Inheritance Tax: Save £100,000s with simple advanced planning Article Discussion

Mortgage company have agreed in principle to the deal. less than 60% LTV, if my mother gifts us the house entirely. She will not be living with us unless her partner dies and she has to move back for any reason in the future.
Another question? If she gifts us the house, and seven years pass, the property is IHT free. If she then had to move back in after that is the property technically ours laready therefore no issue with her moving back in?. We are technically paying her for the house by re-mortgaging so is this even an issue as we are buying it from her (Even if at a reduced value!)

Sam
Excellent advice many thanks for that!. So basically to summarise, if my mother gifts us the house, on which we mortgage and give her the money, providing she does not initially move in with us there is no tax, CGT or IHT liability ?
Just to re-clarify though, do we have to time this that we sell our property first, before gifting and re-mortgaging?

Thanks for that Sam.
Technically we are not buying the property from my Mother, she is gifting us the house fully into our names. So the property will be our possession.
We are then looking to raise the mortgage to give to my mother for my 2 brothers inheritance share, so it is actually a gift from us to her (Or into trust for them both)

Mortgage company are now causing issues on this by calling it a 'back to back mortgage' , which on reading up, I dont believe this is! Can anyone word this correctly for us to present to the mortgage company. They are saying if it is a back to back, they will not lend on the property until it has been in our possession for 6 months. I cannot see the sense in this, what difference does it make, the property will legally be ours anyway, mortgage free, so where would a six month period come into the risk equation?

Thnaks