Do I Need A Solicitor To Sell My House To My Son?

Selling your house to your son or other family members can be a great opportunity to help them onto the property ladder. It is becoming increasingly difficult for those just starting out with their careers to be able to afford the deposit to buy a house and mortgage lenders are seemingly asking for larger sums upfront and other punitive costs.

If you have decided to sell your house to your son, you might think it possible to save money on the whole transaction by not getting a solicitor involved or deciding not to get a survey done. After all, both parties will be familiar with the house and you will be going into this with the best of intentions in helping your son. However, there are a number of things to consider if you decide to go down this route. In this article, do I need a solicitor to sell my house to my son, we take a look at the pros and cons of using a solicitor or doing it yourself.

Free Initial Telephone Discussion

For a free initial discussion on how we can help you with the legal aspects of selling your house, get in touch with us today. We will review your situation and keep you regularly updated, discussing progress in a clear and approachable manner. Early expert legal assistance ensures no mistakes are made and also avoids the stress of dealing with these issues on your own. Simply call us on 0345 901 0445 or complete our online enquiry form and a member of the team will get back to you.

Can I do the conveyancing myself?

Before deciding to have a go at carrying out the conveyancing yourself, it is important to understand what are the typical tasks that are undertaken by a solicitor during a property transaction. Just because the purchaser is your son, it doesn’t negate the need to carry out the conveyance properly. These tasks can include:

• Obtaining title deeds and filling in the necessary questionnaires associated with selling a house.
• Dealing with the mortgage company and paying off any outstanding mortgage if this is applicable.
• A contract for sale will need to be drawn up and sent to all parties concerned.
• Setting a date when your son can move in.
• Taking and holding the deposit.
• Signing off on the deed of transfer.
• Giving the property deeds to your son and accepting the remaining balance of the purchase money.

Is there anything else I should consider?

If you decide to have a go at doing all of this on your own, you will also need to consider a few other.

1. Assuming you can carry out all this work, it will need to be done in a timely manner.
2. If a mortgage company is involved, they will insist upon a solicitor or conveyancer to carry out the work. Further, some will insist on a solicitor being one of their approved solicitors. This is referred to as “being on the panel”.
3. If a mortgage is involved, the mortgage company will not accept an undertaking from you. An undertaking is where one solicitor that holds the funds of the sale promises to pay the mortgage company to settle any outstanding debt.
4. It is extremely unlikely that you will have professional indemnity insurance. This means that if you get anything wrong during the transaction, you will be leaving yourself open to being sued. Even though you may feel safe in the knowledge that your son won’t sue you, sadly things can sometimes turn sour when large sums of money are involved.

Can I sell the house for any price I want?

If you can afford it, you may well feel the need to sell your house to your son for as little as possible. However, there may be tax implications with this. HMRC will look at the value of the property when selling rather than the price that is paid. As a result, if you sell the house for way below its market value this can be seen as an attempt to avoid associated taxes such as capital gains, stamp duty and inheritance tax. There are some allowances regarding stamp duty and selling to an immediate relative but these allowances can change so it is advisable to seek advice from a suitably qualified accountant.

Are there any other risks in selling to my son?

Everybody’s circumstances are different and there may be a number of reasons you want to sell to your son. Be clear from the beginning what you are agreeing to for example, are you going to stay in the house and pay rent, are you going to move out completely upon completion, are you aware that if your son is married the house may be involved in divorce proceedings at some point in the future. As long as you try and keep emotions out of the whole process, things will progress much more easily.

How we can help

We have a proven track record of helping clients buy and sell their homes no matter the size. We will guide you through all the necessary legal due diligence in a comprehensive and timely manner. We firmly believe that with the right solicitors by your side, the entire process will seem more manageable and far less daunting.

How to Contact our Residential Property Solicitors

It is important for you to be well informed about the issues and obstacles you may face during the transaction. However, expert legal support is crucial in terms of saving you money and ensuring you achieve a positive outcome.

To speak to our Residential Property solicitors today, simply call us on 0345 901 0445, or allow a member of the team to get back to you by filling in our online enquiry form. We are well known across the country and can assist wherever you are based. We also have offices based in Cheshire and London.

Authored by Ben Posted in News, Residential Property Tagged as