transfer of morgage/ownership with family

dandare

Hi
my folks are getting on and would like to leave the house to the kids, things is my brother/sister are morgaged up and im not in the best finances at the mo, no debt or anything , but just turned self employed and no real dough at the moment. can the house be transfered over somehow without buying it from them or can it be sold for a nominal fee that would be affordable for me.
any tips advice would be appreciated.
ta

molotov_3

They can give you the house for free though you could be stung for inheritance tax if they die within 7 years (40% on anything over £275K)

dandare

what if the value is under that figure ? are there any other taxes or ought that would need to be paid, how do the go about giving it over. any good websites/links thatd give me a better idea of what can and cant be done .
ta

jonsbird

This may be a sticky subject these days.!!

It may well be seen as a dodgy act by the government.

It is seen as a way of opting out of responsibilites if the "oldies " ever need to go in to care the care fees could be reclaimed from whoever the house os made over too.

I know my own solicitor stronly advised against this.

Also if whoever the property has been handed over too were to go bankrupt the "oldies" could loose the roof over there head....again as advised by our own solicitor,

I would be interested if any one else has tried this approach.

JB

socks_uk

dandare wrote:

Hi
my folks are getting on and would like to leave the house to the kids, things is my brother/sister are morgaged up and im not in the best finances at the mo, no debt or anything , but just turned self employed and no real dough at the moment. can the house be transfered over somehow without buying it from them or can it be sold for a nominal fee that would be affordable for me.
any tips advice would be appreciated.
ta

Hmmm... Just wondering if you've thought this through thoroughly dandare. Here's my story...

I put my house up for sale 6 months ago and asked my dad (almost 75 years old)if I could move into his empty house (he's moved in with his fiance) for the few weeks between selling my house and buying a new one, just to end the chain. I have no desire to live there permanantly as I don't have particularly good memories from there. Anyway, he said 'Yes, No problem'.

Then, one day, on route to town, I noticed a car in the drive and I could see people inside the house. I rang my dad and told him and he said that my brother had moved one of his friends in. GREAT! I thought, better tell my EA that we are no longer 'no chain'.

A few weeks passed and found out about 'houseprices.co.uk' website on MSE website and started looking up different addresses (as you do when you're feeling nosy) and spotted my dad's on there.
I rang my sister in America and got her to look at it too. According to the website, my dad's house was sold in 2003 (3 bed semi £82,000.) . She, being the eldest of 4 children, broached the subject with my dad and we found out that one of my brothers wanted to buy into a business and 'persuaded' my dad to 'sell' him the house and put the money into a joint account where he has now withdrawn ALL of it!
We were gobsmacked as my late mother always said everything would be equally split 4 ways. My sister rang my other brother who is as fuming as we are.

If my dad had sold his house to a stranger and spent all the money on his wedding in June or a world cruise honeymoon, I would have said, 'Silly old fool, hope you both have a great time!' but it's the fact my dad is now virtually penniless living on his pension and he's regetting not getting anything in writing to say my brother agreed to pay my dad back and that his 3 other children have disowned their brother. My sister is coming over from America for the wedding and we all have promised to 'be good' at the wedding but we've got one or two things to say to my brother afterwards.

I might have been just slightly selfish to want to use my dad's house to be able to sell my house with 'no chain' but I personally think my brother has been more selfish by stealing my dad's house off him.

All I'm saying dandare, make sure all intrested parties know about what you are considering unless you don't mind potentially splitting up your family. Your situation maybe totally different.

Jill

dandare

fair point, this is what we're trying to do , my brother/sister both know whats happening but its just how to go about it, i haven't a clue about property/rules/laws/taxes etc.. were just trying to work out the best method so the house goes over to the 3 kids/ and my folks are then tenants there for the remainder of there days.
ta

molotov_3

Value of the house will be taken at market value so doesnt matter what amount you transfer for. Try https://www.landregistry.gov.uk for more info and seeing a solicitor would be a very good idea.