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Best way to sell 2nd house cheaply to parents
camelopardis
Posts: 77 Forumite
Hi all - bit of a complicated situation here - can anyone help?
My wife and I own our own home outright. My wife recently inherited another house from her father.
This 2nd house is worth around £170,000 in its current condition but needs around £30,000 of improvements/repairs before it can be lived in (its been empty for 16 years)
My parents have recently reached retirement age, and would like to release some equity in their own house in order to fund there retirement.
After some discussion, my wife and i would like to sell them our 2nd house for less than its value (say £120,000), so that my parents could sell their own house (for £220,000) and use the released money for their retirement. This would be on the proviso that we retained an interest in the property in some way or another (eg: through will)
1) Is this possible to do? Would there be any tax or legal implications for either my parents or ourselves?
2) Would it be better to sell them a part share in the house rather than outright in order to retain a "charge" on the property?
My wife and I own our own home outright. My wife recently inherited another house from her father.
This 2nd house is worth around £170,000 in its current condition but needs around £30,000 of improvements/repairs before it can be lived in (its been empty for 16 years)
My parents have recently reached retirement age, and would like to release some equity in their own house in order to fund there retirement.
After some discussion, my wife and i would like to sell them our 2nd house for less than its value (say £120,000), so that my parents could sell their own house (for £220,000) and use the released money for their retirement. This would be on the proviso that we retained an interest in the property in some way or another (eg: through will)
1) Is this possible to do? Would there be any tax or legal implications for either my parents or ourselves?
2) Would it be better to sell them a part share in the house rather than outright in order to retain a "charge" on the property?
0
Comments
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Quick answer is 2) This gives you a legal interest in the house and the taxman won't be wondering why your wife disposed of it below market value.A house isn't a home without a cat.
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