Inheriting a house whilst jointly owning another?

Donury236 · 23 February 2018 at 6:49PM

So I have a situation and wondered if anyone had been in similar situation.

I am not married, I own a house jointly with my partner of nearly 10 years.
We bought via the LIFT scheme, so we have hoops to jump through to sell, but we plan to.
I am inheriting 50% of my fathers estate, and have first refusal on getting the house and paying my sister 50%.
The issue arises that I am currently a stay at home mum - I was not when we bought current main residence so I am on the deeds and mortgage.
My dad did not want my partner on the deeds of the house I inherit - but I cannot pay my sister her % without getting a mortgage.

Even the solicitor was a bit stumped and said that if I personally cannot get a mortgage, and OH cannot go on the deeds (it is not written anywhere in the will that my partner cannot be on the deeds, just it is left to me) then it has to be sold.

They then also mentioned the ADS and stated there may be a charge relating to that - though I cannot find any examples which involve a house inherited after a house purchase and not before.

Keep_pedalling · 23 February 2018 at 7:08PM

Your sister can sell her half of her house to whoever she wishes, your father cannot control onward ownership beyond the grave, so I cannot see a problem really.

Donury236 · 23 February 2018 at 7:21PM

The issue it seems that it will not transfer to my sister and I, just to me so she will never be on the deeds. I did mention to them that surely that is what would happen, but seems not. I also assumed that the house would pass to me before I could get a mortgage to pay my sister her share, and so I could add my partner on to the deeds but they poo pood that as well.

Savvy_Sue · 24 February 2018 at 2:55AM

What does the will actually say about the house? What you're describing makes no sense ...

buildersdaughter · 24 February 2018 at 9:15AM

Without doubt you need careful legal advice - but could your sister sell her half to your partner? Once that it done, you can then sort out Land Registry and being tenants in common etc .if you wish.
I see that she only inherits half the estate, but that must include half of the value of the house. Also, could you move in temporarily, with your OH 'renting' her half? That would give you chance to sort out your 2 housing steps separately.

getmore4less · 24 February 2018 at 10:24AM

Donury236 wrote: »

The issue it seems that it will not transfer to my sister and I, just to me so she will never be on the deeds. I did mention to them that surely that is what would happen, but seems not. I also assumed that the house would pass to me before I could get a mortgage to pay my sister her share, and so I could add my partner on to the deeds but they poo pood that as well.

That's not normally how it works, you need to raise the cash first.

You buy off the estate,

use your inheritance as your deposit and raising the funds to buy the rest by whatever means you can.

Keep_pedalling · 24 February 2018 at 11:07AM

As a separate issue issue, as a property owning unmarried couple with children do you have your own wills in place? If not that is something you really need to do.

nom_de_plume · 24 February 2018 at 12:52PM

Something else to consider is the increased SDLT due to a second home. I believe you would have to pay it and at the higher rate on the 50% purchased from your sister.

Are there any other assets to be distributed such as savings, etc?

Donury236 · 11 March 2018 at 3:29AM

nom_de_plume wrote: »

Something else to consider is the increased SDLT due to a second home. I believe you would have to pay it and at the higher rate on the 50% purchased from your sister.

Are there any other assets to be distributed such as savings, etc?

We are in Scotland so no LLBT to pay on inherited properties, however if I was to keep current house and mortgage the one I inherit it is a transaction that is I believe liable to the Additional Dwelling Supplement, I am still awaiting the solicitor to confirm this exactly, as if it is it is taken from the value of the 50% which given house price index based on the 2008 value makes the transaction under 150k. It seems its the transaction amount, not just the property value, though I got my head baked reading though the Scot gov info on it. .

Donury236 · 11 March 2018 at 3:30AM

Keep_pedalling wrote: »

As a separate issue issue, as a property owning unmarried couple with children do you have your own wills in place? If not that is something you really need to do.

We do, though they will need to be altered after my dads estate is settled depending on what happens with the house.

Donury236 · 11 March 2018 at 3:31AM

getmore4less wrote: »

That's not normally how it works, you need to raise the cash first.

You buy off the estate,

use your inheritance as your deposit and raising the funds to buy the rest by whatever means you can.

As in the fact I will have the house as the deposit? Thats what I was sort of banking on as I will only need a 50% mortgage.

Inheriting a house whilst jointly owning another?

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