Selling my share of inherited property to my sibling who owns the remainder

ginablogs

Half of my parents' house, held by them as tenants in common, was left by our father in equal parts to me and my sister when he died 10 years ago. We did not change the record of the land registry then as their solicitor said he just needed to keep the will with the deeds. Now my mother has died and left us her half of the property so we have made a deed of variation giving my sister my share from my mother and giving me her share of the money our mother left to us. How do I sell to my sister my share of the property from my father? Can we just apply to the Land Registry to replace our parents' names with that of my sister on the deeds? Or do we need to employ solicitors to make a formal sale?

Keep_pedalling

Sorry to answer a question with a question, but did your father’s will give your mother a life interest in his share or were you left it absolutely? If the latter you are going to have a CGT liability on the sale.

ginablogs

Yes, we were left his share absolutely so I know I will be paying CGT. Just want to know how we should make the transaction.

propertyrental

https://www.gov.uk/update-property-records-someone-dies

If you transfer to a beneficiary
To transfer a property to a beneficiary, download and fill in the following forms:

• ‘Change the register’ (sometimes known as form AP1)

• ‘Whole of registered title: assent’ (sometimes known as form AS1)

You must also send:

• the original or an official copy of the grant of probate or letters of administration

• the Stamp Duty Land Tax certificate or self-certificate, or Land Transaction Tax certificate for properties sold in Wales on or after 1 April 2018 (if tax was paid on the property)

• a fee - check the fee calculator

The beneficiary must fill in ‘Verify identity: citizen’ (sometimes known as form ID1). You’ll also need to complete the form if you’re transferring the property and you’re not the executor.
Send all the completed forms and supporting documents to HM Land Registry.

ginablogs

Thanks have seen this but my sister will also be paying me for this share. Do I just inform HMRC of this in order to pay the CGT?

propertyrental

You asked:

How do I sell to my sister my share of the property from my father? Can we just apply to the Land Registry to replace our parents' names with that of my sister on the deeds?

CGT is a separate matter.
https://www.gov.uk/capital-gains-tax

ginablogs

Yes, I know it's a separate matter but I don't know what I need to do to report it.

Mutton_Geoff

ginablogs said:

Yes, I know it's a separate matter but I don't know what I need to do to report it.

You'll need to fill in a tax return (self assessment) and complete the CGT sections as well as those for your own income. Bear in mind the different rules for CGT on property, prompt settlement and possible offsets. Professional tax advice could well be moneysaving for you.

https://www.gov.uk/government/collections/capital-gains-tax-forms

Noneforit999

How is the other half being paid for? Cash? Mortgage?

If they were tenants in common, you will likely need to remove the restriction on the title at the same time as transferring ownership via the LR, although a solicitor will do all this for you. 

We are going through a similar thing and tried to do it ourselves via the land registry to save on solicitor costs.
Lesson learned for us, get a solicitor to do it.

FYI - Land registry is taking months at the moment for stuff, we had to wait over 3 months for an Assent from the estate to the beneficiaries and that was with me chasing constantly.