Transfer of House Ownership

Chelsea_Blue

Not sure if this is in the correct section and just a bit of background information.

Our last surviving parent passed away earlier this year and left the family home to the five siblings as beneficiaries.
We applied for probate ourselves and it has just been granted and have settled her estate as per her instructions within the will.
This house is in England and is mortgage free. We intend rent it out for a few years to a family friend who our mother was very fond of and is almost family and very trustworthy.
We have no issues renting it, as one of the siblings currently has a couple of rental homes and will ensure all the correct paperwork, deposit scheme, inventory, gas & electric checks etc are in place.

Our only issue is how to transfer ownership of the property with Land Registry as I understand the assent (AS1) only allows up to four owners. 

Want to try and avoid solicitors if possible but not sure if we can!

propertyrental

You'll need a Deed specifying % ownership + what happens if...... (eg 1 wants to sell, 1 gets divorced and ex wants their share, 1 wants to replace roof others don't etc )

I suggest a solicitor....

Land_Registry

Chelsea_Blue said:

Not sure if this is in the correct section and just a bit of background information.

Our last surviving parent passed away earlier this year and left the family home to the five siblings as beneficiaries.
We applied for probate ourselves and it has just been granted and have settled her estate as per her instructions within the will.
This house is in England and is mortgage free. We intend rent it out for a few years to a family friend who our mother was very fond of and is almost family and very trustworthy.
We have no issues renting it, as one of the siblings currently has a couple of rental homes and will ensure all the correct paperwork, deposit scheme, inventory, gas & electric checks etc are in place.

Our only issue is how to transfer ownership of the property with Land Registry as I understand the assent (AS1) only allows up to four owners. 

Want to try and avoid solicitors if possible but not sure if we can!

You can still transfer to all 5 but we can only then include a specified 4 on the actual register. 

I’d recommend seeking legal advice as well just so you are all clear on how such an arrangement works and how it may impact on each of you both re property ownership and financially. The register will confirm legal ownership but the ‘detail’ re who has what share and what happens in future circumstances should be discussed, agreed and formalised in some way. 

gwynlas

Each of you will presumably receive a portion of rental income minus management charges and will have to declare this to HMRC, Is it worth it?

theartfullodger

appreciate you weren't asking about this but it is common (but not universal) view amongst landlords never to rent to friends or family.  Usually a very quick way to ruin relationships.

Make sure you're educated about being a landlord and landlord/tenant law.  Hope one of you has been there.

ALL rent to be declared to HMRC, CGT when eventually sold so get valued at start of any rental and keep all relevant paperwork (expenses, certificates etc etc). Declared and paid within 60 days of sale.

Bookworm105

theartfullodger said:

 CGT when eventually sold so get valued at start of any rental and keep all relevant paperwork (expenses, certificates etc etc). Declared and paid within 60 days of sale.

assuming none of the siblings have lived in it as their own main home since parent's death, then the start point for CGT will be the probate valuation, not the value at date tenancy starts.