Advice on jointly inherited house

FreeBear

If the other siblings do not currently own their own property, do not transfer in to joint names before they sell their shares to you. Doing so would mean that they would lose their FTB status and miss out on any incentives for first time buyers.

AdrianC

getmore4less said:

macman said:

Did you inherit as joint tenants or tenants in common?

Why do you think that makes a difference?

Well, if it's JT, then simply murdering the two siblings would save all the conveyancing cost...

xylophone

You and your fellow executor transfer the property into your sole name against a formal  witnessed agreement to pay your siblings £x each  within three  months of the sale of your existing property?

CaptainChao5

Thanks all. Just catching up on responses.  My siblings are not first time buyers, they have their own houses. I spoke to the solicitor and they are trying to justify the cost by saying they have to handle the 'sale' of the house between me and my siblings. I'm still not convinced this is necessary.  

greatcrested

CaptainChao5 said:

Thanks all. Just catching up on responses.  My siblings are not first time buyers, they have their own houses. I spoke to the solicitor and they are trying to justify the cost by saying they have to handle the 'sale' of the house between me and my siblings. I'm still not convinced this is necessary.  

If you instruct solicitors to handle the sale, they will, of course, do so according to the proper procedures. Indeed they have a duty to do so. That means getting searches done, drawing up a contract blah blah blah. Yes, that justifies teir fee. If they did not, they would not be acting professionally.

However it seems unlikely you need searches done (you presumably know the property!?), and you don't need a contract (provided you and siblings trust each other!). As advised, just transfer the Title and pay the money.

Of course, if there is a risk that you might transfer the Title and then refuse to pay the siblings, well, the siblings would want a contract in place, just as an unrelated buyer would. But does that apply here........?

Note: as pointed out, SDLT will need dealing wth as well:

https://www.gov.uk/stamp-duty-land-tax

https://www.gov.uk/guidance/stamp-duty-land-tax-online-and-paper-returns

Mojisola

CaptainChao5 said:

It's slightly more complicated. I will pay my siblings cash for their share, once I sell my house (they are okay with waiting).

Couldn't this be done with a deed of variation to the will so that you inherit the property combined with signed paperwork to say that you owe your siblings £X and will pay when the house is sold.  They may want to put a time limit on this.

CaptainChao5

greatcrested said:

CaptainChao5 said:

Thanks all. Just catching up on responses.  My siblings are not first time buyers, they have their own houses. I spoke to the solicitor and they are trying to justify the cost by saying they have to handle the 'sale' of the house between me and my siblings. I'm still not convinced this is necessary.  

If you instruct solicitors to handle the sale, they will, of course, do so according to the proper procedures. Indeed they have a duty to do so. That means getting searches done, drawing up a contract blah blah blah. Yes, that justifies teir fee. If they did not, they would not be acting professionally.

However it seems unlikely you need searches done (you presumably know the property!?), and you don't need a contract (provided you and siblings trust each other!). As advised, just transfer the Title and pay the money.

Of course, if there is a risk that you might transfer the Title and then refuse to pay the siblings, well, the siblings would want a contract in place, just as an unrelated buyer would. But does that apply here........?

Note: as pointed out, SDLT will need dealing wth as well:

Yeah, I appreciate they need to follow the process. What they have not explained is that not all of these things are required.  She did mention today that stamp duty would be payable, but if I sell my house within 3 years I can reclaim it.  I'll look at the links you shared, thanks!  I was not sure how to transfer the property title and pay the money without incurring charges to them. I read that you can only gift a small amount without it being taxable, but I was not sure how this applied when dealing with the estate.

getmore4less

Mojisola said:

CaptainChao5 said:

It's slightly more complicated. I will pay my siblings cash for their share, once I sell my house (they are okay with waiting).

Couldn't this be done with a deed of variation to the will so that you inherit the property combined with signed paperwork to say that you owe your siblings £X and will pay when the house is sold.  They may want to put a time limit on this.

DOV cannot have consideration. 

getmore4less

CaptainChao5 said:

greatcrested said:

CaptainChao5 said:

Thanks all. Just catching up on responses.  My siblings are not first time buyers, they have their own houses. I spoke to the solicitor and they are trying to justify the cost by saying they have to handle the 'sale' of the house between me and my siblings. I'm still not convinced this is necessary.  

If you instruct solicitors to handle the sale, they will, of course, do so according to the proper procedures. Indeed they have a duty to do so. That means getting searches done, drawing up a contract blah blah blah. Yes, that justifies teir fee. If they did not, they would not be acting professionally.

However it seems unlikely you need searches done (you presumably know the property!?), and you don't need a contract (provided you and siblings trust each other!). As advised, just transfer the Title and pay the money.

Of course, if there is a risk that you might transfer the Title and then refuse to pay the siblings, well, the siblings would want a contract in place, just as an unrelated buyer would. But does that apply here........?

Note: as pointed out, SDLT will need dealing wth as well:

Yeah, I appreciate they need to follow the process. What they have not explained is that not all of these things are required.  She did mention today that stamp duty would be payable, but if I sell my house within 3 years I can reclaim it.  I'll look at the links you shared, thanks!  I was not sure how to transfer the property title and pay the money without incurring charges to them. I read that you can only gift a small amount without it being taxable, but I was not sure how this applied when dealing with the estate.

There is not tax on gift so get that one out of your head.

SDLT would be assessed but as there is new holiday it would only be the 3% until you sold.

davidmcn

CaptainChao5 said:

greatcrested said:

CaptainChao5 said:

Thanks all. Just catching up on responses.  My siblings are not first time buyers, they have their own houses. I spoke to the solicitor and they are trying to justify the cost by saying they have to handle the 'sale' of the house between me and my siblings. I'm still not convinced this is necessary.  

If you instruct solicitors to handle the sale, they will, of course, do so according to the proper procedures. Indeed they have a duty to do so. That means getting searches done, drawing up a contract blah blah blah. Yes, that justifies teir fee. If they did not, they would not be acting professionally.

However it seems unlikely you need searches done (you presumably know the property!?), and you don't need a contract (provided you and siblings trust each other!). As advised, just transfer the Title and pay the money.

Of course, if there is a risk that you might transfer the Title and then refuse to pay the siblings, well, the siblings would want a contract in place, just as an unrelated buyer would. But does that apply here........?

Note: as pointed out, SDLT will need dealing wth as well:

Yeah, I appreciate they need to follow the process. What they have not explained is that not all of these things are required.  She did mention today that stamp duty would be payable, but if I sell my house within 3 years I can reclaim it.  I'll look at the links you shared, thanks!  I was not sure how to transfer the property title and pay the money without incurring charges to them. I read that you can only gift a small amount without it being taxable, but I was not sure how this applied when dealing with the estate.

I wouldn't say it was accurate to say that if a solicitor is instructed they'll insist on there being a contract or searches (though they may feel obliged to point out the risks of not doing so) - there's little point in either here as far as I can see.