If you, as a spouse or registered civil partner, have inherited a property from your deceased partner and wish to live in it yourself, you are exempt from inheritance tax. However, you must live in the property yourself for at least ten years and may not rent it out during this time. An exception applies if you have to move into a nursing home during this period. Different tax rules .
It is also crucial whether you inherit the property alone or together with other relatives, such as your siblings. In the latter case, you form a community of heirs and must reach a joint agreement on the use of the property (see page XX).
If you wish to use the house or apartment yourself, two options are possible. Either you sign a lease and move in, or you acquire the property outright by paying out your co-heirs. For this, the property's value should be determined by an independent building surveyor or experienced real estate agent. This valuation serves as the basis for the amounts you need to pay your co-heir(s). To finance this amount, you can take out a mortgage on your new residence. If you already own another property, you can alternatively use that as a mortgage as well.
Anyone moving into an inherited existing building must also plan for extensive renovations. In most cases, the previous residents lacked the resources to modernize the roof, windows, or heating system. Often, the garden is overgrown. Floor plan requirements are also different: while kitchens in the 1970s and 80s were frequently very small and living rooms quite spacious, today, open-plan layouts where living and dining areas flow seamlessly into one another are highly valued. This often requires demolishing walls, reinforcing ceilings with steel beams, and redesigning windows and entrances. Potential occupants should factor these investments into their budget before moving in.
Do you need support with the restructuring or dissolution of an inheritance community? We would be happy to advise you.
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