UK Property Law

Get UK Property Law Questions Answered by Experts

Ask an Expert,
Get an Answer ASAP!

UK Property Law
This answer was rated:

Hello, I wonder if you can advise me. My mum passed away

Hello, I wonder if you can...
Hello,

I wonder if you can advise me.

My mum passed away recently and in her will has left her estate to be divided equally between myself, my brother and my sister (my dad passed away over thirty years ago).

The estate basically consists of her house (on which there is no mortgage), the contents of the house (nothing of any value) and a few thousand pounds in the bank.

Basically I would like to buy my brother and sister's share of the house and they have agreed to this. I am getting a RICS approved home survey and valuation, and we will use this as a basis
for negotiating the price. However we have had a previous valuation from an estate agent and they indicated that the house is worth around 325K.

From discussion with the solicitor handling my mum's will, we should not need to be concerned about inheritance tax as the house would have passed to my mum when my dad died so would include my dad's inheritance tax allowance (just to clarify, they were married).

My brother is sorting out probate.

So really I just want to check that I have all the bases covered on the aspects of the sale and I am right in the following assumptions:

1. We would not need to be concerned about inheritance tax as mentioned above.

2. I would not need to pay any Capital Gains Tax (CGT) myself, but my brother and sister would if the value of the house went up between the time of my mothers death and the point at which I buy it.

3. I would need to pay stamp duty, but from what I have read am not clear if this is as a percentage of what I am paying to buy my brother and sister out, or if it is on the total value of the house (this would obviously make a difference as the former would likely be in the 1% stamp duty band, whilst the latter is in the 3% band).

I would use a solicitor to handle the transaction and deal with the necessary land registration etc.

Is there anything major I am missing on this ?

Many thanks,

Dave
Show More
Show Less
Ask Your Own UK Property Law Question
Answered in 1 minute by:
8/15/2013
Joshua
Joshua, Lawyer
Category: UK Property Law
Satisfied Customers: 26,070
Experience: LL.B (Hons), Higher Prof. Dip. Law & Practice
Verified

Joshua :

Thanks for your question. Please kindly RATE my answer when you are satisfied

Joshua :

Do you have an idea of the price you are prepared to pay please? I appreciate you are awaiting the RICS valuation.

Customer:

Hi Joshua, I would expect to pay my brother and sister around 105000 to 110000 each.

Joshua :

Thanks. I will try to deal with your questions using their original numbering in your question for clarity with your permission.

Customer:

thats fine thanks

Joshua :

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.

Customer:

ok thanks

Joshua :

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.

Customer:

ok thanks, XXXXX XXXXX thought we would just have to accept the valuation given by the survey

Joshua :

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.

Joshua :

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.

Joshua :

Is there anything above I can clarify for you?

Customer:

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

Customer:

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

Joshua :

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.

Joshua :

Is there anything above I can clarify for you any further?

Customer:

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 ?

Joshua :

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.

Joshua :

Does the above answer all your questions or is there anything I can clarify or help with any further?

Customer:

No I think thats about it - thanks for your help.

Joshua :

A pleasure. If I can assist any further as the situation develops please do no hesitate to let me know.

Customer:

thank you

Joshua :

If you have no further questions for now I should be very grateful if you would kindly take a moment to rate my service to you today. Your feedback is important to me. If there is anything else I can help with though please reply back to me though.

Joshua
Joshua, Lawyer
Category: UK Property Law
Satisfied Customers: 26,070
Experience: LL.B (Hons), Higher Prof. Dip. Law & Practice
Verified
Joshua and 87 other UK Property Law Specialists are ready to help you
Ask your own question now
Ask Joshua Your Own Question
Joshua
Joshua
Joshua, Lawyer
Category: UK Property Law
Satisfied Customers: 26,070
26,070 Satisfied Customers
Experience: LL.B (Hons), Higher Prof. Dip. Law & Practice

Joshua is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

A quick response, a succinct and helpful answer in simple English. I believe I can now confront the counter party with confidence -- worth the 30 bucks!

RickLeeds, UK

I did not know a French Law service existed and I was very impressed with the speed of reply --- very professional. Many thanks!

Ms. BakerAlfafar, Spain

Thank you so much for your help. Your answers were really useful and came back so quickly. Great!

MaggieUSA

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

I couldn't be more satisfied! This is the site I will always come to when I need a second opinion.

JustinKernersville, NC

< Previous | Next >

Meet the Experts:

Aston Lawyer

Aston Lawyer

Property Solicitor

1,736 satisfied customers

LLB(HONS) 23 years of experience in dealing with Conveyancing and Property Law

Thomas

Thomas

Lawyer

1,336 satisfied customers

BA (Hons), PgDip, Practising Solicitor

Clare

Clare

Solicitor

1,324 satisfied customers

25 years exeperience

INC

INC

Solicitor-Advocate

812 satisfied customers

LL.B, Pg.Dip, LL.M, M.B.A (Pending), Solicitor-Advocate. UK Practising Certificate issued by SRA., DIFC Courts Registered (Dubai)

Alex J.

Alex J.

