Assent needed?

Digs1975

Hello. Would appreciate some advice please...

Situation: mother died intestate, owned house (no mortgage outstanding). I want to purchase siblings half of the property.

Do we need to assent the property into our names first and then again to transfer into my name?

Is a separate solicitor/conveyancer required for me purchasing siblings half and another solicitor/conveyancer for the sale of the property? does my sibling need a solicitor at all?

What charges for solicitor or assent should come from the Estate, or should the costs be covered by me/sibling?

poseidon1

From your previous post there was very little in the estate other than house so you have no option other than a formal purchase of your sister's defacto half share in the property ( no possibilty of an internal offset against cash in the estate).

Property currently in your mother's name, so yes this does appear to be an intial assent by yourselves as executors vesting beneficial ownership into joint names. Thereafter a formal contract of sale by which you then agree to buy out your sister.

I recall a property value of around £300k which suggests an SDLT charge on a value exceeding the £125k threshold together with the 5% 2nd property surcharge if you are already a home owner. You could be looking at a total £8,000 SDLT charge on a £150k purchase. However the 5% surcharge potentially recoverable if you subsequently move in to your mother's home after selling your own within 3 years.

I would suggest you appoint a solicitor to handle all aspects commencing with assent, contract of sale, SDLT compliance, culminating in conveyance of legal title to your sole name. I see no reason why solicitor cannot act for both parties, your joint interests in the property are aligned and I see no conflict of interest.

Your sister will be making a reportable CGT disposal for which an online CGT return will be required within 60 days of completion. There is unlikely any gain arising since date of death, but if your sister feels unable to handle the reporting process, could ask the solicitor if they can do so and include in the fees quote.

The CGT reporting process below.

https://www.gov.uk/report-and-pay-your-capital-gains-tax/if-you-sold-a-property-in-the-uk-on-or-after-6-april-2020

Alternatively you could consider bypassing the assent process, and you buy the 50% share direct from the unadministered estate with your sister recieving her share from the estate rather than direct from you. CGT reporting therefore at estate level rather than by your sister. Worth discussing with solicitor which option would be the most cost effective.

Digs1975

Thank you posiedon1.

Correct that the estate is basically the property itself. Looking back I do believe we over estimated the value of the property for the probate application, looking at houses that have sold the value is more than likely to be at least 30k less.

Thank you for the heads up about the capital gains tax being reportable.

I will look at finding a solicitor that could do everything, my sibling was under the impression that assent could be done without solicitor involvement.

The alternative way you mention is interesting.

poseidon1

https://forums.moneysavingexpert.com/discussion/comment/82068001#Comment_82068001

Since IHT was not an issue here, you are not necessarily stuck with your original probate estimate. In any event sounds like there will a sale at a loss relative to probate.

Even if purchase is nearer £135k figure rather than £150k, SDLT remains an issue.