Legal Fees for buying out inherited property?

EJennyJ

My husband and two siblings have been left their late mother's house. His siblings have agreed that he and I can buy them out so that we can move into the property. Does anyone here know the likely legal costs (ballpark figure) we should be charged by our solicitor for dealing with this for my husband and I? One of my husband's siblings is the sole executor and he has a solicitor dealing with the estate - we've been told we need to have our own (different) solicitor to deal with our side of it - whom we will also likely engage to deal with the sale of our own home (which we need to sell in order to buy out his siblings).

However, when I queried of a local solicitor the estimated fees for this, their fees for dealing with our buying the two-thirds share were even higher than the fee they quoted for dealing with the sale of our house, which we weren't expecting. Does that seem right?

We somehow thought it would be less, since we aren't taking out a mortgage (we will use the proceeds from the sale of our house to pay for the two-thirds) .and there are no estate agents involved either - no inheritance tax, and (we believe) no capital gains tax... we thought it would be a case of the executors' solicitor drawing up an agreement of sale of the two-thirds which all three would sign, then transferring title of ownership and transfer of funds between us. Is it right that this could cost more in solicitor's fees than selling our home? If it is, well it is, and we will have to accept it, but we were surprised. Have tried to find the answer online but with no luck. I hope someone here may be able to advise...! We will go back to the solicitor and query it (we haven't signed any agreement with them yet) but thought it might be useful to see if anyone else knows - I did explain the circumstances and thought it was understood, now I'm wondering...! We are thinking of getting a quote/estimate from another solicitor just to check... is this a good idea?

JJG

Maybe get a quote from another two solicitors?

davidmcn

Buying is generally more expensive than selling (more things to check, more responsibility), but with no mortgage or contract it should certainly be cheaper than a normal purchase. Always a good idea to get several quotes whatever you're doing!

Cakeguts

Buying a house doesn't involve Estate Agent fees. Most people don't have to pay inheritance tax or capital gains tax when buying a property so you can discount all of these costs. Solicitors fees for buying a house are usually much higher than for selling a house because when you are buying a house they have to do a lot more work.

FreeBear

Cakeguts wrote: »

Solicitors fees for buying a house are usually much higher than for selling a house because when you are buying a house they have to do a lot more work.

In this instance, I would ask "Do they ?" - What additional work is involved by solicitors on either side ?

If the property is already registered in the names of the three siblings, then all that is required is an exchange of money and a change of ownership registered with the Land Registry.

EJennyJ

“
Solicitors fees for buying a house are usually much higher than for selling a house because when you are buying a house they have to do a lot more work.
Originally posted by Cakeguts
”In this instance, I would ask "Do they ?" - What additional work is involved by solicitors on either side ?

If the property is already registered in the names of the three siblings, then all that is required is an exchange of money and a change of ownership registered with the Land Registry.

Thank you Freebear - this is exactly what we thought might be involved (never having done anything quite like this before) so it came as rather a shock to get an estimate close to £2,000 for the solicitor to handle this transaction for us. We have been quoted for all the usual searches, etc., which because the property is ex-council house built in 1947, and was owned by my in-laws from the mid-sixties onward, we can't really see the need to treat it like a 'normal' house purchase with all the attendant costs. (Although we admit to being fairly ignorant in ways of conveyancing etc only having done it twice before and quite a few years ago!) - Is the solicitor being careful, perhaps, in case we want to sell on (which we don't plan on doing; but if we were to, then surely the next buyer's solicitor will do all that for them?).... well, we wondered, hence my query here.

General consensus then seems to be to get quotes from other solicitors, so we will do that. We also plan on getting a building survey done in case there may be repairs/problems ahead that we are not aware of. Should also add that we live very locally to the property at present and my hubby (who grew up in the house) is already aware of a few things that will need fixing around the place!

Since the property is not yet registered in the names of the three siblings (still waiting for probate to come back) we imagine that once probate comes back, the solicitor working for the estate will first need to register a change of ownership from the deceased to the three siblings, and then again to my husband and I - and to draw up a formal agreement to be signed by them regarding the price for the two-thirds 'buyout' . I imagine we would need a solicitor of our own to deal with that part for us? Or not? This is what we were expecting a solicitor to quote us for, not the 'full kit and kaboodle' that we have been quoted!

Thanks everyone for helping to clarify things - will get more quotes and see what they come up with! There is another not-so-local solicitor who advertises a free initial consultation, so think that might be the route to go down... or the CAB perhaps?!

Any more advice very gratefully received!

G_M

EJennyJ wrote: »

My husband and two siblings have been left their late mother's house. His siblings have agreed that he and I can buy them out so that we can move into the property.
* has probate been granted?
* who is /are the Executer(s)
* is the property still registered in the name of deceased mother, or in joint names of 3 siblings?

Does anyone here know the likely legal costs (ballpark figure) we should be charged by our solicitor for dealing with this for my husband and I?
Why pay a solicitor?

One of my husband's siblings is the sole executor and he has a solicitor dealing with the estate - we've been told we need to have our own (different) solicitor to deal with our side of it - whom we will also likely engage to deal with the sale of our own home (which we need to sell in order to buy out his siblings).
This is a moneysaving site. Why is your husband's sibling (Executer) paying good money to a solicitor for a straight-forward transfer? Mad!

Your husband's sibling simply needs to complete some Land Registry forms to transfer the property into your joint names.
In return you need to give him some cash - I assume he trusts you to do that?

However, when I queried of a local solicitor the estimated fees for this, their fees for dealing with our buying the two-thirds share were even higher than the fee they quoted for dealing with the sale of our house, which we weren't expecting. Does that seem right?
Buying is more involved than selling. All those searches, title investigations etc. Not that you need them as you know the property, you know the 'seller', so all the normal buying conveyancing is uneccessary!

