selling an inherited housing association flat

AdrianC

I mean exactly that. The improvements, the investment, the increase in value would be outside the estate.

krazydiamond

AdrianC wrote: »

I mean exactly that. The improvements, the investment, the increase in value would be outside the estate.

Just so I'm clear are you saying that any increase in value beteween now and after works are finished is ours 100% or are you saying there is no point in doing the works because any increase in value is not recognised?

silvercar

krazydiamond wrote: »

Just so I'm clear are you saying that any increase in value beteween now and after works are finished is ours 100% or are you saying there is no point in doing the works because any increase in value is not recognised?

You inherit one third of a flat in a dilapidated state. That should be transferred to your joint names and the value calculated as to what it is worth at the date of death.

Then you all make the decision to invest money in refurbishing the property before sale. Sell it at the higher price and split the profits as you agreed.

You may want to google capital gains tax liability, but I suspect that given the flat is split 3 ways and its value is small, there is unlikely to be any tax to pay.

krazydiamond

silvercar wrote: »

You inherit one third of a flat in a dilapidated state. That should be transferred to your joint names and the value calculated as to what it is worth at the date of death.

Then you all make the decision to invest money in refurbishing the property before sale. Sell it at the higher price and split the profits as you agreed.

You may want to google capital gains tax liability, but I suspect that given the flat is split 3 ways and its value is small, there is unlikely to be any tax to pay.

This is getting very confusing. The solicitor hasn't mentioned anything about the property being transferred into our names or any increase in value being outside the estate. Could it be because it is a housing association property that the conditions are different?

getmore4less

It really is mad idea developing this property in the estate administration.

What deal do you each have with the heir hunters?

Why has it taken so long to be asking this question?


As an aside it would be interesting to know what the leases say about inheritance as it is very possible for the beneficial owners to be under 55 or even minors if they inherit.
There may be occupancy clauses that make it impractical for anyone under 55 to own the place.

tomtontom

krazydiamond wrote: »

This is getting very confusing. The solicitor hasn't mentioned anything about the property being transferred into our names or any increase in value being outside the estate. Could it be because it is a housing association property that the conditions are different?

Quite possibly - it may be that the property needs to be sold directly to an eligible party (aged 55 or over). Presumably your solicitor has a copy of the lease to determine this?

silvercar

krazydiamond wrote: »

This is getting very confusing. The solicitor hasn't mentioned anything about the property being transferred into our names or any increase in value being outside the estate. Could it be because it is a housing association property that the conditions are different?

Does the solicitor know you are thinking of refubishing it? I am surprised your solicitor hasn't mentioned it. HA property or not, if it was privately owned then it can be inherited.

As an aside, the heir hunters will get less if you transfer it to your names and get the estate wrapped up before refurbishment.

AdrianC

Has the solicitor even seen the flat? Does he know it's "dilapidated"?

krazydiamond

getmore4less wrote: »

It really is mad idea developing this property in the estate administration.

What deal do you each have with the heir hunters?

Why has it taken so long to be asking this question?


As an aside it would be interesting to know what the leases say about inheritance as it is very possible for the beneficial owners to be under 55 or even minors if they inherit.
There may be occupancy clauses that make it impractical for anyone under 55 to own the place.

The genealogy company will be receiving 10% of the final net sum due to each of us.

krazydiamond

silvercar wrote: »

Does the solicitor know you are thinking of refubishing it? I am surprised your solicitor hasn't mentioned it. HA property or not, if it was privately owned then it can be inherited.

As an aside, the heir hunters will get less if you transfer it to your names and get the estate wrapped up before refurbishment.

The solicitor is well aware of the situation and the condition of the flat. I have not found them to be very helpful in giving me information and guidance which is why I have resorted to this forum.