House Purchase from a Family Member

Parnface

Hello,

Myself and my partner are purchasing a house from a family member. There is no mortgage on the property and we will be paying in cash.

I have been quoted by a conveyancer to do this as a purchase of nil consideration.

However after some research we are considering filling the TR1 (transfer deed) and applying to the land registry to avoid unnecessary legal fees.

As there won't be any searches or supervision of money transfer, can anyone help to advise if there is anything we are missing. Or is it a straightforward process with the TR1 only?

Thanks in advance for any help.

user1977

Parnface said:

I have been quoted by a conveyancer to do this as a purchase of nil consideration.

Why would the consideration be nil if you're paying a price?

Parnface

I also wondered this!
I spoke to a conveyancer and he said that as the money wouldn't be transferred with supervision from a solicitor it would be nil consideration. But after looking into this a little more, I think I have been mis-advised. 

Not sure exactly what the term would be for what we are looking to do.

Any help appreciated! Thanks

BarelySentientAI

Parnface said:

Not sure exactly what the term would be for what we are looking to do.

The term is "buying a house for cash".

Yes, you can do the forms yourselves, but then you also have only yourselves to blame if anything goes wrong now or in future.

Bookworm105

lots of posts on here covering DIY conveyancing.
You need to complete 3 forms available on @Land_Registry website
The ID form requires validating by an "approved body" who are thus likely to charge you for that "service"

propertyrental

Of course there is 'consideration' and SDLT will be charged on that if applicable.

The term you seek is 'DIY conveyancing'.

Providing there is full trust on both sides (ie family member WILL sign TR1 and transfer the ownership and you WILL hand over £X00,000) then all good.

The need for 'Exchange of contracts etc is to protect each side from eg, taking the money and vanishing.

So:

HMRC Return for SDLT

LR TR1

LR AP1

LR ID1

Parnface

Hi All,

Thanks for all your help. I have almost completed the forms.

Can anyone confirm if you need to be a business to apply online?
If applying as a non conveyancer - does this all need to be done via post?

Many Thanks