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  • FIRST POST
    • kelloggs36
    • By kelloggs36 13th Oct 18, 1:52 PM
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    kelloggs36
    Inherited house
    • #1
    • 13th Oct 18, 1:52 PM
    Inherited house 13th Oct 18 at 1:52 PM
    How does my sister go about buying me out of the house we have both inherited? Do we have to register the house in our names first? Does this involve a fee? We have probate already.
Page 1
    • Keep pedalling
    • By Keep pedalling 13th Oct 18, 4:14 PM
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    Keep pedalling
    • #2
    • 13th Oct 18, 4:14 PM
    • #2
    • 13th Oct 18, 4:14 PM
    You do not need to transfer into both names first. You will have valued the house for probate, so it is simply a matter of her giving you the money, and getting the property signed over to her.

    It can be done without a solicitor, you just need to complete the appropriate forms with the land registry, for which a small fee is required .
    • getmore4less
    • By getmore4less 13th Oct 18, 4:29 PM
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    getmore4less
    • #3
    • 13th Oct 18, 4:29 PM
    • #3
    • 13th Oct 18, 4:29 PM
    Do she need a mortgage?

    Can be easier to buy off the estate like a normal purchase if you do.
    • kelloggs36
    • By kelloggs36 13th Oct 18, 4:49 PM
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    kelloggs36
    • #4
    • 13th Oct 18, 4:49 PM
    • #4
    • 13th Oct 18, 4:49 PM
    She will need a mortgage so that is why I was wondering whether the process would be the same as it is if she were buying a whole house from scratch.
    • kelloggs36
    • By kelloggs36 13th Oct 18, 4:51 PM
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    kelloggs36
    • #5
    • 13th Oct 18, 4:51 PM
    • #5
    • 13th Oct 18, 4:51 PM
    Hiw is it different?
    • Yorkshireman99
    • By Yorkshireman99 13th Oct 18, 5:25 PM
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    Yorkshireman99
    • #6
    • 13th Oct 18, 5:25 PM
    • #6
    • 13th Oct 18, 5:25 PM
    Hiw is it different?
    Originally posted by kelloggs36
    Not really different at all. She will need a solicitor as the lender wil probably insist. A valuation will be required along with all the other things when buying a house. The fees will be much the same.
    • kelloggs36
    • By kelloggs36 13th Oct 18, 5:33 PM
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    kelloggs36
    • #7
    • 13th Oct 18, 5:33 PM
    • #7
    • 13th Oct 18, 5:33 PM
    The legal title is currently still in my mum's name. We are both execitors. If tje house belongs to nobody at present who does she pay? Is it the executors of tje estate? I want to do it as simply as possible so if I don't have to transfer ownership into our names I would rathe not...too many forms!
    • getmore4less
    • By getmore4less 13th Oct 18, 5:59 PM
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    getmore4less
    • #8
    • 13th Oct 18, 5:59 PM
    • #8
    • 13th Oct 18, 5:59 PM
    They will need a solicitor to deal with the mortgage and convayancing

    They will want things like searches and valuations.

    Are they engaging a broker for the mortgage?

    Between them they should sort it out.

    It is just like buying a house.

    She pays full price to the estate.
    The estate pays out the money to the beneficiaries.
    (in practice this is a paper exercise for the estate accounts and she just pays you your share probably via the solicitor)

    There can be issues if you assent first then try to get a mortgage.
    (look up 6 month rule).
    • nom de plume
    • By nom de plume 13th Oct 18, 8:09 PM
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    nom de plume
    • #9
    • 13th Oct 18, 8:09 PM
    • #9
    • 13th Oct 18, 8:09 PM
    Does this involve a fee?
    Originally posted by kelloggs36
    Depending upon the value of the 50% share, SDLT (stamp duty) may be due.

    https://www.tax.service.gov.uk/calculate-stamp-duty-land-tax/#/intro

    https://www.theguardian.com/money/2018/mar/12/stamp-duty-share-property-inherited-sdlt
    • kelloggs36
    • By kelloggs36 14th Oct 18, 1:21 AM
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    kelloggs36
    She is a first time buyer so luckily is exempt from stamp duty.
    • kelloggs36
    • By kelloggs36 14th Oct 18, 1:22 AM
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    kelloggs36
    They will need a solicitor to deal with the mortgage and convayancing

    They will want things like searches and valuations.

    Are they engaging a broker for the mortgage?

    Between them they should sort it out.

    It is just like buying a house.

