Property for sale after FIL's passing?

fcandmp

We now have Grant of Probate and there is a property for sale as part of the estate. Could someone please tell me if we now need to complete any Land Registry forms before the sale to transfer the title into the names of the Executors? If so, could you please tell me which one and whether there re any fees associated with such a transfer?

Many thanks

FreeBear

As executors, you would be acting as the personal representatives of the deceased. On that bases, there is no need to transfer the ownership of the property to the executors prior to selling. Transferring ownership will incur additional delays from the Land Registry, so you might want to avoid that (they said 6 to 8 weeks for me, six months later, they completed).

The Grant of Probate gives you the authority to sell the property, so just make sure a copy is included with any documents that are passed on to the conveyancing solicitor.

Savvy_Sue

The only warning I'd add to that is that if you're selling on the second death and the deeds were NOT transferred to the surviving partner on the first death, there may be delays / complications.

In simple terms: Dad died: we thought there was no point transferring deeds at that point. Mum died: when we got a buyer there was a lot of jumping up and down because there was a restriction meaning Mum couldn't sell the house without Dad's say so and the buyer's solicitors weren't happy. We ended up sending a form round five beneficiaries to get signatures from all of them and managed to get it back to Land Registry in record quick time.

So if you're in that situation, check! If not in that situation, FreeBear is correct.

Linton

Unless the executor is also the sole beneficiary surely it would be wrong to transfer the house to the executor. For example if they were to die then the house would become part of their estate. There is no problem selling the deceased's house as an executor. Actually you didnt have to wait for probate. You could have put it on the market immediately and progressed any sale until Exchange of Contracts at which point you would need to wait for probate.

getmore4less

Linton wrote: »

Unless the executor is also the sole beneficiary surely it would be wrong to transfer the house to the executor. For example if they were to die then the house would become part of their estate. There is no problem selling the deceased's house as an executor. Actually you didnt have to wait for probate. You could have put it on the market immediately and progressed any sale until Exchange of Contracts at which point you would need to wait for probate.

It would not form part of their estate they become the legal owners as trustees and not beneficial owners.


You can also exchange contracts without a grant(if there is a will and the named executors are acting) but not many solicitors will go that far unless there are compelling reasons.

fcandmp

Savvy_Sue wrote: »

The only warning I'd add to that is that if you're selling on the second death and the deeds were NOT transferred to the surviving partner on the first death, there may be delays / complications.

In simple terms: Dad died: we thought there was no point transferring deeds at that point. Mum died: when we got a buyer there was a lot of jumping up and down because there was a restriction meaning Mum couldn't sell the house without Dad's say so and the buyer's solicitors weren't happy. We ended up sending a form round five beneficiaries to get signatures from all of them and managed to get it back to Land Registry in record quick time.

So if you're in that situation, check! If not in that situation, FreeBear is correct.

Savvy sue, thanks it is second death but the deeds were changed on MILs earlier passing.

Land_Registry

As posted no need to change the title into the executors name(s) as the probate gives them the authority to deal with the deceased's estate, which includes the legal estate comprising the property.

The executors rarely register themselves on the title in their capacity as personal representatives. In my experience they tend only to do so if the estate is a complex one and/or likely to take some time. However even then they do not always apply to amend the legal title

The timescale FreeBear refers to I suspect related to a property which had previously been unregistered as first registrations can take that long at present due to backlogs of work we are dealing with.

If the title is registered such a change, if applied for, would take on average 6/7 working days currently.

FreeBear

Land_Registry_representative wrote: »

The timescale FreeBear refers to I suspect related to a property which had previously been unregistered as first registrations can take that long at present due to backlogs of work we are dealing with.

If the title is registered such a change, if applied for, would take on average 6/7 working days currently.

My case did indeed involve a compulsory first registration. On hand delivering the bundle of documents to the Peterboro' office, I was assured by the LR agent that it would take no more than eight weeks.

HHarry

I believe that the only time it's preferable to transfer the property into the names of the Beneficiaries is if you think there's going to be a Capital Gains Tax liability.
That way each Beneficiary can use their alleance against their share of the property.

fcandmp

Thanks for that tip Hharry, we are just waiting to receive first offers and will be wiser re the probate valuation used for the iht
Submission verus what the market dictates seven months later. There are three beneficiaries and with other growth in value of stocks and shares in the estate, CGT may well be a consideration.

vfm

As stated above I would not transfer the property into the names of the Executors. We were asked several times whether we wanted to assent the property our father left into the names of the beneficiaries (who were also the Executors). We refused as we saw the property as belonging to the Estate until it was wound up. This also proved the right thing to do as because the property stilled belonged to the Estate and not the beneficiaries we were allowed 6 months exemption from paying Council Tax (the property was empty). Had the property been assented we would have been responsible for Council Tax as soon as Probate was granted.