Selling Inherited Property

Slowplod

FIL left his half of house to my husband when he died in 2018. MIL left her half to him when she died in 2024. The house was held tenants in common and was left outright, not through a life interest when FIL died. The house has never been registered with Land Registry as they had lived there since it was built in the 60’s.  When FIL died the solicitor took the deeds/death certificate and probate cert and kept them together but said husband now owned half the house.  She never suggested registering the house in both names.  I think she was protecting MIL in case we tried to force her to sell the house so husband could get his share.  

Am I right in thinking that:

1. We add the 2 probate house values together to get the value to use for the CGT calculation when we sell the house?
2. As husband’s name is not on deeds and it's not registered with Land Registry it is being sold from the estate from both parents so there is just one £3,000 CGT allowance?
3. As MIL died in February 2024 we have to sell the house before the end of financial year 2025-26 otherwise we will lose the £3,000 CGT allowance?
4. If we sell to a close relative do we need to get a Red Book Valuation done before the sale to prove the actual value of the house in its current condition?  It needs replastering after the rewire and possibly the roof and windows replacing so would be less than other houses currently on the market on the same estate.
5. If so can the cost of the valuation be claimed against any price rise as well as solicitor fees?
6. Can the cost of rewiring the house be claimed against any price rise?

Thanks for any advice, I just want to make sure I understand the correct process before we start the process and contact a solicitor.

Land_Registry

Slowplod said:

FIL left his half of house to my husband when he died in 2018. MIL left her half to him when she died in 2024. The house was held tenants in common and was left outright, not through a life interest when FIL died. The house has never been registered with Land Registry as they had lived there since it was built in the 60’s.  When FIL died the solicitor took the deeds/death certificate and probate cert and kept them together but said husband now owned half the house.  She never suggested registering the house in both names.  I think she was protecting MIL in case we tried to force her to sell the house so husband could get his share.  

Am I right in thinking that:

1. We add the 2 probate house values together to get the value to use for the CGT calculation when we sell the house?
2. As husband’s name is not on deeds and it's not registered with Land Registry it is being sold from the estate from both parents so there is just one £3,000 CGT allowance?
3. As MIL died in February 2024 we have to sell the house before the end of financial year 2025-26 otherwise we will lose the £3,000 CGT allowance?
4. If we sell to a close relative do we need to get a Red Book Valuation done before the sale to prove the actual value of the house in its current condition?  It needs replastering after the rewire and possibly the roof and windows replacing so would be less than other houses currently on the market on the same estate.
5. If so can the cost of the valuation be claimed against any price rise as well as solicitor fees?
6. Can the cost of rewiring the house be claimed against any price rise?

Thanks for any advice, I just want to make sure I understand the correct process before we start the process and contact a solicitor.

I can't offer advice on the Qs you have listed and those would be for others to respond to and apologies if the following is something you are already aware of - just wanted to share as others may signpost HMLR in their replies

It's important to consider the two separate issues here re inheritance and legal ownership. It reads as if your husband has inherited both half shares from FIL and MIL. People can inherit in this way and some families do nothing more be the property registered or not.
However the actual legal ownership remains as part of MIL's estate until her executor deals with the property. And in this scenario her executor would transfer (assent) the property to your husband and in turn this would trigger the need to compulsorily register it for the first time based on that Assent plus original deeds/docs as appropriate 
Probate is required for MIL and death certificate for FIL to confirm both deaths and how MIL's executor is the one able to now deal with the property (her estate)
The TIC aspect you refer to does not alter the above as that relates to the beneficial ownership/shares created by their wills 

If the property is to be sold then it is possible for the executor to do that but you may find that a buyer, or more importantly any mortgage lender involved, will refuse to do so and ask that the executor transfers the legal ownership and registers the property first

Slowplod

Thanks Land Registry for your advice.  Yes husband has inherited both halves of the house now.  Husband and myself are both executors of MIL's estate and we have probate for both of them.  Once we know whether our son wants to buy the house he'll have to speak to the mortgage advisor to see if this will affect the mortgage offers available and make a decision then whether we need to register in husbands name before the sale can take place. Thanks