lending money to family abroad

peester

Hi,can help me please;
my sister lives with her family in Italy (she is italian domicile) and it is close to being evicted from the flat she is renting reasonably cheap. She can't affort the rent on another place and she is not entitled to equivalent of council house.
I would like to lend her £50,000 for her to buy a flat, which will be repaid to me (or my kids) after her death.
My questions are :
1. how to send the money cheaply
2. what if any provisions do i have to make
3.if i remortgage my house -i can afford it as currently i have a very small mortgage left, what will be the tax implication for me and for her .

Ever so grateful

Rafter

peester,

Not the easiest request unless you can find an expert on buying italian property. I suggest you do a google seach on just that to understand the tax and other implications and also the best way to get a good exchange rate on transfers.

Your timing is bad though. The Euro is currently very strong versus the £ and it isn't clear whether the Euro will get worse of whether the £ is likely to stay week as a result of government borrowing during the recession.

Would you not be better off helping her financially to bring the rent up to date, rather than making a large and expensive loan?

R.

peester

thanks mr rafter, but no - cannot do anything with theyre existing apartment blocks - they are being knocked down..

As for finding somewhere else for them to rent i just thought maybe others can benefit one day with a house thats owned by us / being bought out..

Ill have a think see whats best. Googling websites as we speak.

Ta.