Buying below market value

das_tard

Hi

I am looking at purchasing my parents house at below market value? it has been valued at 135k but looking to buy at 115k. Are there any issues on my parents side with regards to this? I am aware there could be laundering, inheritance tax issues (gifts etc.) but given that they will not be near the threshold for tax anyway, are there any other problems that may arise?

Or do you simply inform the solicitor of this at purchase?

cheers

DVardysShadow

Put it on the market for 3 months, find out how much it is worth and document the offers. Top the highest with 115 or more. I am sure the house is lovely, but you might be surprised that it attracts little more interest than somewhere with uncut grass in a general mess. At least that way, things are straight re tax etc.

Any errors which arise can be set aside against the context of assisting each other with groceries as families do.

lellow_lorry

The way the market is at the moment? 20k off the price (roughly 15%) is not unusual. Main concerns with tax and laundering is where for example a 500k house sells for 50k......questions may be asked. When you look at flats in Leeds in 2007 sold for 239k.......sold in jan for 79k ouch!! but the taxman will not bat an eyelid at that.