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Buying parents house

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obeywan_kenobe
obeywan_kenobe Posts: 121 Forumite
in House buying, renting & selling
If I wanted to buy my parents house could it be done like this?

Thay give the house to me as a gift and you give the equivalent in money as a gift to them.

Is it possible to get out of stamp duty?

Maybe i am totally naive!!

Comments

  • Robert_Sterling_3
    Robert_Sterling_3 Posts: 7,112 Forumite
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    Well there is no reason I can think of why they could not give you their house if they want to.

    What I can't understand is why you would expect me to give them money afterwards.
    ...............................I have put my clock back....... Kcolc ym
  • bjmaca
    bjmaca Posts: 13 Forumite
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    You would still have to pay stamp duty as it is change of ownership. But dependant on the price that goes through on the legal docs and also the area where the house is. A lot of areas are classed as up and coming so they are stamp duty exempt up to £150,000
    Regards

    Mark
  • Galtizz
    Galtizz Posts: 1,016 Forumite
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    You are only allow to 'gift' anyone upto £3000 per year without paying tax on it. Of course, this only becomes a problem if the giver dies or is taken into a home and somebody (the tax man or the council) start looking into the givers finances (the tax man may have a different opinion on it not being important ;))

    They can 'gift' you their house without you having to pay them back - but you have to charge them rent :-/ - I suppose you could give them the money (cash) and they can pay you via the bank (but you might be on dodgy ground here)

    THIS government website might help

    I might be totally wrong on this but, are you doing this to get out of having to pay fees if your parents were to go into a home?

    If so - save yourself the money and don't buy their house. The system used to be that, if you bought the house more than 7 years before they had to go into a home they couldn't make you sell the house to fund the nursing/ residential care fees.

    However, now there is no time limit. If the council suspect that the house was transfered into your name to get out of paying fees they will still make you sell it. As far as I know there is no way around it :-/

    HTH
    When life hands you a lemon, make sure you ask for tequilla and salt ;)
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