Selling Grandmas house

Savvy_Sue

RAS said:

You need to be aware that if the value of the house rises between the date of death and the date of sale, the estate will incur a CGT liability. Not so difficult if prices in your area are stable, but in some areas it could cost you.

If sold this financial year after the house was transferred to the 4 beneficiaries, you could each claim £6k allowance. If sold in two years time there will be no allowance.

Do you have specific plans with the house and the means to maintain it and pay any enhanced CT bills plus insurance etc?

I do think these are key questions: I can understand that with the fairly recent loss of your aunt, your mum may be feeling overwhelmed, and not up to dealing with the sale of the house, but if you've made the decision in principle to do so (and from an earlier post it sounds as if you have), then there are usually better reasons to get on with it than there are to leave a house empty. Of course if someone reliable is currently living in it and taking care of it both materially and financially, then this reduces the pressure, and may complicate the sale, but an empty house risks becoming a serious liability, and WILL continue to cost money in terms of insurance and council tax, if nothing else. 

Can you 4 work out a way to support mum in selling the house? Could one of you take on the necessary dealings with an estate agent, even if Mum has to sign the paperwork? Is there anything else you can help her with? 

Keep_pedalling

darrend2812 said:

Thank you all for the useful comments. 


All four of us grandchildren are not keen on sell my grandmas home right now -  where does that leave us if the will states it needs to be sold? My mum is happy to leave the house un-sold but she is unsure how to deal with this? Once again, if we delay the sale, do we need to move the property in to our names? Regarding the FTB which I assume means first time buyer status.. we are all homeowners. 

Why? all you are doing is creating more hassle for the executor. Insurance companies are not keen on insuring empty properties and the estate is going to be paying CT for no good reason, 

darrend2812

Hi @RAS, thank you.

Yes that is something to be mindful off - The property is in SE London so houses are relatively stable but has increased around 100k since probate approved in 2019. We are aware the we do have to pay CGT. What is the 6k tolerance you are referring to? 

My aunts husband still lives in the property but as grandma's will is to be sold  - he would need to move out - but we are not in any rush or forcing him out. 

darrend2812

@Land_Registry - I'm not familiar with the property alert - What is the purpose of this? 

Spendless

Doesn't the will say that the executors can work together or independently (sorry I forget the legal phrase) if it does then your Mum should be able to act alone.  

Land_Registry

darrend2812 said:

@Land_Registry - I'm not familiar with the property alert - What is the purpose of this? 

It’s a free service aimed primarily at homeowners who may feel especially vulnerable to the risk of property fraud - for example those not living at the property or renting 
However some use it for other reasons, many different reasons actually and not linked to fraud risks. 

It’s a simple service and simply notifies you by email if a significant application is submitted such as a priority search/register update. The notification only confirms who has applied so name and address as provided. 

Basic understanding is they’d be known to you so if selling, mortgaging or leasing for example. But if not then you are alerted and can contact them direct as appropriate. 

In this case you have a deceased’s property perhaps with nobody living there so the alert service provides some assurance 

Savvy_Sue

darrend2812 said:

Hi @RAS, thank you.

Yes that is something to be mindful off - The property is in SE London so houses are relatively stable but has increased around 100k since probate approved in 2019. We are aware the we do have to pay CGT. What is the 6k tolerance you are referring to? 

My aunts husband still lives in the property but as grandma's will is to be sold  - he would need to move out - but we are not in any rush or forcing him out. 

Right, that starts to make more sense. Does the will give your uncle a right to remain until his death / until he no longer needs it? Is he able to keep the property in good repair and keep on top of the bills? Are there any clauses about that in the will? Does he get NO benefit from the sale? Is he well provided for in his own right? 

darrend2812

Hi @Savvy_Sue, Thanks for your help. 

The will does not permit my uncle to live in the property and is worded that after the death of my aunt (who lived in the house) the house must be sold but we (4 grandchildren) are reluctant to sell.

Savvy_Sue

There are no strict time limits on when an executor MUST complete eg a house sale after probate has been granted, and if none of the beneficiaries are in a hurry to get the money, that's the only source of pressure to do so. 

However, there are some things you should be aware of: 

• If any of the beneficiaries needed to claim means-tested benefits, then the part-share of the house might cause complications. This is not something I'm hugely familiar with, and the fact that the beneficiaries have not received their bequest probably means it would not be taken into account - but I can't be sure of that. 
  
  
• Maintaining the house, paying all the bills (including insurance and council tax) should probably be your uncle's responsibility. Is he in a position to do this? 
  
  
• Is it likely that your uncle will wish to remain in the house until he dies? is it suitable for his needs? 
  
  
• Is your mother able to have conversations with your uncle about these things?