Buying My First Property - Slightly Complicated

WispaGold1

I am about to purchase my first property, a one bedroom flat in West London, with a lot of financial help from my parents, and the situation is a little complicated so I was hoping to get some advice on how best to handle it.


The property is owned by my sister, who owns it outright without any mortgage. It is valued at circa £250,000 which is what I have agreed to pay for it. £175,000 will come from my mum, who has this money in a joint savings account with me. The remaining £75,000 will come from my personal current account.


My sister has bought another property, and therefore needs to sell this one within 18 months to not be liable for capital gains so we have until approximately March 2016 to complete the transfer to me, but ideally needs to be done much sooner, as early as next month, so my sister can pay off her mortgage fully in her new property.


I am already living in the flat I am buying but my sister is continues to pay all the bills, and I give her a sum of money to each month to cover this. Its an informal agreement. I'm not paying any rent, just covering utilities and council tax payments.


I assume we will need a solicitor or conveyancer to complete the legal transaction, and they will probably need to do area searches and other legal duties. Is this correct?


Also with regards to the money transfer, would it be ok if my mum transfers the 150 directly to my sister and I transfer the 75 directly to my sister, or does this need to be legally documented somewhere, or go through a solicitor?


We are all on good terms, a close family, but need to handle this properly and the easiest way we can.


Thank you

G_M

WispaGold1 wrote: »

The property is owned by my sister, who owns it outright without any mortgage. It is valued at circa £250,000 which is what I have agreed to pay for it. £175,000 will come from my mum, who has this money in a joint savings account with me. The remaining £75,000 will come from my personal current account.


My sister has bought another property, and therefore needs to sell this one within 18 months to not be liable for capital gains so we have until approximately March 2016 to complete the transfer to me, but ideally needs to be done much sooner, as early as next month, so my sister can pay off her mortgage fully in her new property.
Since the money is available and no mortgage needed, + sister already has other hoome and you already live in property being purchaesed, there's no reason for a delay. 2 weeks?

I assume we will need a solicitor or conveyancer to complete the legal transaction,
No. Your choice.
and they will probably need to do area searches and other legal duties. Is this correct?
No. Up to you whether you want searches, survey etc done. If you know the property, and know the area (and have access to seaches etc your sister did) you may choose to skip these. Your choice.

Also with regards to the money transfer, would it be ok if my mum transfers the 150 directly to my sister and I transfer the 75 directly to my sister, or does this need to be legally documented somewhere, or go through a solicitor?
As long as sister receives the money there's no problem.
Yes - legal documentation:
1) SDLT for stamp duty and
2) TR1 for land registry

Thank you

To transfer ownership:

TR1, AP1, ID1:

https://www.gov.uk/government/publications/registered-titles-whole-transfer-tr1

For DIY conveyancing:

http://www.amazon.co.uk/Which-Guide-Conveyancing-Consumer-Guides/dp/085202813X/ref=sr_1_1?s=books&ie=UTF8&qid=1439568572&sr=1-1&keywords=diy+conveyancing

For stamp duty:

https://www.gov.uk/government/publications/sdlt-guide-for-completing-paper-sdlt1-return

Dird

So this is how they live in the Capitol :shocked: