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    • fittoretire
    • By fittoretire 22nd Sep 16, 1:19 PM
    • 1Posts
    • 1Thanks
    fittoretire
    Buying daughter's house below market value.
    • #1
    • 22nd Sep 16, 1:19 PM
    Buying daughter's house below market value. 22nd Sep 16 at 1:19 PM
    Our daughter’s marriage has irrevocably broken down.
    Their house (current value £160000) is held in joint ownership.
    Her husband and she have agreed to sell the house to us for £100000 for a quick resolution, instead of placing the house on the open market, so she can continue to live in it.
    Any legal pitfalls?
Page 1
    • Devon_Sailor
    • By Devon_Sailor 22nd Sep 16, 1:25 PM
    • 283 Posts
    • 577 Thanks
    Devon_Sailor
    • #2
    • 22nd Sep 16, 1:25 PM
    • #2
    • 22nd Sep 16, 1:25 PM
    Why not just pay him half the market price (£80k) to buy his half out, and then gift your newly purchased equity to her.

    Save yourselves £20k then?
    • TBagpuss
    • By TBagpuss 22nd Sep 16, 1:26 PM
    • 4,621 Posts
    • 6,027 Thanks
    TBagpuss
    • #3
    • 22nd Sep 16, 1:26 PM
    • #3
    • 22nd Sep 16, 1:26 PM
    Will you require a mortgage? If not, then it might be better to transfer the property to her sole name and for you to give or lend her the money to buy out her ex. Amnunequal division between her and her ex may well be reasonable, a sale at an undervalue might potemntially guive rise to later claims y her husbnad that he was misled or pressured too, effectively, gift you 60% of their joint property
    • Guest101
    • By Guest101 22nd Sep 16, 1:28 PM
    • 11,251 Posts
    • 10,567 Thanks
    Guest101
    • #4
    • 22nd Sep 16, 1:28 PM
    • #4
    • 22nd Sep 16, 1:28 PM
    What's he getting out of this?
    • Bluebirdman of Alcathays
    • By Bluebirdman of Alcathays 22nd Sep 16, 1:36 PM
    • 2,379 Posts
    • 2,313 Thanks
    Bluebirdman of Alcathays
    • #5
    • 22nd Sep 16, 1:36 PM
    • #5
    • 22nd Sep 16, 1:36 PM
    If I was him I'd be getting a lawyer immediately - what a rotten deal!
    • Thrugelmir
    • By Thrugelmir 22nd Sep 16, 1:41 PM
    • 50,009 Posts
    • 41,661 Thanks
    Thrugelmir
    • #6
    • 22nd Sep 16, 1:41 PM
    • #6
    • 22nd Sep 16, 1:41 PM
    Any legal pitfalls?
    Originally posted by fittoretire
    Hopefully your daughter has legal counsel and isn't being short changed by this proposal.
    “A man is rich who lives upon what he has. A man is poor who lives upon what is coming. A prudent man lives within his income, and saves against ‘a rainy day’.”
    • tlc678910
    • By tlc678910 22nd Sep 16, 1:52 PM
    • 350 Posts
    • 735 Thanks
    tlc678910
    • #7
    • 22nd Sep 16, 1:52 PM
    • #7
    • 22nd Sep 16, 1:52 PM
    Hi, If you buy the house in your name and already own a property be ready to pay 3% stamp duty (on top of any other due) as you will own a second property.
    Tlc

    Edit: not sure why you daughters partner would want to give up half of the additional 60K to save marketing the property.
    How much equity do your daughter and her partner have in the property? (After any mortgage). Can you pay him half of the equity they hold and take a joint mortgage with your daughter for the amount of the remaining mortgage owing. You can hold the mortgage/ownership so it transfers to your daughter automatically if anything happens to you.
    Tlc
    Last edited by tlc678910; 22-09-2016 at 1:57 PM.
    • shortcrust
    • By shortcrust 22nd Sep 16, 1:52 PM
    • 1,068 Posts
    • 1,286 Thanks
    shortcrust
    • #8
    • 22nd Sep 16, 1:52 PM
    • #8
    • 22nd Sep 16, 1:52 PM
    How kind! You get to help your daughter and make £60,000 at the same time...
    • david1951
    • By david1951 22nd Sep 16, 1:53 PM
    • 199 Posts
    • 213 Thanks
    david1951
    • #9
    • 22nd Sep 16, 1:53 PM
    • #9
    • 22nd Sep 16, 1:53 PM
    I don't really get this. Why £100,000 and who is the money going to? Are the contents of the house involved in the settlement?
    • theartfullodger
    • By theartfullodger 22nd Sep 16, 2:03 PM
    • 8,265 Posts
    • 10,779 Thanks
    theartfullodger
    It's not only the marriage that is breaking down here. Want to see daughter & grandchildren at all?
    • cjdavies
    • By cjdavies 22nd Sep 16, 2:05 PM
    • 1,597 Posts
    • 1,287 Thanks
    cjdavies
    Spin this around and assume it his parents doing this and he would continue to live there, how would you feel about this towards your Daughter?



    How kind! You get to help your daughter and make £60,000 at the same time...
    Originally posted by shortcrust
    Which I assume will go the Daughter in the future and ex-husband £0
    • ScorpiondeRooftrouser
    • By ScorpiondeRooftrouser 22nd Sep 16, 3:18 PM
    • 986 Posts
    • 1,331 Thanks
    ScorpiondeRooftrouser
    Spin this around and assume it his parents doing this and he would continue to live there, how would you feel about this towards your Daughter?





    Which I assume will go the Daughter in the future and ex-husband £0
    Originally posted by cjdavies
    Well, exactly. I am a bit shocked that anyone here is concerned about the daughter. The family, as a unit, is gaining £80K of assets for £50K. It's the husband who is losing out by £30K.

    One can generally assume that the parents' gain is also the daughter's gain.
    • foxy-stoat
    • By foxy-stoat 22nd Sep 16, 4:19 PM
    • 1,086 Posts
    • 613 Thanks
    foxy-stoat
    Our daughter’s marriage has irrevocably broken down.
    Their house (current value £160000) is held in joint ownership.
    Her husband and she have agreed to sell the house to us for £100000 for a quick resolution, instead of placing the house on the open market, so she can continue to live in it.
    Any legal pitfalls?
    Originally posted by fittoretire
    I do not see any problems with this, as long as they own the property outright with no mortgage, your buying it with cash from your own savings and your giving the soon to be Ex husand £80,000.
    • xylophone
    • By xylophone 22nd Sep 16, 4:27 PM
    • 18,463 Posts
    • 10,388 Thanks
    xylophone
    Make your daughter a gift of £80,000 so that she can buy out her ex husband at fair market value?

    This would be a PET as far as your estates are concerned - keep a record for IHT purposes.
    • bod1467
    • By bod1467 22nd Sep 16, 5:11 PM
    • 14,782 Posts
    • 13,399 Thanks
    bod1467
    I bought my first house below market value.

    When my Dad became terminally ill he sold me the house for £37k when the market value was £39k. This had a few benefits ...

    1. I was newly married and was looking to buy a home anyway
    2. We could all stay in the "family" home so my Dad wouldn't have to find somewhere else
    3. The major element of my dad's estate was converted into cash, thus making future execution of his will easier to manage

    (My 2 brothers were aware of this, and agreed to it. Indeed my younger brother was living with us).

    Not quite the OP's situation, but it shows it can (and does) happen.

    PS - from the values you'll gather this was a long time ago.
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