Law

447 satisfied customers

LPC, 2 Years Conveyancing

Buachaill

Buachaill

Barrister

282 satisfied customers

Barrister 17 years experience

Matt J

Matt J

Solicitor

216 satisfied customers

LLB(HONS)

< Previous | Next >

Related UK Property Law Questions
L am a leasholeder in a property in London. For the past 16
Hi, l am a leasholeder in a property in London. For the past 16 years l have had exclusive use of a cabinet off the main hallway of the building in ehich l store some of my possessions. The cabinet do… read more
Thomas
Thomas
Lawyer
Bachelor's Degree
1,336 satisfied customers
I just need to kmow if there is any charges on my property.
I just need to kmow if there is any charges on my property. … read more
propertylawyer
propertylawyer
Llm
258 satisfied customers
Can an executor of a will rent out the deceased person's
Can an executor of a will rent out the deceased person's property before obtaining probate… read more
Clare
Clare
Solicitor
Bachelor's Degree
1,324 satisfied customers
Second opinion please have a question- would those on help
Second opinion please have a question- would those on help to buy scheme and Mortgage loan be able to do Airbnb Abdullah have a lodger? My neighbor is harassing me - he does not like the idea of traff… read more
ivorylounge
ivorylounge
38 satisfied customers
I have a question- would those on help to buy scheme and
Hi I have a question- would those on help to buy scheme and Mortgage loan be able to do Airbnb… read more
Michael Bradley
Michael Bradley
JD
1,192 satisfied customers
Myself and my girlfriend are having trouble with our
Hi, myself and my girlfriend are having trouble with our landlords who I would describe as 'Rogue Landlords'. My girlfriend has lived in the property for seven years and I moved in six years ago to be… read more
Jamie-Law
Jamie-Law
5,352 satisfied customers
We have a where we meet and hire out to the public much of
We have a hall where we meet and hire out to the public much of the time. There is an area of unregistered land at the back where both we and selected customers (usually the organiser &/or caterer) pa… read more
F E Smith
F E Smith
Bachelor\u0027s Degree
2,205 satisfied customers
I already have planning permission to build two houses in my
I already have planning permission to build two houses in my garden together with one house in my neighbours garden to make 3 houses. An amount has been verbally agreed with my neighbour for the value of their garden. I would now like them to enter into an Option Agreement with me prior to marketing the plot to developers. Would I be exposing myself to Capital Gains tax by entering into an Option Agreement with them? … read more
Damien Bosco
Damien Bosco
3,388 satisfied customers
A scheduled of leases in a property title Document lists 7
Hello A scheduled of leases in a property title Document lists 7 leases. 6 if the leases Have the words ‘part of, next to them, the 7th lease doesn't. Why is the 7th lease different and what does this… read more
Michael Holly
Michael Holly
Bachelor\u0027s Degree
6,666 satisfied customers
I am a leaseholder and installed a new boiler replacing old
I am a leaseholder and installed a new boiler replacing old gas fire with an electric fire and putting a new combi boiler in the kitchen and removing the large water tank in the storage cupboard - the… read more
Michael Holly
Michael Holly
Bachelor\u0027s Degree
6,666 satisfied customers
I own a studio flat and looking to sell, Ive renewed the
Hi I own a studio flat and looking to sell, Ive renewed the lease after a painful and costly dragged out court process.I have the property on the market and the freeholder has made a low offer for var… read more
F E Smith
F E Smith
Bachelor\u0027s Degree
2,205 satisfied customers
My mother passed away in September 2017. She left half her
Hi , my mother passed away in September 2017 . She left half her house to me in her will . My father is still alive and we are all currently living in the house . I am Exeter of the will . My question… read more
F E Smith
F E Smith
Bachelor\u0027s Degree
2,205 satisfied customers
I am currently looking at how to split property between me
Hello. I am currently looking at how to split property between me and my partner fairly. … read more
Clare
Clare
Solicitor
Bachelor's Degree
1,324 satisfied customers
Our builders have issued a court order and we need legal
Our builders have issued a court order and we need legal advice or solicitor to represent ourselves … read more
Jamie-Law
Jamie-Law
5,352 satisfied customers
My Daughter's Stepfather had a property company managed by
My Daughter's Stepfather had a property company managed by his son. 3/4 years ago the son sued his father for 1 million pounds that he said he was owed. A long court ensued which incredibly was won by… read more
frantzgregory
frantzgregory
673 satisfied customers
I am sole tenant on an HSBC mortgage and deeds to a new
I am sole tenant on an HSBC mortgage and deeds to a new purchase but would like my partner to have an equity share but without the mortgage liability. Can this be done this through a declaration of tr… read more
Buachaill
Buachaill
Barrister
Master's Degree
282 satisfied customers
I am a UK taxpayer. I plan to provide 150000 to a Brazilian
I am a UK taxpayer. I plan to provide £150000 to a Brazilian company for a small property development.The investment is repayable within 12 months at £150000 +20% or £150000+ 45% of the profit whichev… read more
Sarah G
Sarah G
Consultant tax lawyer
Master\u0027s Degree
36 satisfied customers
I currently have 1 property as a buy to let and a second property
I currently have 1 property as a buy to let and a second property with a standard mortgage. I am in a position to buy a third property and would like advice on what tax structurewould best suit these … read more
Andrew Baker(baktax)
Andrew Baker(baktax)
Self employed tax consultant
High School or GED
756 satisfied customers

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

Show MoreShow Less

Ask Your Question

x