Selling an unregistered inherited house

Ageingartist

Would CGT be payable just on registration? First time buyer status and the effect on benefits I understand. I was under the impression that CGT would be payable on any sale if the price was above probate value, that too I understand. Why would the beneficiaries not living in the house have to pay CGT just on the changing of the deeds (which in this case would trigger a registration)? I thank you for all the helpful advice, I have read so much about it I was beginning to go around in circles.
it is now looking like there will be no sale as the person in residence at the moment is unable to find anywhere more suitable. I would rather that it be resolved one way or the other, even though first registration is currently at about 18 months waiting time, at the moment it feels like the whole thing is in limbo.

Tiglet2

Ageingartist said:

Would CGT be payable just on registration? First time buyer status and the effect on benefits I understand. I was under the impression that CGT would be payable on any sale if the price was above probate value, that too I understand. Why would the beneficiaries not living in the house have to pay CGT just on the changing of the deeds (which in this case would trigger a registration)? I thank you for all the helpful advice, I have read so much about it I was beginning to go around in circles.
it is now looking like there will be no sale as the person in residence at the moment is unable to find anywhere more suitable. I would rather that it be resolved one way or the other, even though first registration is currently at about 18 months waiting time, at the moment it feels like the whole thing is in limbo.

CGT would be payable on any sale in the future if the owner does not live in the property, i.e. on the deeds but not primary residence, so it is not advisable to put the beneficiaries on the deeds if you intend to sell on or the beneficiaries are not living in the property. 

RAS

CGT is payable on any increase in value between the date of death and the sale, which is why we advise using the higher of the EA estimates if you're pricing for probate and not liable to IHT.

There is an exemption of those selling their primary residence, or who have been resident part of the time since the valuation.

That doesn't apply to anyone who has not been resident, so if you've got 3 beneficiaries, the resident one doesn't pay IHT but the 2 non-residents do, if their share of the increase (and any other capital sales) exceeds the CGT allowance.

newsgroupmonkey_

Ageingartist said:

Thank you for all the replies. Should have mentioned in the opening post that I am also the executor.

As I now see it and understand it, any transfer or sale will automatically trigger a first registration. The house would need to be completely modernised and updated/repaired so will probably be sold to a developer, I don’t think the property would be mortgageable due to its state but not 100% sure on that.
I have my father’s death certificate, the deeds, and epitome of title up to when my parents bought the house. I have my mother’s death certificate and grant of probate. The only other thing I think that I need is the written agreement to sell from the other beneficiaries.  At the moment any sale would be an estate sale as i understand it.
our second option, which is to register the house in our (beneficiaries) names is a little more complicated, but that decision hasn’t yet been made.

As an aside, if the bathroom and kitchen are usable, there's no obvious damp and the roof hasn't fallen in, it's mortgageable. Those are the "musts". Certain other lenders would have things about non-standard construction, single skin walls, spray foam and so on, but having an "oldy-worldy" house makes no odds at all.

The rest is about appeal.

FreeBear

Ageingartist said: I have my father’s death certificate, the deeds, and epitome of title up to when my parents bought the house. I have my mother’s death certificate and grant of probate. The only other thing I think that I need is the written agreement to sell from the other beneficiaries.  At the moment any sale would be an estate sale as i understand it.
our second option, which is to register the house in our (beneficiaries) names is a little more complicated, but that decision hasn’t yet been made.

As the executor, you do not need the permission of the beneficiaries to sell the property (or any other asset). You do, however, have a duty to sell for the best price possible (within reason), and if a beneficiary wants to dispute, they can do so after the event.

Registering the house in the beneficiaries names will add a whole layer of complexity when the property is eventually sold - Should just one refuse to cooperate, you're left with the prospect of going to court to get an order to sell. An expensive proposition.