Shared ownership of unregistered property

Newly_retired

A relative has died, leaving their small share of an unnregistered property. A younger relative who lives in the property, paying rent to the major shareholder, is going to receive the family's share as her inheritance. He solicitor has told her that only the major shareholder can register the property. How do we get the change of ownership formalised - and close the estate?

SDLT_Geek

Newly_retired said:

A relative has died, leaving their small share of an unnregistered property. A younger relative who lives in the property, paying rent to the major shareholder, is going to receive the family's share as her inheritance. He solicitor has told her that only the major shareholder can register the property. How do we get the change of ownership formalised - and close the estate?

It might be relevant to know what country the property is in, is it in England?

Also, what type of "shared ownership" is it?  Is it a shared ownership with a social landlord?  Or perhaps it was more a case of two people having bought (or perhaps inherited) a property together in unequal shares?

Newly_retired

The property is in England.
The shared owner is a private housing trust for former employees. The property was purchased as a new build on a tenants-in-common basis.

SDLT_Geek

Newly_retired said:

The property is in England.
The shared owner is a private housing trust for former employees. The property was purchased as a new build on a tenants-in-common basis.

The position with an unregistered property is similar to a registered property when it comes to tenants in common and death.  These points might help:

1.  The legal title (which governs who could register the property or sell it) can only be held as "joint tenants".  That means that on the death of one of joint owners, the legal title passes automatically by survivorship to the other. 

2.  Therefore it is correct to say that only the surviving owner (the trust) could register ownership of the property with the Land Registry.

3.  But the underlying beneficial ownership is different.  On the death of an owner who has a share under a tenancy in common, the beneficial share will pass according to the laws of inheritance, which depends on whether there is a Will or not.

4.  The personal representatives of the deceased (whether executors or administrators) could assent the beneficial share in favour of the beneficiary entitled as part of the administration of the estate.

FreeBear

Newly_retired said:

The property is in England.
The shared owner is a private housing trust for former employees. The property was purchased as a new build on a tenants-in-common basis.

When was the property built and the original share sold ?

Compulsory registration* was introduced way back in 1925 for Eastbourne. Subsequent years saw other parts of the country being "enrolled", and by 1990, all of England and Wales became subject to compulsory registration*.

*) Compulsory registration is triggered by a number of events including change ownership or mortgage.

Newly_retired

The property was built/ purchased just before registration became mandatory. It has not changed hands, apart from the death of the owner of the smaller share, but this share has remained in the family and will continue to do so. Following the death of the owner’s son ( for whom I am an executor) it has now been agreed by all the beneficiaries that the younger relative who still lives there will inherit the part-ownership. 
I think that covers SDLT_Geek’s first 3 points above. 

Please could you clarify point 4 above?  The younger relative is the remaining executor of the original owner’s estate. How do they assent the property to themselves?

SDLT_Geek

Newly_retired said:

The property was built/ purchased just before registration became mandatory. It has not changed hands, apart from the death of the owner of the smaller share, but this share has remained in the family and will continue to do so. Following the death of the owner’s son ( for whom I am an executor) it has now been agreed by all the beneficiaries that the younger relative who still lives there will inherit the part-ownership. 
I think that covers SDLT_Geek’s first 3 points above. 

Please could you clarify point 4 above?  The younger relative is the remaining executor of the original owner’s estate. How do they assent the property to themselves?

A straightforward assent document should do the trick, an executor can assent a beneficial interest in a property to himself.

Newly_retired

Thank you.