Do we need a solicitor to buy my brothers house

Sootoo

Hi
I'm buying my brother's house - there is no mortgage involved either side, no chain either side. It's a very straightforward transaction. I'd already decided not to use a conveyancer - I can get the title etc from Land Registry, won't bother with LA searches and will pay the stamp duty to HMRC. Does he need a solicitor or can he just inform Land registry of change of ownership and I give him the money. Do we actually need a contract of sale? He's owned the house for at least 20 years and I'm buying it as a buy to let. Thanks.

Cheeky_Monkey

I would have thought that if you are paying £80,000 in cash, at some stage you would have to satisfy the Money Laundering Regulations. I would therefore have thought that it would need to be done by a solicitor, but happy to be corrected.

Sootoo

Well the money's coming from different sources - part lump sum pension, part inheritance and part savings. So I'm assuming that when it goes into my bank that's when they ask where it's come from and when it goes into my brother's bank he'll be able to say it's from the sale of a house and it can be traced back to me.

dc197

If no mortgage then you can do it yourself. I think you just need to complete form TR1, in England and Wales at least.

Sootoo

Thank you - I think that's the one we need and we can draw up our own contract of sale based on an old one I have here which we can have witnessed by someone else. I think that's the way forward.

chris_m

If you already own another property, you will also need to notify HMRC and pay the stamp duty - the 3% second property rate starts for purchases of from £40K IIRC..

Sootoo

Yes I've already planned for that - we live in Bulgaria and the new house will be our main home when we come back to UK - I understand that if we sell our home in Bulgaria within 3 years we can claim the stamp duty back. I need to speak to HMRC though because we had to set up a company to buy the Bulgarian house which is probably worth less than £40k so just wondering if we may get away with it

SmlSave

May I suggest that you get a book from the library and read up on doing your own conveyancing.

Although for the Land Registry you'll just need ID1 forms for you both. An AP1. A TR1. A SDLT5. And that's it, done.

Of course don't forget to pay the higher stamp duty!

But, nothing causes more grief than money. If the house develops a fault in the future, if a covenant in the Deeds you don't currently understands pops up etc...... are you going to be able to look back and think I wish I'd used a d#mm solicitor?

Sootoo

Hi - thanks for that - the ID1 form hasn't cropped up before! My brother has been in the house for years and years and keeps it well maintained. It's a pretty bog standard end of terrace house and he's never had a problem with anything popping up so hopefully it'll be the same for us.

Sootoo

Hi

I have to complete a form SDLT1 and pay the stamp duty - then HMRC return the SDLT5 certificate - do I have to send that to Land Registry.

Flat_Eric

If neither you nor your brother use a solicitor then you both need to complete an ID1. It's a Land Registry requirement to confirm your identity. You also need the LRAP1, Transfer and yes the SDLT5 certificate.