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  • FIRST POST
    • Donury236
    • By Donury236 23rd Feb 18, 5:49 PM
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    Donury236
    Inheriting a house whilst jointly owning another?
    • #1
    • 23rd Feb 18, 5:49 PM
    Inheriting a house whilst jointly owning another? 23rd Feb 18 at 5:49 PM
    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.
Page 1
    • Keep pedalling
    • By Keep pedalling 23rd Feb 18, 6:08 PM
    • 5,004 Posts
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    Keep pedalling
    • #2
    • 23rd Feb 18, 6:08 PM
    • #2
    • 23rd Feb 18, 6:08 PM
    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.
    Last edited by Keep pedalling; 23-02-2018 at 6:31 PM.
    • Donury236
    • By Donury236 23rd Feb 18, 6:21 PM
    • 64 Posts
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    Donury236
    • #3
    • 23rd Feb 18, 6:21 PM
    • #3
    • 23rd Feb 18, 6:21 PM
    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
    • By Savvy_Sue 24th Feb 18, 1:55 AM
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    Savvy_Sue
    • #4
    • 24th Feb 18, 1:55 AM
    • #4
    • 24th Feb 18, 1:55 AM
    What does the will actually say about the house? What you're describing makes no sense ...
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    • buildersdaughter
    • By buildersdaughter 24th Feb 18, 8:15 AM
    • 163 Posts
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    buildersdaughter
    • #5
    • 24th Feb 18, 8:15 AM
    • #5
    • 24th Feb 18, 8:15 AM
    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
    • By getmore4less 24th Feb 18, 9:24 AM
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    getmore4less
    • #6
    • 24th Feb 18, 9:24 AM
    • #6
    • 24th Feb 18, 9:24 AM
    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.
    Originally posted by Donury236
    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
    • By Keep pedalling 24th Feb 18, 10:07 AM
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    Keep pedalling
    • #7
    • 24th Feb 18, 10:07 AM
    • #7
    • 24th Feb 18, 10:07 AM
    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
    • By nom de plume 24th Feb 18, 11:52 AM
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    nom de plume
    • #8
    • 24th Feb 18, 11:52 AM
    • #8
    • 24th Feb 18, 11:52 AM
    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
    • By Donury236 11th Mar 18, 2:29 AM
    • 64 Posts
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    Donury236
    • #9
    • 11th Mar 18, 2:29 AM
    • #9
    • 11th Mar 18, 2:29 AM
    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?
    Originally posted by nom de plume
    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
    • By Donury236 11th Mar 18, 2:30 AM
    • 64 Posts
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    Donury236
    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.
    Originally posted by Keep pedalling
    We do, though they will need to be altered after my dads estate is settled depending on what happens with the house.
    • Donury236
    • By Donury236 11th Mar 18, 2:31 AM
    • 64 Posts
    • 5 Thanks
    Donury236
    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.
    Originally posted by getmore4less
    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.
    • Donury236
    • By Donury236 11th Mar 18, 2:42 AM
    • 64 Posts
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    Donury236
    What does the will actually say about the house? What you're describing makes no sense ...
    Originally posted by Savvy_Sue
    That I have the option to buy the dwellinghouse.

    I direct my Executors to give my said daughter xxx, aforesaid, the option to buy the said dwellinghouse at XXX, aforesaid at the market value to be determined by a suitably qualified chartered surveyor appointed by my Executors, but only if the said xxx intimates her intention to buy the said dwellinghouse to my Executors within two months of the date of my death. Declaring that the net proceeds of Sale of the said property shall form part of the residue of my estate which is dealt with in Clause (FOUR) hereof.

    (FOUR) I direct m executors to pay and make over the whole residue and remainder of my Estate equally between my two daughters, namely the said xxx, aforesaid and xxxxxx, aforesaid;"

    I think that it could have been worded better, though its probably some legal way it had to be written. I am hoping a mortgage adviser or FA will be more help a they may have seen this situation before.
    Ideally I would take my 50% of my dads shares, pay off all debts, then when debt free remortgage current property (would be 74% LTV ) and pay the Scottish Executive their 20% stake so we no longer have another party involved and then get a mortgage on my dads house @ 50% LTV.

    Someone on another thread said that as my sister and I are beneficiaries AND executors that the timing is down to us, so we could do shares first then house. If my sister is up to not being awkward.
    • Yorkshireman99
    • By Yorkshireman99 11th Mar 18, 4:42 AM
    • 4,152 Posts
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    Yorkshireman99
    That I have the option to buy the dwellinghouse.

    I direct my Executors to give my said daughter xxx, aforesaid, the option to buy the said dwellinghouse at XXX, aforesaid at the market value to be determined by a suitably qualified chartered surveyor appointed by my Executors, but only if the said xxx intimates her intention to buy the said dwellinghouse to my Executors within two months of the date of my death. Declaring that the net proceeds of Sale of the said property shall form part of the residue of my estate which is dealt with in Clause (FOUR) hereof.

