Buying house from sister

harrys66

Hi currently living in house my sister owns (she has a mortgage)

I have sold my previous house and now have the monies to buy the house in cash (£100k freehold, normal end of terrace house only built 10 years ago)

I will be paying both my and my sisters conveyancing/solicitors costs

Would I be right in thinking will end up costing approx £1000 pounds on each side?

And is there any way I can cut these costs down to a minimum please?

Thanks

Harry

foxy-stoat

You and your Sister will have to get quotes from different solicitors, just shop around and use the cheapest ones.

G_M

harrys66 wrote: »

And is there any way I can cut these costs down to a minimum please?

Thanks

Harry

Yes. Since you are not getting a mortgage, you and sister can do the conveyancing yourselves.

http://www.amazon.co.uk/Which-Guide-Conveyancing-Consumer-Guides/dp/085202813X/ref=sr_1_2/279-4983636-7194415?s=books&ie=UTF8&qid=1446211213&sr=1-2&keywords=diy+conveyancing

In fact if you know the property, you could choose to skip many of the conveyancing steps (at your own risk) like survey, searches etc and simply complete a Land Registry TR1, ID1, & AP1.

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

You'd need to give sister the cash in advance so she can pay off her mortgage and get the Charge removed from the Title first.

Obviously you would not do this with a stranger, but if you trust your sister not to run off to the Bahamas with the cash, it is a simple process.

harrys66

Thanks that sounds like a very good idea.

Only thing I can think of is my sister is self employed, could go doing the DIY route make it awkward for he with HRMC/accountant?

thanks again

harry

agrinnall

Assuming her business is something different to trading in property then I would see this as an entirely personal transaction which should have no impact on her business dealings or any input from HMRC. As she has an accountant she could check with him/her, but I wouldn't anticipate any issue.

harrys66

No its totally different

Going to go with simple process of transferring agreed sale price amount over to sister, she pays of the mortgage and then we fill in all the land registry forms

thanks again

Mojisola

harrys66 wrote: »

Going to go with simple process of transferring agreed sale price amount over to sister, she pays of the mortgage and then we fill in all the land registry forms

Have something in writing before you hand over your cash.

If your sister died between getting the money and signing the LR forms, your money would be part of her estate. You could end up without your money or a house.

harrys66

we are going to put the following documents together...

1) a formal letter signed by ourselves and a witness specifying the sale date, amount etc...

2) neighbours property is for sale, going to include estate agents details of that in our docmentation as proof of valuation price at time of sale (in case hmrc come calling in the future)

process will be ...

1) have all land registry forms filled in but unsigned

2) make faster payments to my sisters account in morning

3) she makes faster payment to mortgage company same morning and asks them to remove themselves from the title deed

4) once they have confirmed removed will send of forms to land registry, actually will probably go together to nearby telford office with proof of ID (to speed things up and avoid having to pay someone to certify everything)

G_M

harrys66 wrote: »

process will be ...

1) have all land registry forms filled in but unsigned

2) make faster payments to my sisters account in morning

3) she makes faster payment to mortgage company same morning and asks them to remove themselves from the title deed
you seem to be anticipating step 3 is one day. It will take at least a week or two before the Charge is removed from the Title

4) Send SDLT form to HMRC

5) onceCharge is removed and HMRC satisfied [STRIKE]they have confirmed removed will [/STRIKE]send of forms to land registry, actually will probably go together to nearby telford office with proof of ID (to speed things up and avoid having to pay someone to certify everything)

There may be other steps: see the book.