Buying out sibling from inherited parents house

abukco

.resolved so deleted

Keep_pedalling

Are there sufficient other assets in the estate to give him his entire share of the estate from those and you include the entire house as part of your share?

Annisele

If the answer to Keep-pedalling's question is "no", will you need a mortgage to raise the funds to buy out your brother? If a mortgage is going to be involved, then you will need a solicitor - the lender will insist on it.

km1500

If you are paying your brother cash from eg your savings then you can pay him and then send those forms to the Land Registry yourself, or pay a solicitor £2-300 (my guess) to do it for you to give you extra piece of mind.

propertyrental

'the sole executors of our parents house'

I suspect you mean Executors of parents Estate, of which the house forms a part? Did you mum not have a wedding ring? Other jewelry? Clothes? Maybe a car? That all forms part of the Estate.

I also assume you and brother are not only Executors, but also Beneficiaries?

So as asked above, what exactly does the will say? and what is he value of the property> and what is the value of the Estate?

How will you pay your brother? Drom other assets in the Estate? from your savings? From a new mortgage? Or what?

The answers to these Qs will affect the answers to your Qs!

SDLT_Geek

abukco said:

My brother & I are the sole executors of our parents house. I have been left 65% & he 35%. He lives in USA so he is agreeable to me buying out his share. 

My questions are:

1. Do we need a solicitor for this or  is this just a matter of me filling out a stamp duty form (even tho there will be no stamp duty to pay as brother's 35% will be under 250k) and then me filling out the Land registry forms to transfer the Land Registry of the house from my deceased parents (Tennant's in Common) over to me?

2. Would the above (question 1.) be enough for the property to then officially be in my name (Land reg in my sole name) or does there need to be some other official document to state my brother has been bought out?

I have contacted the land registry and they have advised on which forms I need to complete and the documents I will need to send them i.e. Mum & Dad's death certs, probate, which all seem straight forward and I did all the 11 forms for HMRC myself for my parent's estate and probate has been granted.

Buying out my brother from our parent's house will be the final step in putting a very upsetting, stressful period of my life to bed, so I can move forward with my life. Any advice much appreciated.

I expect the property is in England, so the relevant stamp duty is stamp duty land tax,.  Is that right? 

I wanted to comment on your point as to the sum being under £250,000.  That would be fine so long as the higher rates of SDLT for additional properties (currently a 3% surcharge) do not apply.  Have you checked that yet?  Do you have other property interests?

abukco

In answer to the questions...my brother and I are sole beneficiaries & executors of the Will (65% to me & 35% to brother of house and monies). I have been left more as I gave up years of work to look after both our parents in their final years as my brother lives in USA for the last 30 years +, so all their care fell to me, which was an honour but also very hard work.

I have sold my flat to give me the funds to buy my brother out so there is no second property.

I want to know if it's just a matter of filling out the stamp duty form and the lad registry form to put the house in my name or is there something else that needs to be done to show the house is now officially in my name and my brother has been bought out.

I have been sent a stamp duty form by the land registry but not sure how to fill it out. I know there is a stamp duty line you can call to get help with filling it out.

Does anyone know the order of the process? Do I need to do the stamp duty first and then I he land registry forms?

propertyrental

Yes. Land Registry won't register the new owner till SDLT is paid (if due).

Assuming no mortgage anywhere (currently or for you to buy), you can simply trasfer from parets' manes to yours. And then send the £ to your brother.

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

SDLT_Geek

abukco said:

In answer to the questions...my brother and I are sole beneficiaries & executors of the Will (65% to me & 35% to brother of house and monies). I have been left more as I gave up years of work to look after both our parents in their final years as my brother lives in USA for the last 30 years +, so all their care fell to me, which was an honour but also very hard work.

I have sold my flat to give me the funds to buy my brother out so there is no second property.

I want to know if it's just a matter of filling out the stamp duty form and the lad registry form to put the house in my name or is there something else that needs to be done to show the house is now officially in my name and my brother has been bought out.

I have been sent a stamp duty form by the land registry but not sure how to fill it out. I know there is a stamp duty line you can call to get help with filling it out.

Does anyone know the order of the process? Do I need to do the stamp duty first and then I he land registry forms?

It seems unlikely to me that the Land Registry would send you a Land Transaction Return form SDLT1.  Was it HMRC who sent you that?  

There is guidance as to how to complete it here: https://www.gov.uk/government/publications/sdlt-guide-for-completing-paper-sdlt1-return

EssexHebridean

You’ll need the SDLT5 form (the one that confirms. stamp Duty declaration has been made) to go with the AP1 form - the form for amending of the register. 

Which sections of the SDLT1 form are you unsure about - it may be that someone here can  assist. 

GDB2222

As joint executor, your brother will also need to sign all the LR forms. That’s good, because he can’t later dispute the transfer. You should of course get this agreement between you in writing. 

I can’t think of anything else. The land register was originally supposed to be something a layperson could deal with, so I think it is great if you just do that.