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Joshua
Joshua, Lawyer
Category: Law
Satisfied Customers: 25424
Experience:  LL.B (Hons), Higher Prof. Dip. Law & Practice
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Hi re my mothers flat. My twin sister and I have agreed

Resolved Question:

Hi re my mother's flat. My twin sister and I have agreed a price to sell our interest in the flat to our younger sister who is an executor and a beneficiary. The property was not offered for sale on the open market. She has instructed a solicitor to proceed with the sale of her property and the purchase of our mother's flat but her solicitor has not been in contact with us yet. We obtained Grant of Probate without using a solicitor so have not had any advice about how to sell our two thirds share in the flat. What should we be aware of ? What are the implications of transferring the property into our sister's name by way of Assent or a Deed of Family arrangement rather than a straight sale.
Submitted: 3 years ago.
Category: Law
Expert:  Joshua replied 3 years ago.

Joshua :

Hello and thank you for your question. I will be very pleased to assist you. I'm a practicing lawyer in England with over 10 years experience.

Joshua :

May I ask if you are also executors please or is it just your younger sister that is executor?

Customer:

I am a joint executor with my younger sister. My twin sister is a beneficiary. So all 3 of us are the main beneficiaries

Joshua :

Thank you. Do you know if your younger sister will require a mortgage?

Customer:

No, she is down sizing from a larger property

Joshua :

Thank you. Finally does your sister require a solicitor to formally investigate the title as would be the case for buying a strangers property or is she happy to just proceed without such investigation to your knowledge?

Customer:

I don't know. We have found my mother's lease and all documents from her purchase of the flat about 8 years ago. My younger sister also lives in the same road as my mother.

Joshua :

Thanks. From your perspective it does not make any practical difference whether you transfer the property by way of a Assent, Transfer or a Deed of Arrangement (Deed of Variation). Providing you ensure that the estate receives payment from your younger sister and all beneficiaries are agreeable to the amount agreed, then this is all that maters. If your mother passed away more than 18 months ago you may wish to confirm that the property has not increased in value by more than £10900 otherwise you may wish to look at the CGT position but otherwise it is of little consequence

Joshua :

Your sister may or may not wish to investigate the title formally before she pays money but this is a matter for her.

Joshua :

If you are impatient to complete the deal you and your twin sister may wish to give notice to your sister that the matter must be completed by date x failing which you will need to reconsider the offer.

Joshua :

Is there anything above I can clarify for you?

Customer:

My mother died in July 2013 and the probate valuation of the flat was £330K. The same estate agent / surveyor who made that valuation is now valuing the flat at £390K for the sale to my younger sister.

Customer:

Is there any conflict of interest with my sister being an executor and buying the property without it going on the open market ?

Joshua :

Thanks. In that case you may wish to look at a CG35 procedure after the sale has been completed to uplift the value of the property to the sale price so you do not pay CGT on the difference between the probate valuation and the sale price. A solicitor or accountant can assist you with this straightforward procedure or I can if you wish for a separate fee.

Customer:

That's great. You have answered all my queries. I will check with my twin sister re the CG35 procedure and get back to you. Many thanks.

Joshua :

A pleasure - sorry a typo above - it is CG34 not 35.

Joshua :

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

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.

Customer:

Will do, many thanks.

Joshua :

Best wishes

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