I’m going to put the following in bullet points to allow for better understanding.
My brother, aunty & I bought a house in 2008. Aunt was the one who took out the mortgage with my brother and me making payments to her directly each month for our share of the payments.
*In 2013 our Aunty died intestate and my brother and I continue to live here and continue paying the mortgage albeit in her name.
*Our grandmother inherited estate.
*A deed of variation by my grandmother for the house to be passed to my brother and me.
*As of now my brother and I would like to sell the house but have found we are unable to as the mortgage is still in our deceased aunty’s name.
*Advice was given that if we want to be able to sell the house we would need to get a mortgage on the property and then we would be able to put the house in our name and change the names with the land registry, even though we have a deed of variation.
*Currently, we are unable to get a mortgage as my brother has recently become redundant.
*The other advice given was that our grandmother could sell it and just transfer the proceeds.
*However, another family member pointed out that there might be tax implications.
At this juncture, we are utterly confused and are unsure which route to take.
We don’t want to go down one route and end up being stung with a lot of tax when it could have been more efficient down another route.
Questions:
Are there any tax implications anywhere?
Which route is most efficient?
If we managed to pay off the remainder of the mortgage, and then transfer it into our name and then sell it, would be best in terms of taxes? On the other hand, is it better to let our grandmother complete the sale?
FYI: House bought in 2008 for circa £224K. Estimated current value: £520K (upper end).
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