Inherited property - executor/beneficiary buys out siblings

Stivchik

I am one of four siblings who have inherited a registered property. I am also the only executor.
I have agreed with other three siblings to buy out their share of the property.

Is there an approved process to:
1. transfer the property to me
2. pay off my siblings
3. keeps mortgage provider happy?
4. keeps HMRC happy?

Also, would Stamp Duty SDLC be payable on the market value - or only the three x quarter shares I am buying from my siblings?

Thank you.

G_M

Stivchik wrote: »

I am one of four siblings who have inherited a registered property. I am also the only executor.
I have agreed with other three siblings to buy out their share of the property.

Is there an approved process to:
1. transfer the property to me
2. pay off my siblings
3. keeps mortgage provider happy?
4. keeps HMRC happy?

Also, would Stamp Duty SDLC be payable on the market value - or only the three x quarter shares I am buying from my siblings?

A) Start with 4 as that comes first. As Executer you
a) value the entire Estate
b) pay any Inheritance Tax (using estate funds if there are liquid assets, or by selling the property which you want to keep, or by 'lending' the estate some of your own money).
c) obtain Probate

As part of A) above you will have valued the property. Divide that value by 4 and pay each of your 3 siblings 1/4 from your own funds. Get receipts.

C) Transfer the property Title from the dceased's name to your name using the Grant of Probate

D) The mortgage provider - that's the complication. Do you mean
a) an existing mortgage, or
b) a new mortgage you intend to take out in order o pay off your siblings, or
c) both?

The existing mortgage (if any) will have to be paid off. Like HMRC, you can eiher use other Estate assets (eg investments) if any, or you can 'lend' the Estate some of your own money. Or you could apply for a new mortgage in your own name and use that to pay off HMRC, the existing mortgage lender and/or our siblings.

Finally, prepare the Esstate accounts when the estate is wound up, showing
* total value of all estate assets
* total income/expenditure during process of managing the estate
* tax and other estate debt payments
* distribution

getmore4less

the easiest way to think of it is as a standard purchase

You(as you) buy the house off the estate using your share as deposit.

As executor you treat is any other purchase of the house from the estate.


If you need a mortgage then this can simplify the situation as most understand this process.


if you inherit the house then try to buy them out you can get issues with the lenders that use the 6month rules.