Selling inherited property to buy new home.

Agraham1826

My dad sadly passed away last year after a long battle with cancer. He left my siblings and I some small rental properties that he had for his pension (he was self employed builder so didn't have an official pension). After a lot of thought we've decided to sell them, we are not from the area they are and it kind of just makes us feel a bit down sorting things out with them. So I have my own home, for about 4 years now, I can't over pay my mortgage by that much without having a charge but if I move I can port over my mortgage and basically pay for a house for less money than I am now as I live in an apartment with service charges and parking costs etc. will the solicitors need a copy of the will etc like you would when getting a cash inheritance, letter from the executor (there was three executors, my sister/step mum/step sister, but would it need to be from my step mum? Or could it be my sibling?) 

Thanks in advance! 

Flugelhorn

I think it would be whatever the solicitor requires - possibly the will and a statement of completion on the sale?

TripleH

Are you getting an actual house or the proceeds from selling all houses split by beneficiaries?

If you need a mortgage but intend to part fund the purchase with inheritance, I see no issues. It might be easier to simply sell your home and buy a new one without porting mortgage as no guarantee existing lender will want to lend on that house (they may lend on too high a proportion of properties in the vicinity for their risk department to allow).

Bookworm105

your question appears to be in order to sell the rental properties what will the conveyancer need as evidence of right to sell (ie ownership)

if the estate still owns them, then the estate will be the one instructing the conveyancer so the executor produces the grant of probate as proof of right to sell.

if on the other hand ownership has been formally registered in your and siblings actual names, then the normal situation applies, you sell as legal owner.

in both cases do not forget to check if Capital Gains Tax is relevant given these are not your main homes. If it applies make sure you meet the 60 day time limit for declaring and paying the tax. (If selling as executor there is only a single £3,000 allowance and a single total gain, if sold in personal names you each get an allowance against your respective shares)

Agraham1826

Hello, sorry may need to clarify, the houses are in our names already, they have been through probate. We would sell the rental properties, they don't have mortgages as he bought them really cheaply years and years ago. 

I believe they were valued after he died, so I think we would only pay capital gains if they price has gone up since then and then pay capital gains on the price increase amount? 

It would be my own residence I'm porting my mortgage over as it was a 5 year deal and I'm only 2 years in. My main concern is just having to get a hold of the will etc. my siblings was an executor but never actually saw his will and it's just a bit awkward with that side of the family 

YBR

If I read this correctly, you own and occupy a flat (mortgaged), and part-own rental properties (no mortgage)?

You and your co-owners will sell the rental properties, so you will receive a lump sum after costs and need to pay Capital Gains tax on the increase in value.

Once this is done you intend to sell your flat and buy a house, porting your mortgage and using the lump sum. The question is what proof of funds would be required?

You would have to check with the conveyancer, but I'd guess the easy way is the will and a statement of completion on the sale of the rental properties. It should be easy enough to get hold of a copy of the will as it has been through probate https://www.gov.uk/search-will-probate.

SiliconChip

Agraham1826 said:

Hello, sorry may need to clarify, the houses are in our names already, they have been through probate. We would sell the rental properties, they don't have mortgages as he bought them really cheaply years and years ago. 

I believe they were valued after he died, so I think we would only pay capital gains if they price has gone up since then and then pay capital gains on the price increase amount? 

It would be my own residence I'm porting my mortgage over as it was a 5 year deal and I'm only 2 years in. My main concern is just having to get a hold of the will etc. my siblings was an executor but never actually saw his will and it's just a bit awkward with that side of the family 

I've highlighted the two important parts of your post: if probate has been granted then the Will has become a public document that you can find by searching the probate records.

https://www.gov.uk/search-will-probate