Inheritance of house from uncle bought under 1995 tenant purchase scheme

[Mark Rogers]

My sister and I have jointly inherited a house from my uncle which was bought from the local county council under the 1995 tenant purchase scheme (right to buy) around 11 years ago.

We live outside Ireland and have no intention of occupying the property as our permanent home (as the scheme expects) - and subject to us being able to find a buyer for what is a remote rural property (not certain!) would want to try and sell this as soon as the inheritance/probate is sorted.

I understand that the county council needs to grant permission before a property bought under the tenant purchase scheme can be sold within 20 years of purchase. Has anyone encountered this issue before i.e. could the council refuse to approve the sale or have a claim on the proceeds of the estate from any sale?

We are likely to have to pay 33% CAT on the entire legacy less expenses due to a previous inheritance in group B - hence the concern.

 

[Vanilla]

It will depend on the wording of the clauses in the vesting order from the Council to your uncle, so your solicitor will obtain a copy. Normally in practice the council will want to see a first time buyer or owner occupier purchase ( where they do not own another house). Best to seek clarification directly now from the council as restrictions may affect the market price. In turn a reduced market price should be entered for probate. CAT is only payable when you are beneficially entitled in occupation/possession, so if unusual restrictions apply, this in turn may serve to delay your payment of CAT.