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Joshua
Joshua, Lawyer
Category: Law
Satisfied Customers: 31619
Experience:  LL.B (Hons), Higher Prof. Dip. Law & Practice
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I have a question regarding inheritance of the property, uk,

Customer Question

hello i have a question regarding inheritance of the property
JA: Where are you? It matters because laws vary by location.
Customer: uk, hampshire
JA: What steps have you taken so far?
Customer: I have only researched about it. i went to mortgage broker they directed me to the property lawyer and property lawyer said i need solicitors. I just feel like im going in a circle.
JA: Is there anything else the Lawyer should know before I connect you? Rest assured that they'll be able to help you.
Customer: Well i already own a property, which at the moment is BTL. the house im planning to inherit is my family property and once inherit im planning to live in this house
Submitted: 10 days ago.
Category: Law
Expert:  Joshua replied 10 days ago.

Hello and thank you for your question. My name is ***** ***** I will be very pleased to assist you. I'm a practising lawyer in England with over 15 years’ experience. Please be aware that although I will endeavour to reply to you promptly, I am also in full time private practice and so I may not be available to respond immediately and it may also take me a few minutes to prepare a reply. The site will notify you as soon as I respond. I look forward to working with you to answer your question fully.

Expert:  Joshua replied 10 days ago.

how may I assist in relation to the above please? Are there some specific questions you would like to raise in relation to the above circumstances?

Customer: replied 10 days ago.
Well i want to know the process.
Customer: replied 10 days ago.
also what is better to do. transfer of equity or inherit the property ?
Expert:  Joshua replied 10 days ago.

thank you. From what you describe, you already own a buy to let property and that will remain as it is irrespective of your inheritance.

  1. from what you describe, you are now inheriting a property. Are you being required to pay anything , for example if you were buying out another beneficiary's share in that property or is the property just left to you?
  2. is it the process of how you actually inherit the property that you want to clarify?

Customer: replied 10 days ago.
the property i own was residential property where i used to live. but due to circumstances i had to move in with my family and had to ask for BTL consent from bank.
And my family are alive and wants to give the house to me right now while they are alive. so i want to know the process of how to do it
Expert:  Joshua replied 10 days ago.

  1. thank you. Has your existing lender converted your mortgage into a buy to let mortgage or is that still outstanding?
  2. is there any mortgage on the property that your family is proposing to give to you presently?
  3. Will your family continue to live in the property if in deed they already do so?

Customer: replied 10 days ago.
1. I hve got the BTL consent for now. will be changing to BTL mortgage during remortgaging in roughly a year time.
2. yes roughly 180k mortgage
3. yes they will continue to live in the property
Expert:  Joshua replied 10 days ago.
  1. thank you. So as part of the gift, this will also involve you paying off the mortgage for them?
  2. if so, is that feasible for you based on your financial circumstances and status?
  3. Will your family expect any legal right to continue to live in the property or would this be on trust that you will allow them to continue to do so?
Customer: replied 10 days ago.
1. yes i will b paying off the remaining mortgage on the house.
2. yes, my salary will cover the mortgage
3. it will be on trust
Expert:  Joshua replied 10 days ago.

thank you. Essentially the process you describe above amounts to a transfer of equity and remortgage and you would need to consider is your first step approaching a mortgage broker if you have not  already done so in order to secure mortgage financing for the repayment of the existing mortgage on your family's property and having secured a product you are satisfied with in this regard, you would then need to approach a property conveyancing solicitor to act for you both in connection with the remortgage itself and transfer of equity into your name.

As part of the process, because your family intend to continue to live in the property, it is all but certain they would be required to sign something known as a deed of postponement which is a document agreeing with your new lender that they waive any rights in relation to the property. The purpose of this is to ensure that the lender can repossess the property in the event that payments are not kept up to date

Customer: replied 10 days ago.
do i need to pay the stamp duty while doing this ?
Expert:  Joshua replied 10 days ago.

SDLT will be assessed in the transaction though whether it will be payable will depend upon the figures involved.

SDLT will be assessed on the assumption of any mortgage debt together with any amount you pay to your family which I believe I am writing saying would be nothing. Accordingly, if the existing mortgage is £180,000, then SDLT would be assessed on that figure and given you in another property, you would also be liable to pay the 3% surcharge mean the SDLT would be assessed at £6500.

Customer: replied 10 days ago.
o ok thank you for this information
Customer: replied 10 days ago.
IT WAS VERU HELPFUL
Expert:  Joshua replied 10 days ago.

I'm glad the above answers all your questions for now. If you have any follow up questions please revert to me.

Expert:  Joshua replied 9 days ago.

I hope I was able to answer your question. If you would like to ask me another question in the future, you can add me as a favourite Expert. You'll have the option to do that on your "My Questions" page if you choose to rate our interaction or you can request me by name if you wish. Thank you again for visiting JustAnswer and see you again in the future I hope.