House buying and selling - one solicitor or two to transfer title deeds between mother and son

Doxy66

AnotherJoe said:

Seperate solicitors is as much or more a protection for them than you and because if that they may insist. 

. You also don't need searches to be redone (as no mortage is needed). If you already own the house and know the area that's an expense you and your son can dispense with if you want. When I bought a place 5 minutes walk from me with cash I instructed the solicitor not to do searches, same for when my mum bought a place next to my brother, he knew the area what was going on searches woudl have been a waste of time and money. The solicitor will probably have you sign a disclaimer and ask you to reconsider but again that's for their protection not yours. You already know the house and presumably would be aware if the council was planning (for example) to build a motorway through the area or a sewGe farm or whatever. 

Great - I will let my son know as he is 'buying' that will really be his call and he can instruct his solicitor accordingly - i am hapy to share with him the searches that were done this time last year which were all fine so that is reassuring - seems a waste of time and money to re-do in the circumstances - just trying to educate myself as best I can as despite being asset rich with the flat am totally cash poor - partly why i need the loan paying back - so thank you  you are all helping a lot 

hjd

I have been doing a transfer of my late mother's property, as her executor, to one of my brothers, who has always lived with her.
I found one firm of solicitors who were happy to do it in house, with separate partners/conveyancers acting for each "side". He doesn't want any searches and isn't getting a mortgage, but there will be stamp duty involved because he will be paying money into the estate. Solicitors were happy with that.
At least with one firm they should cut out delays in sending stuff between solicitors.

davidmcn

hjd said:

I have been doing a transfer of my late mother's property, as her executor, to one of my brothers, who has always lived with her.
I found one firm of solicitors who were happy to do it in house, with separate partners/conveyancers acting for each "side". He doesn't want any searches and isn't getting a mortgage, but there will be stamp duty involved because he will be paying money into the estate. Solicitors were happy with that.
At least with one firm they should cut out delays in sending stuff between solicitors.

Not sure which country you were dealing with, but the rules in Scotland about conflict of interest are a bit stricter than England & Wales - might be ok if it was a pure gift but if the son is effectively buying it then I doubt it can all be done within one firm.

MovingForwards

I've just completed my purchase, with a mortgage, in Scotland and aware how different it is to England.

Davidmcm explained what a private mortgage is and why it's what you are after. 

The fees you are being quoted seem high, mine varied by about £200 from the three I obtained. I would suggest contacting several firms and asking them for quotes.

Your son can buy the home from you while at uni, provided you don't have an outstanding mortgage on it.

The terms of repayment are agreed between you. So if you wanted £100 per month for the first year, £200 the next year, £500 the one after with full repayment in 10 years you can. But if you are cash poor, can you really afford to not just sell it and wait for the money?

Doxy66

davidmcn said:

Doxy66 said:

MovingForwards said:

One solicitor each as you both need independent legal advice. Find a better one than who you have spoken with!

Sell the property to your son, have a private mortgage set up and registered on the deeds. That way your son can remortgage in the future to pay you off and you have the security knowing the mortgage debt to you is registered.

As there's no normal mortgage, it's up to your son if he wants searches done, same as if he were a cash buyer.

Be aware of capital gains tax as this wasn't your home you were selling and you never lived in it.

not clear what a private mortgage is or why you suggest that being registered now? 

You said "a declaration of trust/deed of trust documenting repayment details and he can start to pay the loan off now" - do you mean you're lending him the price (or some of it) and he's making repayments to you? If so that's a private mortgage, not a "deed of trust" - so you have a loan agreement setting out what's mean to be paying, and a standard security deed registered over the title to give you a charge on the property (i.e. so he can't flog it off without your involvement, or allowing you to repossess if you had to), like a normal mortgage.

Yes!  That's the one! Deed of trust is an english thing - this a a loan agreement thank you

Doxy66

MovingForwards said:

I've just completed my purchase, with a mortgage, in Scotland and aware how different it is to England.

Davidmcm explained what a private mortgage is and why it's what you are after. 

The fees you are being quoted seem high, mine varied by about £200 from the three I obtained. I would suggest contacting several firms and asking them for quotes.

Your son can buy the home from you while at uni, provided you don't have an outstanding mortgage on it.

The terms of repayment are agreed between you. So if you wanted £100 per month for the first year, £200 the next year, £500 the one after with full repayment in 10 years you can. But if you are cash poor, can you really afford to not just sell it and wait for the money?

Thanks for all that - realising I don't need to stick with the firm who acted last year (and also it is a partner quoting this time not an associate which I think will put fees up) Good idea to email simple request to 3 conveyancing solicitors in Glasgow and get quotes, as I would for any other job.  I have minimal outgoings and live with my partner who is similarly low key but at least working 3 days a week. Happy to help my son out, was always the deal & he works to supplement his student loan plus there is a tenant so therefore rental income so this works well for all (just wish I'd realised that a year ago) 

Doxy66

Thanks again for your help with this - we are progressing - I need some help re: interest charged on the loan - we have agreed it should be higher than I would get in a savings account atm and lower than my son would pay for a mortgage from a bank.  It is a 20 year loan. We have agreed to review it annually as I have absolutely no idea how we can link it to the base rate like a tracker.  Do think that is reasonable?  Maths never my strong point so assume if he is paying me back at £650 a month at say 1.50% for a year and then maybe 2% or 2.5% for another year, then each year we adjust the final amount owing?  Sorry to ask such a daft question but outside my knowledge really as I have just paid what the bank has asked on my mortgages! I will see if a local accountant might help me as outside the remit of the solicitors.  Feels reasonable to ask 1.75% right now with base rate being at an all time low - I am not earning anything atm due to COVID and my son still a student so frankly we are both needing to be careful. Thanks again in anticipation.