Buying out siblings share of inherited property question

Muttonchops_1943

Hi,

Its been quite a drama trying to buy out sibling's share of inherited property (split 50/50 between two). Family employed Co-op to handle the probate. We are living in the inherited property. My partner is the executor of the will as well as beneficiary.

We were told in order to buy out the sibling, we needed to appoint a conveyancing solicitor to handle the sale/purchase in order to buy out sibling's share. (all mutually agreed with sibling). So far so good. 

Only the Co-op and conveyancing solicitor couldn't agree on how to proceed. We had conflicting advice from both. Co-op said the land registry could be transferred from late parent's name straight to my partner (the son) and myself once funds were in place to transfer and satisfy the monies owed to the other sibling. The conveyancing solicitor said this couldn't be done - it had to be transferred over to my partner and his sister first, and then a secondary land registry transfer over to partner and me.  Co-op were adamant this was incorrect advise.  

After 2 months of getting absolutely nowhere between them, we have ended up appointing a new conveyancing solicitor nominated by Co-op. Bank have approved what they call a Capital Advance mortgage - not sure if this is different to a normal mortgage, but they suggested its because my partner already owns 50% ownership of the house through inheritance. 

New conveyancing solicitor is now saying it is mandatory for us to have all the usual land and environmental searches done - this seems surplus to requirements to us as we are already living in the property. Just wondering if this process is correct? The process seems to be as dragged out as long as possible and nothing straightforward. You'd think we were the only people in the world to have gone through buying out a share of inherited property!

Any thoughts at all please?

RAS

Assuming England or Wales...

The conveyancer is working for the mortgage provider and has to meet all their requirements. So they will probably want the same confidence in the security of the loan as if you'd rocked up with 50% equity and were buying another property.

The co-op are right about transferring from the estate of deceased to your partner and yourself without transferring to both beneficiaries first.. 

Have you had a talk with the solicitor about joint tenancy/tenants in common, and a trust deed if you are not married?

Muttonchops_1943

Hi - yes it is in England and we will be tenants in common. Long story cut short, we sold our house last year and had offer on another property which fell through. Then my partner's parent passed away so we agreed to buy the share off his sibling instead and keep the property. We are looking to get married at some point this year/next and have already made out new wills to reflect the purchase of the inherited property. We did look at tenants in common and a family trust deed but I wasn't comfortable with either. The Co-op advice was that although my partner and I were fully agreed that a surviving partner should have the right to remain in the house until their passing, it wasn't an absolute guarantee that would happen if the trustees decided it was in the best interests of the beneficiaries to sell before then.

So joint tenants it is, and our wills reflect that our intended beneficiaries will only receive the house once we are both passed. (not that we are intending to go anytime soon!) 

getmore4less

TIC would be fine  with life interest and the survivor as one of the trustees.

vbrown77

Our solicitor asked.if we wanted search hes and we declined.  Be aware that if your sibling owns another property anywhere in the world then you will.be liable for the higher rate stamp plus all the legal fees and to add sibling is not in anyway obliged to share the costs.  

madbadrob

Hi just a thought,  When you made the new will did you make the point of stating in the will that you would be marrying in the future?  ie something along the lines of "I make this will in anticiaption of marrying ....... (partners name)

If not then you will need to make a new will again after marrying as the will you currently have would be invalidated

Rob

silvercar

vbrown77 said:

Our solicitor asked.if we wanted search hes and we declined.  Be aware that if your sibling owns another property anywhere in the world then you will.be liable for the higher rate stamp plus all the legal fees and to add sibling is not in anyway obliged to share the costs.  

 This isn’t true here. Sibling is selling not buying. Even if this is being done as a two stage process, sibling is inheriting not buying, higher SLDT only applies to purchases.