Selling inherited house

Millsandovis

As per title suggests, selling inherited family home that I have lived in continuously since early 90s. I was 3 when we moved in and both parents have passed away. 

My question is this; I have slightly difficult buyers who are asking about everything. I get questions have to be asked but feel like they’re going a bit OTT and belt & braces but alas. 

I can answer some questions truthfully as my parents kept a lot of documentation and I can remember certain things happening but am I okay to just say I don’t know to certain things? They are asking me about insurance policies that were in place ‘when I bought the house’ and even though I keep telling my conveyancer’s paralegal the situation and that I never bought it these types of questions keep coming. There’s only so many times I can say my parents are dead and I don’t know. 

One more thing, they are asking for building control documentation on things that predate us as a family moving into the house I.e a brick outbuilding/shed being built and knock through of 2 living rooms into one etc. I just answered that they predate us and had no idea on building control. From my small amount of research on here am I right in thinking the passage of time is good enough for a lot of the work? (We’re talking 40 years here & no extensions etc). I don’t think any of it came up when my mum and dad bought the house and I can’t see anything in their original documentation that was left. 

I am fairly certain I may need to get an indemnity policy for restrictive covenants that are on the deeds from the 1890s but would like to know if any of the above would also result in insurance policies having to be bought. 

Thanks all 

lincroft1710

It is perfectly acceptable to write "Not Known" if you do not know the answer and very sensible if you think you know but are not certain. If your buyers want indemnity policies, let them buy them.

Flugelhorn

if you are selling as the executor you just say "don't know / not known" to anything like this 

theartfullodger

As above. (Sold with sister late brother's house, largely untouched since 1971).

Probate been done?

You might be liable for CGT if it's value increases between sad demises and sale. Get paperwork ready - needs declaring and paying within 60 days of sale.

Millsandovis

Brilliant - thought so but thanks for confirming! Can I still use my role as executor to answer questions like that if I was sole beneficiary? 

theartfullodger

If?  Are you?

Millsandovis

theartfullodger said:

As above. (Sold with sister late brother's house, largely untouched since 1971).

Probate been done?

You might be liable for CGT if its value increases between sad demises and sale. Get paperwork ready - needs declaring and paying within 60 days of sale.

Is that relevant to me as (not if!) I’ve always lived here and inherited the house? I’m sole owner on the title register now with no restrictions. Probate wasn’t needed after first parent died and second parent left everything to me in their will 

propertyrental

If the property was transferred into your name by the Executors after probate was granted, then you cannot respond as Executor - you are selling as an owner-occupier. But the same principle applies. If you don't know an answer (for whatever reason' you answer 'Not Known'.

Capital Gains Tax won't apply, as my understanding is that you have used the property as your main residence ever since it was transferred into your name. Correct?

Regarding Building Control. the buyers may or may not request indemnity insurance. If they do, it's up to you whether to agree, or suggest they obtain it themselves. Really depends whether you think they might walk away from the property, and if so how easy it will be to find replacement buyers at the same (or higher) price. Also how quickly you need to sell.

Insurance usually cost £100 -200, so might be worth sucking that up.

Alternatively, take a punt and see if the buyers are going to walk away over £1-200!

Millsandovis

Yep, lived here for 31 years out of my 33 on this earth so think I’m okay on the CGT front and no issues with probate or wills etc as all the LR stuff is sorted and I’m sole owner on the title register. Will continue to answer ‘Not known’!  

Think I probably will hold out on buying insurance policies, there was a lot of interest in the house and they bid way over to get it so they’re obviously keen. I’m also quite mindful of them now trying to do anything to lower the price back in line with the other bids (they seemed chummy with the EAs and are selling their place with them - I’m in my paranoid stage I know!) so looking forward to the fun and games next week after the survey. 

Thanks for your detailed response! 

RAS

I once told our EA to hire a couple of sledge hammers and skips and book a couple of heavies for a day to solve the massive problem created by lack of BC for the half brick conservatory built c 1950. All were obviously a lot cheaper than today, and I knew the buyer wanted to demolish and build a 2 story extension. Didn't hear another peep from them.

sheramber

would there be such a thing as building control 40 years ago?

If anything was going to fall down it would have done so before now.