The sale of a family members home seems to have got very complicated from the solicitors point of view.
The will states:-
50% to family member A
25% to family member B
25% to family member C
Family members A & B are executors.
Family member C wants to purchase the 75% owned by A & B. Everyone has agreed a sale price of £240,000 as this is what market value was set at.
Family member C will leave £40,000 of their £60,000 in the house as a deposit and use £200k mortgage to buy the rest of the equity.
When instructing Sols, it was explained the mortgage is happy for it to be a transfer of ownership and they don’t require searches (indemnity instead) but was advised there needs to be 2 solicitors as there is a mortgage involved it’s classed as a standard sale and purchase.
A seller and purchase sol have now been instructed but the financial advisor is querying why. The solicitors are saying it needs to be separate for the lenders sake which isn’t the case.
A further spanner has been added today. Buyers sol has asked for proof of funds for family member C. It has been explained (again as already outlined several times before) that it is coming from her 25%. I have now been advised that the purchase price needs changing on all documents to £200k as that is how much C is buying the house for. Obviously this is not the case as the mortgage would then become a 100% mortgage. Financial advisor has confirmed the lender has been aware of the situation since day 1 and is happy for the deposit to come from the equity.
Unsure why the buying solicitor is being so difficult. It sounds like this could have just been a straight transfer into beneficiary’s names then into C. We’re 8 weeks down the line and getting more frustrated. Selling sol is great but I suppose she isn’t doing that much.
Ive had to provide the most ridiculous things as if I am selling a property to Jo blogs when this isn’t the case.
To add further complications. Family member B is helping C buy the property with a dual borrower sole proprietor mortgage. So really B & C are buying the property off themselves with this whole buying and selling sol malarkey.
Anyone else been in this situation? I can’t imagine it’s too niche and rare?