House swap with my son

mingederr

Hi there,

I am after some advice about swapping houses with my son. He has a mortgage on a two bedroom house. I own my three bedroom house. With a new family, he needs the space and I dont. I am quite happy to make this move and it feels good to let him have some of his inheritance now so that I can see him enjoy it. Obviously he will have to move his remaining mortgage with him. I cant afford to pay that as well!!!

With a swap like this are we still in to the realms of Stamp Duty Land Tax etc or are there any any money saving ways around all of the legal fees?

Very grateful for any advice.

Barney088

Yes you are in the Stamp duty area although this has moved to property bought over £125K now. You can sell it at under value to your son and "gift him" some of it. This will have IHT implications if you don;t survive the gift by 7 years. There will need to be a purchase price agreed and doing anything to evade tax is a bad idea, avoiding it by being smart is a good idea.

You will need to get a solicitor involved which may do you a deal, it's worth asking.