 £700k London flats and the difference is going to cost more than the Luton semi!

And if you are half way through the job and can’t finish, you'll be facing selling an un-mortgagable property for a sever knock down price, you could lose it all.