Inherited Property

cj2804

Hello,

My husband and I are trying to buy a house.

2 years ago he inherited a sixth of a property (split between siblings - only worth around 120k between them all and some siblings are still living there), but is still not yet on the deeds. We were told that we would be able to keep first time buyer status if he wasn't named but now I have been told that because he had a beneficial interested named in the will.

My question is, do we lose first time buyer status, and if so, would it be better to try get him taken off and trust the siblings later would gift him back the funds? 

Thanks in advance!

dimbo61

Why has this not been sorted.
Some of the family are living in the house !
They should have got a mortgage and paid your husband his 1/6 share £20,000 which you could have saved into a LISA and had £4,000+ government bonus.
Who is responsible for sorting the Will ?

cj2804

Didn't come here for judgement thank you.

Executors are family members and when probate started we were not looking for a property. Obviously that would have been ideal, but the siblings still living there are not in a position financially to get a mortgage and the house has been mortgage free for 4 years. So please do not judge and say why has it not been sorted when you don't know all the facts.

AdrianC

He cannot be a 1/6th owner. Only four named individuals can be joint owners. "Name on the deeds" IS ownership.

The actual owner might be a trust (of which he's a 1/6th beneficiary) or a limited company (of which he's a 1/6th shareholder), but I suspect that it's still the estate of the deceased... or (most likely) is in the name of the current occupants... The executor of the estate (who?) has failed in their job. A few quid to download the title from Land Registry's website will answer that one.

It's not "judgement" to say that this should have been sorted in the last two years, nor are the "facts" particularly relevant. It's simply a fact of life that it should have been sorted by now, one way or another.

Right now, your husband has not got a penny of his £20k inheritance, and has not even been receiving a penny in rent from the property or interest on the £20k private mortgage he's effectively lent them. He might as well have been left nothing... All he has is a verbal IOU that's not worth the paper it's written on, and becomes less valuable as time passes and memories fade.

If he were an actual or beneficial owner, then his FTB status has gone forever. He has previously owned a property. Like virginity, FTB status cannot be regained. Some "FTB" benefits from lenders etc may be available to non-FTBs who have had a very small stake in a property or have been non-owners for a certain period of time.

At least a £20k share is small enough that it won't cause additional property +3% SDLT to be payable.