But if you want to use a solicitor, as with everything, shop around.

.... there are no estate agents involved either - no inheritance tax, and (we believe) no capital gains tax...
If the value of the property has increased sufficiently from the value declared for Probate, there may be CGT.
However that is for the 'Estate' to pay, not you. So it is a job for the Executer.

we thought it would be a case of the executors' solicitor drawing up an agreement of sale of the two-thirds which all three would sign,
Uneccessary. Provided you all agree, and trust each other, no contract needed.
* transfer the money
* transfer the property
* Executer records the transfer amount in the Estate accounting records

Sorted.

then transferring title of ownership and transfer of funds between us.
THAT bit is right!
....
We are thinking of getting a quote/estimate from another solicitor just to check... is this a good idea?

If you must use a solicitor, get at least 2 more quotes.

Suggest to Executer he need not use a solicitor.

He needs:

*TR1
* ID1
* AP1
* Grant of Probate

See

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

EJennyJ

Thanks for your reply, GM -


My husband and two siblings have been left their late mother's house. His siblings have agreed that he and I can buy them out so that we can move into the property.
* has probate been granted? Waiting for Probate to come back.
* who is /are the Executer(s) One of the siblings is the sole executor
* is the property still registered in the name of deceased mother, or in joint names of 3 siblings? Still in the name of mother, because still going through probate

Does anyone here know the likely legal costs (ballpark figure) we should be charged by our solicitor for dealing with this for my husband and I?
Why pay a solicitor? The solicitor is already dealing with the estate, and was appointed by the executor (same firm as used by mother) – executor does not have sufficient knowledge or experience to deal with all of it alone

One of my husband's siblings is the sole executor and he has a solicitor dealing with the estate - we've been told we need to have our own (different) solicitor to deal with our side of it - whom we will also likely engage to deal with the sale of our own home (which we need to sell in order to buy out his siblings).
This is a moneysaving site. Why is your husband's sibling (Executer) paying good money to a solicitor for a straight-forward transfer? Mad! See previous reply – the solicitor is dealing with the legal side of the deceased’s estate.

Your husband's sibling simply needs to complete some Land Registry forms to transfer the property into your joint names.
In return you need to give him some cash - I assume he trusts you to do that? Thanks for the info, will recommend this to him. Not a question of trust – executor wants to do everything properly & has no experience

However, when I queried of a local solicitor the estimated fees for this, their fees for dealing with our buying the two-thirds share were even higher than the fee they quoted for dealing with the sale of our house, which we weren't expecting. Does that seem right?
Buying is more involved than selling. All those searches, title investigations etc. Not that you need them as you know the property, you know the 'seller', so all the normal buying conveyancing is uneccessary! Thanks, this is what we thought, and I have phrased enquiries to two other local solicitors to better explain our needs. But if executor agrees to fill in the Land Registry Forms etc. then we probably won’t use a solicitor.

But if you want to use a solicitor, as with everything, shop around.

.... there are no estate agents involved either - no inheritance tax, and (we believe) no capital gains tax...
If the value of the property has increased sufficiently from the value declared for Probate, there may be CGT. The property value is unlikely to have increased – executor obtained three valuations for probate from three local estate agents, all went to solicitor who has sent off to district valuer for probate. A relative and I did this ourselves when dealing with a relatives’ estate but this executor preferred to use a solicitor because he is acting alone and has no experience.
However that is for the 'Estate' to pay, not you. So it is a job for the Executer. Yes, we are aware of that.Not sure why I even mentioned it really!

we thought it would be a case of the executors' solicitor drawing up an agreement of sale of the two-thirds which all three would sign,
Uneccessary. Provided you all agree, and trust each other, no contract needed.
* transfer the money This does seem like the most sensible and financially wise option, will put it to them.


* transfer the property
* Executer records the transfer amount in the Estate accounting records

Sorted.

then transferring title of ownership and transfer of funds between us.
THAT bit is right!

Thank you for your advice!

G_M

The solicitor is already dealing with the estate, and was appointed by the executor (same firm as used by mother) – executor does not have sufficient knowledge or experience to deal with all of it alone

This is fair enough, and where an Executer is out of their depth, lacks knowledge/confidence, or does not have time, it is sensible to employ a solicitor to help.

But that help can be limited to certain parts of the process or can exlude certain parts. Since solicitors charge per hour, their fee can rack up very quickly with an Estate! And it's the Beneficiaries who are paying.

There is no reason the Executer can't exclude the property transfer from the solicitor's instructions. He simply has to inform the solicior of the date the transfer completed and the value of the transfer, and the solicitor can then add that to the accounts showing how the Estate has been distributed/shared out.

Waiting for Probate to come back.

The transfer can in any case not take place till Probate is granted.

Still in the name of mother, because still going through probate

There is no need to transfer into the Executer's name. The property can be transferred directly from deceased mother's name, to the Beneficiaries' names.

The Transferor (Executer) needs to prove to the Land Registry that he has authority to do this. He does this by showing them the
* Grant of Probate in his name, and
* Death Certificate (sorry - I left it off my earlier post!)

All the normal conveyancing - the searches, the contract etc are unneccesary unless the buyer or seller feels the need for them.

The link I gave you earlier not only leads to the forms needed, but to a guide on how to complete them, and even a video!


Note for others reading this thread:

If drawing up your will, do NOT appoint a solicitor (or bank, or other professional) as an Executer, unless there is no other option. They cost a lot of money.

An Executer who gets confused or lacks knowledge can always appoint a solicitor when they need one, for specific tasks or problems, thus limiting the total work the solicitor does to those bits.