Transfer mortgage to Parents' house

sweetmelody

Hi,

I would really appreciate some advice to get me on the right track. I would then, of course, get formal legal advice.

We have a five year fix with almost 4 years left to run with our current mortgage provider. We are in the process of selling our house, after which we will be moving in with my parents for approx 1 year.

Is the following scenario possible, and what are the tax implications (CGT, stamp duty and possibly inheritance tax)?

Mortgage is transferred to my parents' property (either through sale or because property is held in a trust of which I am a beneficiary). We benefit because we avoid early redemption penalties and can transfer the mortgage deal to our new property when we hope to buy in a year's time. My parent's benefit through reduced or zero mortgage interest payments for a year (we have an offset mortgage and the equity we would release on selling our current property means we could reduce the mortgage on my parents property to a level where no interest would be payable for a year).

We would have to 'sell' the property back to my parents in a year's time when we bought again.

Can anyone help me through the implications?
Thanks