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Inheriting a house I'm wishing to sell
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gundo
Posts: 255 Forumite
I'm the sole beneficiary of my mother's will and I've inherited her house. She lived in the house that was in joint ownership with my father who died more than a decade ago (she was the sole beneficiary of his will).
She died last year (2018) and I now have probate. I've contacted the mortgage lender (the mortgage was paid except for £1 which was so that the lender stored the deeds securely). I supplied the lender with the grant of probate for my mother and my father's death cert and the grant of probate for him (I'm the executor and I was for my father and now realise I neglected to inform the lender and the land registry that he'd died). The mortgage lender has informed the land registry that the mortgage is paid and no charge on the property exists. This morning I received the deeds by post.
My question is this: to sell the house do I first need to inform the land registry that the property is now mine i.e. transfer the property to my name? Or should I just sell the property and then they transfer the property into their name direct and I supply them with grants of probate for my father and mother when they purchase?
I'm not sure what's normal to do in these cases. I am intending to sell.
She died last year (2018) and I now have probate. I've contacted the mortgage lender (the mortgage was paid except for £1 which was so that the lender stored the deeds securely). I supplied the lender with the grant of probate for my mother and my father's death cert and the grant of probate for him (I'm the executor and I was for my father and now realise I neglected to inform the lender and the land registry that he'd died). The mortgage lender has informed the land registry that the mortgage is paid and no charge on the property exists. This morning I received the deeds by post.
My question is this: to sell the house do I first need to inform the land registry that the property is now mine i.e. transfer the property to my name? Or should I just sell the property and then they transfer the property into their name direct and I supply them with grants of probate for my father and mother when they purchase?
I'm not sure what's normal to do in these cases. I am intending to sell.
Trying hard to be a good moneysaver.
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Comments
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The solicitor dealing with the sale conveyancing will deal with that as part of the usual paperwork - no need for you to do anything now.
You can sell straight from the estate in your role as executor.0 -
The only thing that will slow down the process of selling is if the property is not registered with the Land Registry. If it isn't, then the sale will trigger a compulsory first registration. Make sure that you have the deeds along with as many of the conveyancing documents as you can. When you complete on the sale, the new owners can then submit a first registration and gain absolute title for the property.
Don't bother transferring the property in to your name first - It could incur capital gains tax, and if you already own a house, cost extra in stamp duty. If you don't own your own property, you'd lose your status as a first time buyer along with any incentives that brings.Her courage will change the world.
Treasure the moments that you have. Savour them for as long as you can for they will never come back again.0 -
The property is registered, in the names of your parents, both deceased.
As Executer, you can sell - no need to transfer into your name first - indeed many reasons why best not to.
See
https://www.gov.uk/update-property-records-someone-dies
https://hmlandregistry.blog.gov.uk/2018/02/13/property-owner-dies/0 -
Thank you so much for the replies. Yes I have the deeds and it's definitely registered with the Land Registry because the mortgage lender (Alliance & Leicester, now Santander) has contacted them to inform that the mortgage is paid off.Trying hard to be a good moneysaver.0
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Don't bother transferring the property in to your name first - It could incur capital gains tax, and if you already own a house, cost extra in stamp duty. If you don't own your own property, you'd lose your status as a first time buyer along with any incentives that brings.
Just to avoid confusion for anyone reading this in the future you don't pay stamp duty on inherited property
gov.uk0 -
The only thing that will slow down the process of selling is if the property is not registered with the Land Registry. If it isn't, then the sale will trigger a compulsory first registration. Make sure that you have the deeds along with as many of the conveyancing documents as you can. When you complete on the sale, the new owners can then submit a first registration and gain absolute title for the property.
Don't bother transferring the property in to your name first - It could incur capital gains tax, and if you already own a house, cost extra in stamp duty. If you don't own your own property, you'd lose your status as a first time buyer along with any incentives that brings.
AIUI compulsory registration has to happen as part of the sale not after.
CGT can still get triggered if the property sells for more than value at DOD. transfer to your name would not trigger it the sale does either way.
As said SDLT on inherited property.0 -
Soundgirlrocks wrote: »Just to avoid confusion for anyone reading this in the future you don't pay stamp duty on inherited property
gov.uk
But if you are in the process of purchasing another property, inheriting one could have a bearing on how much SDLT you are asked to pay.Her courage will change the world.
Treasure the moments that you have. Savour them for as long as you can for they will never come back again.0 -
HIGHER rate SDLT does NOT APPLY where a property has been inherited within the 3 years leading up to the purchase of a subsequent propertyBut if you are in the process of purchasing another property, inheriting one could have a bearing on how much SDLT you are asked to pay.
read condition C in the higher rate guide (google it)0 -
That is right where the interest inherited is a 50% or smaller share: https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09795 It seems here that OP has inherited the whole property.HIGHER rate SDLT does NOT APPLY where a property has been inherited within the 3 years leading up to the purchase of a subsequent property
read condition C in the higher rate guide (google it)0
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