In the realm of inheriting property, navigating the tax landscape is crucial. Here’s a breakdown of key considerations in straightforward terms. 

Residential Property Inheritance: 

• Post-1985 Purchase: If the property served as your grandfather’s primary residence, bought after 19 September 1985, no immediate tax impact. You inherit the cost base, and Capital Gains Tax (CGT) applies when you sell. 
• Pre-1985 Purchase: For properties purchased before 19 September 1985, you inherit a cost base equal to the market value at the date of death. 
• Non-residential Intent: If the property was a principal residence but you opt not to live in it, a two-year window from the date of death exists to sell without CGT concerns. 

Inheriting an Investment Property: 

• Post-1985 Purchase: No immediate tax implications; you inherit the cost base. CGT comes into play when you decide to sell. 
• Pre-1985 Purchase: Similar to residential property; you inherit a cost base equal to the market value at the date of death. 

Borrowing to Facilitate Inheritance: 

• Partial Ownership: If inheriting a share, securing a mortgage to buy out co-beneficiaries might be challenging without a 5% deposit. Specialist lenders can be instrumental, focusing on equity rather than traditional savings. 

Buying Out Siblings in an Inherited House: 

• Navigating Disagreements: In cases where siblings differ on joint ownership or selling, options include buying out a sibling, transforming the property into an investment, private arrangements, selling the house, or involving the court as a last resort. 
• Buying Sibling’s Share: The process entails property valuation, determining the sibling’s share, applying for a mortgage or refinancing, making a purchase offer, and formalizing agreements with legal assistance, often from a solicitor.