    (FOUR) I direct m executors to pay and make over the whole residue and remainder of my Estate equally between my two daughters, namely the said xxx, aforesaid and xxxxxx, aforesaid;"

    I think that it could have been worded better, though its probably some legal way it had to be written. I am hoping a mortgage adviser or FA will be more help a they may have seen this situation before.
    Ideally I would take my 50% of my dads shares, pay off all debts, then when debt free remortgage current property (would be 74% LTV ) and pay the Scottish Executive their 20% stake so we no longer have another party involved and then get a mortgage on my dads house @ 50% LTV.

    Someone on another thread said that as my sister and I are beneficiaries AND executors that the timing is down to us, so we could do shares first then house. If my sister is up to not being awkward.
    Originally posted by Donury236
    The same answer as on your other thread. You need to listen to, and act upon, what your solicitor said, or says. It seems you don!!!8217;t like the advice they have given and want a different answer which does not sound possible. Even so without all the details it it very hard to be sure.
    • getmore4less
    • By getmore4less 11th Mar 18, 9:36 AM
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    getmore4less
    That I have the option to buy the dwellinghouse.

    I direct my Executors to give my said daughter xxx, aforesaid, the option to buy the said dwellinghouse at XXX, aforesaid at the market value to be determined by a suitably qualified chartered surveyor appointed by my Executors, but only if the said xxx intimates her intention to buy the said dwellinghouse to my Executors within two months of the date of my death. Declaring that the net proceeds of Sale of the said property shall form part of the residue of my estate which is dealt with in Clause (FOUR) hereof.

    (FOUR) I direct m executors to pay and make over the whole residue and remainder of my Estate equally between my two daughters, namely the said xxx, aforesaid and xxxxxx, aforesaid;"

    I think that it could have been worded better, though its probably some legal way it had to be written. I am hoping a mortgage adviser or FA will be more help a they may have seen this situation before.
    Ideally I would take my 50% of my dads shares, pay off all debts, then when debt free remortgage current property (would be 74% LTV ) and pay the Scottish Executive their 20% stake so we no longer have another party involved and then get a mortgage on my dads house @ 50% LTV.

    Someone on another thread said that as my sister and I are beneficiaries AND executors that the timing is down to us, so we could do shares first then house. If my sister is up to not being awkward.
    Originally posted by Donury236
    That is fairly clear,

    The executors can't sell the house to anyone if you take up the option to buy, you have 2 months from DOD to make that choice.

    After the 2 months if you have not taken up the option the executors can get on with the job.

    if you take up the option there was no time limit imposed so nothing to stop you sorting out your situation.

    if the other beneficiary is happy to wait then I can't see any problem other than you sorting out your other complications and raising the cash.






    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.
    the solicitor is right if those two factors apply.

    There is nothing to stop the second(partner a joint owner), that probably helps resolves raising the cash.


    What about you just sell your current property then buy this one, should be noting stopping you moving into it is sis agrees.

    I don't know enough about LIFT but remortgaging, then selling seems a lot more work and time than just selling.
    • AnotherJoe
    • By AnotherJoe 11th Mar 18, 10:35 AM
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    AnotherJoe
    but only if the said xxx intimates her intention to buy the said dwellinghouse to my Executors within two months of the date of my death


    That clearly means beneficiary needs to intimate intention to buy within two months.

    "intimates her intention to buy to executors" eg she tells them.

    However, this has the downside / flaw that beneficiary might state intention to buy within two months and then does nothing about it leaving everyone in limbo.
    Last edited by AnotherJoe; 11-03-2018 at 10:37 AM.
    • Linton
    • By Linton 11th Mar 18, 4:49 PM
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    Linton
    Do you actually want the house? If the house hadnt been your father's but just one you happened to see on Rightmove would you want to go out and buy it? Why when you apparently cant afford it and already seem to have a house?

    Wouldnt it be best just to sell it, inherit the 50% and use that money for improving your and your childrens future?

    Apologies if I have missed something vital that makes your objectives more understandable.
    • Donury236
    • By Donury236 29th Mar 18, 5:43 PM
    • 64 Posts
    • 5 Thanks
    Donury236
    Do you actually want the house? If the house hadnt been your father's but just one you happened to see on Rightmove would you want to go out and buy it? Why when you apparently cant afford it and already seem to have a house?

    Wouldnt it be best just to sell it, inherit the 50% and use that money for improving your and your childrens future?

    Apologies if I have missed something vital that makes your objectives more understandable.
    Originally posted by Linton
    Yes we do as we would never be able to afford anything else similr on the market right now, as it needs work so is a lower valuation.
    The house we are in right now is a 3 bed (1 rooms a small single) mid terrace right on the street, no garden in a small rural village.
    My dads house is a 3/4 bed in 2.4 acres of land (field and garden)with stables down a private road in a large village closer to the largest local town. It would make it easier for me to get another job as wont have as many issues re childcare and commuting - it would more than half a commute by time and distance.

    We were only there 23 years, so it isnt exactly my childhood home - that one I plan to by back if I win the lottery!
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