    She pays full price to the estate.
    The estate pays out the money to the beneficiaries.
    (in practice this is a paper exercise for the estate accounts and she just pays you your share probably via the solicitor)

    There can be issues if you assent first then try to get a mortgage.
    (look up 6 month rule).
    Originally posted by getmore4less
    I had jeard something about this. Does it not apply if she biys the house off estate then?
    • Keep pedalling
    • By Keep pedalling 14th Oct 18, 9:17 AM
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    Keep pedalling
    What is the house worth, and what is the value of the other assets?
    • kelloggs36
    • By kelloggs36 14th Oct 18, 11:49 AM
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    kelloggs36
    What is the house worth, and what is the value of the other assets?
    Originally posted by Keep pedalling
    The total value of the estate is 440k which includes the property at 325k. We completed a iht217 to claim my dad's unused mol rate allowance so we had am inheritence tax free allowance of 650k. The estate is well below this. We have paid the other beneficiaries as per the terms of the will ie the grandchilsren. My sister and I are the only other beneficiaries and we are also joint executors. Ot is only the house that is left to deal eith. She and her family are living there already as they had moced in with mum a few months ago whilst they boufgt thwor own house as ftv. Unfortunately her lender has now decided to demand an extra 12 k deposit for the gouse they were buying which she does mot have as she has paid all of the money she had from my mum as the deposit. She has now decided to withdraw from that house purchase and purchase mum's house at the market valuation given by 3 estate agents which O am very happy about. The question is really about how to do thia the best way. Some research suggests registering the house in our names first but this could cause issues with lenders wanting jer to have been part owner for 6 months before lending. This delays releasing the funds to me whilst she lices mortfage and rent free in the house for 6 months. I would not charge rent at all but really would like this sorted quickly. If we do not re register the house in our names would that be bettwr as she would just be buying the house and paying 187500 which would then go to the executors and then we pay me.
    • Yorkshireman99
    • By Yorkshireman99 14th Oct 18, 1:29 PM
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    Yorkshireman99
    The total value of the estate is 440k which includes the property at 325k. We completed a iht217 to claim my dad's unused mol rate allowance so we had am inheritence tax free allowance of 650k. The estate is well below this. We have paid the other beneficiaries as per the terms of the will ie the grandchilsren. My sister and I are the only other beneficiaries and we are also joint executors. Ot is only the house that is left to deal eith. She and her family are living there already as they had moced in with mum a few months ago whilst they boufgt thwor own house as ftv. Unfortunately her lender has now decided to demand an extra 12 k deposit for the gouse they were buying which she does mot have as she has paid all of the money she had from my mum as the deposit. She has now decided to withdraw from that house purchase and purchase mum's house at the market valuation given by 3 estate agents which O am very happy about. The question is really about how to do thia the best way. Some research suggests registering the house in our names first but this could cause issues with lenders wanting jer to have been part owner for 6 months before lending. This delays releasing the funds to me whilst she lices mortfage and rent free in the house for 6 months. I would not charge rent at all but really would like this sorted quickly. If we do not re register the house in our names would that be bettwr as she would just be buying the house and paying 187500 which would then go to the executors and then we pay me.
    Originally posted by kelloggs36
    You have had much good advice on here but only now is a fuller story emerging. You both need to get paid for professional advice by someone who you can tell all the fine detail to.. That way you will both get the best outcome. It is all too important to rely on the advice from here good as it may be. A few hundred pounds will put you minds at rest and ensure every angle is covered.
    Last edited by Yorkshireman99; 14-10-2018 at 8:50 PM.
    • getmore4less
    • By getmore4less 14th Oct 18, 8:23 PM
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    getmore4less
    A decent sized practice will have conveyancing and STEP solicitors to guide the process.

    Sis will need a solicitor(the one they are using may be OK) anyway.

    People buy houses off estates quite a lot this won't be anything unusual.
    • kelloggs36
    • By kelloggs36 14th Oct 18, 10:10 PM
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    kelloggs36
    What is a STEP solicitor?
    • Yorkshireman99
    • By Yorkshireman99 14th Oct 18, 10:15 PM
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    Yorkshireman99
    What is a STEP solicitor?
    Originally posted by kelloggs36
    STEP is a qualification for solicitors with particular reference to trusts and wills., Probably not needed in your case but any STEP qualified solicitor will really know his job.
    • Tom99
    • By Tom99 14th Oct 18, 11:41 PM
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    Tom99
    STEP is a qualification for solicitors with particular reference to trusts and wills., Probably not needed in your case but any STEP qualified solicitor will really know his job.
    Originally posted by Yorkshireman99

    You can find more details and a list of members here:
    https://www.step.org/member-directory
    • Yorkshireman99
    • By Yorkshireman99 15th Oct 18, 3:01 AM
    • 4,625 Posts
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    Yorkshireman99
    STEP is a qualification for solicitors with particular reference to trusts and wills., Probably not needed in your case but any STEP qualified solicitor will really know his job.
    Originally posted by Yorkshireman99
    Note for OP. You don’t need the expense of a specialist STEP member for a simple transaction like yours.
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