Probate and Conveyance Advice Please, would be really grateful for any advice

Ian_Ford

Hi there,
I really hope someone can help, I am a beneficiary of my grandparents estate of 25%.
There is a small house I am interested in gaining from the estate. Can I use part of my share against the property and pay for the rest of the house?
Does anyone know anything about the stamp duty implications of this type of exchange within probate?

I really appreciate any advice you can give me.
Many thanks in advance.
Ian

Keep_pedalling

If the other beneficiaries agree this should be fairly simple. How much will you need to buy the house, and do you own any other property?

Ian_Ford

Hi there,
Yes I have a small terraced property where I live currently.
It will cost me £150,000 to gain the property in part payment and my share would make up the rest of the value of the property.
Thank you so much for your help.
Ian

getmore4less

You will need to consider the extra SDLT on the purchase.

Keep_pedalling

Ian_Ford wrote: »

Hi there,
Yes I have a small terraced property where I live currently.
It will cost me £150,000 to gain the property in part payment and my share would make up the rest of the value of the property.
Thank you so much for your help.
Ian

So that will be 2% on the amount above £125,000 plus 3% on the whole £150,000 as this will become your second property. This assumes you are not selling your existing property to move into the inherited property.

EasySolution

Generally speaking property transfered by Assent under a Will is not subject to SDLT.
Providing that there is a power of appropriation in the Will, your plan looks doable.

getmore4less

EasySolution wrote: »

Generally speaking property transfered by Assent under a Will is not subject to SDLT.
Providing that there is a power of appropriation in the Will, your plan looks doable.

There is consideration on this purchase.

Yorkshireman99

Ian_Ford wrote: »

Hi there,
I really hope someone can help, I am a beneficiary of my grandparents estate of 25%.
There is a small house I am interested in gaining from the estate. Can I use part of my share against the property and pay for the rest of the house?
Does anyone know anything about the stamp duty implications of this type of exchange within probate?

I really appreciate any advice you can give me.
Many thanks in advance.
Ian

It can be done if the other beneficaries and the exexcutors agree. A professional valuation at the date of death will be needed that the executors will have to arrange but you will have to pay for plus any other cost incurred by the estate.All parties must get separate paid for legal advice that you should pay for.

eddyinfreehold

In a simple estate this is easily achieved. First obtain a valuation of the house in question from a RICS surveyor. That value will form a part of the value of the total estate. After probate and SUBJECT TO THE AGREEMENT OF THE EXECUTORS AND BENEFICIARIES the valuation at date of death plus any balance owing after your beneficial interest should secure the property. When my father died he left his small house, a building that had been in the family for generations. His three children were joint executors and joint and equal benficiaries. My brother and I had no interest in the property but my sister did, so after probate she took it at the DoD valuation and we received a cash equivalent all during an interim distribution of the estate. As it is my sister's 2nd house, should she sell it at a profit she will of course be liable for CGT. Having brought it from the 1930s to the 21st century,I suspect she will gift it pretty soon to her 3 children equally, who are at or close to majority.

Linton

Some contributors may be missing a key point in the Original posting. There would appear not to be enough money in the estate to give the whole of the house to one beneficiary whilst providing for the other benficiaries.

Therefore one of the beneficiaries wishes to use some of his own money to purchase the rest of the house and is asking about the SD implications.

Presumably if he were to purchase the whole of the house from the estate first then there would be stamp duty to pay on the whole value of the house even though the will entitles him to 25% which would not be subject to stamp duty. Something the OP would like to avoid.

Getmore4less appears to have come to the same view . If we have misunderstood the situation perhaps the OP could provide more information.

getmore4less

Linton wrote: »

Some contributors may be missing a key point in the Original posting. There would appear not to be enough money in the estate to give the whole of the house to one beneficiary whilst providing for the other benficiaries.

Therefore one of the beneficiaries wishes to use some of his own money to purchase the rest of the house and is asking about the SD implications.

Presumably if he were to purchase the whole of the house from the estate first then there would be stamp duty to pay on the whole value of the house even though the will entitles him to 25% which would not be subject to stamp duty. Something the OP would like to avoid.

Getmore4less appears to have come to the same view . If we have misunderstood the situation perhaps the OP could provide more information.

SDLT would only be on the 75% he paid for the house.

Juggling the estate assets to give more of the house could reduce the SDLT but consideration does not just come in the form of cash so the giving up of other assets in the estate for more house may still count as consideration.