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Do you have an idea of the price you are prepared to pay please? I appreciate you are awaiting the RICS valuation.
Hi Joshua, I would expect to pay my brother and sister around 105000 to 110000 each.
Thanks. I will try to deal with your questions using their original numbering in your question for clarity with your permission.
thats fine thanks
1. Based on the figures you quote on the basis your father left everything to your mother or near enough there should be no IHT to pay.
2. CGT is chargeable on the difference between the probate valuation used for the property and the price it sells for (or you buy out your siblings shares). If probate has not yet been applied for if you have plenty of unused IHT allowance then consider using a higher valuation for probate purposes in order that this is not an issue. If you agree a higher figure than the probate valuation shortly after your mothers passing you can consider using the CG35 procedure to revalue the property for the purposes of CGT so none is payable.
ok thanks, XXXXX XXXXX thought we would just have to accept the valuation given by the survey
3. You will have to pay stamp duty on the price you agree for the property less the share you already own under the will. Ideally therefore try if you can to pay no more than £250K altogether for the other shares to keep duty to 1% of that value.
When negotiating a price consider factoring in that your siblings will be avoiding estate agents fees and more significant legal fees on selling to a third party and further monies if the sale is to be quick so they get their money without delay. This may enable you to leverage a discount as although they are siblings you are entitled to negotiate on a commercial basis.
Is there anything above I can clarify for you?
Thanks. I am making an assumption here, but I have a good relationship with my siblings and if the RICS valuation came back at say 325000 I would imgaine that they would be happy with say me paying them around 105000 - 108000 each
That is very helpful, but I just wanted to check that there aren't any major items in terms of cost/tax etc that I might have overlooked
On that assumption given the above points I would suggest that the lower end rather than the upper end might be justified. Remember one also rarely gets the asking price when marketing through an agent. Ultimately as long as you are happy with the price you are paying that is all that matters.
Is there anything above I can clarify for you any further?
Just one other question if thats ok - can I just use one solicitor to manage the whole transaction or should we have one representing my brother and sister as sellers and one representing me as buyer ?
Providing all of you are happy to use one solicitor then because you are all family you can if the solicitor is happy that there is no conflict of interest. However it is up to the solicitor whether to accept instructions on that basis. Since our regulator changed the solicitors code of conduct it has made it much more vague as to when a solicitor can so act and not. Providing the solicitor is prepared to act on that basis that is fine.
Does the above answer all your questions or is there anything I can clarify or help with any further?
No I think thats about it - thanks for your help.
A pleasure. If I can assist any further as the situation develops please do no hesitate to let me know.
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