Inheriting property can be a complex process, especially when it comes to transferring ownership. If you are wondering how to transfer ownership of inherited property in the UK, you have come to the right place.
At Property Saviour, we understand the intricacies of property inheritance and are here to guide you through the process.
Table of Contents
Understanding the Basics
When someone passes away, their property becomes part of their estate. The first step in transferring ownership is to determine if there’s a will. If there is, the executor named in the will is responsible for managing the estate. If there’s no will, the next of kin must apply for letters of administration.
How to Transfer Ownership of Inherited Property in the UK?
Transferring ownership of inherited property involves several legal steps that must be followed carefully to ensure a smooth transition.
Sometimes, transferring inherited property isnt straightforward. There might be outstanding mortgages, disputes among beneficiaries, or unregistered property to deal with.
Understanding Property Ownership
Before you can transfer ownership, it’s essential to understand how the property was owned by the deceased. There are three main types of property ownership:
- Sole Ownership: The property was owned by one person.
- Joint Tenants: The property was owned by two or more people, with each owner having equal rights to the whole property.
- Tenants in Common: The property was owned by two or more people, with each owner having a specific share of the property.
To determine the type of ownership, you can check the title register, which can be downloaded from the Land Registry for £3.
If the property was owned solely by the deceased, you’ll need to obtain a grant of probate before proceeding with the transfer. For joint tenancies, the property automatically passes to the surviving owner. In the case of tenants in common, the deceased’s share will be distributed according to their will or intestacy rules.
Obtaining Probate
If the property was owned by a sole owner, you will need to obtain probate before you can transfer ownership. This involves:
- Completing a Probate Application Form: This form can be accessed online and must be submitted to the Probate Registry along with an official copy of the deceased’s death certificate.
- Swearing an Oath: You must promise that all the information provided is true.
- Paying the Probate Fee: The fee varies depending on the value of the estate.
Transferring Ownership
Once you have obtained probate, you can proceed with transferring ownership:
- Fill in Form AP1: This is an application to change the homeowner on the register.
- Fill in Form TR1: This form allows you to transfer a registered property.
- Fill in Form ID1: This proves your identity when registering an application with the Land Registry.
- Pay the Correct Fee: Use the fee calculator to determine the correct fee payable.
- Send the Forms to the Land Registry: Include all completed forms, supporting documents, and the fee.
You’ll also need to provide a copy of the grant of probate or letters of administration, along with the death certificate.
Registering an Unregistered Property
If the property is not registered, you will need to register it for the first time:
Fill in Form FR1: This is the application for first registration.
Create a Scale Plan: Detail the land measurements as per GOV.UK’s guidance.
Fill in Form AS1 or TR1: Depending on how you inherited the property.
Pay the Registration Fee: Use the fee calculator to determine the correct fee payable.
Send the Forms to the Land Registry: Include all completed forms, supporting documents, and the fee.
Financial Obligations
Be aware that inheriting property can have tax implications. While there’s no immediate income tax or capital gains tax to pay in most of the UK (Scotland has different rules), you may need to pay capital gains tax if you sell the property later.
- Mortgage: If the property has a mortgage, you will need to speak to the lender before transferring ownership.
- Inheritance Tax: You may need to pay inheritance tax on the property.
- Capital Gains Tax: If you sell the property, you may need to pay capital gains tax on the proceeds.
Insider’s Tips
- Start the process as soon as possible to avoid delays
- Keep all relevant documents organised and easily accessible
- Consider getting professional valuation of the property
- Be prepared for potential inheritance tax liabilities
Insider’s Tips
- Start the process as soon as possible to avoid delays
- Keep all relevant documents organised and easily accessible
- Consider getting professional valuation of the property
- Be prepared for potential inheritance tax liabilities
What if there are multiple beneficiaries?
If multiple people inherit the property, you’ll need to decide how to split ownership. This might involve becoming tenants in common or selling the property and dividing the proceeds.
Do I Need to Pay Stamp Duty?
If the property is left to you in a will, you don’t have to pay stamp duty, but you may need to pay inheritance tax. However, if the property has an outstanding mortgage, you might need to pay SDLT on the remaining mortgage amount.
This table shows different types of ownerships:
| Type of Ownership | Description |
|---|---|
| Sole Ownership | Owned by one person. |
| Joint Tenants | Owned by two or more people with equal rights. |
| Tenants in Common | Owned by two or more people with specific shares. |
How long does it take to transfer ownership of inherited property?
The process can take anywhere from a few weeks to several months, depending on the complexity of the estate and whether probate is required.
Can I live in an inherited property before probate?
While its not illegal to live in an inherited property before probate, its best to wait until youre the legal owner to avoid potential complications.
Do I need a solicitor to transfer ownership of inherited property?
Yes you will need a solicitor to successfully transfer the ownership of an inherited property. Solicitors are good at following procedure set by the Land Registry.
How Do You Transfer Ownership Of Inherited Property In The UK if the property is unregistered?
For unregistered properties, you’ll need to register the property with HM Land Registry for the first time as part of the transfer process. This involves providing evidence of ownership and completing additional forms.
At Property Saviour, we specialise in handling all types of property situations, including inherited properties. If you’re dealing with an unregistered inherited property, wed be happy to guide you through the process.
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