Wanting to buy inherited home from parents, confused with motgage and CGT??

snowdon78

Hello,

My father in law inherited a property a few years a go and we are looking to buy this from him at lower price than market value. So I have a few questions!!

1.Would he still have to pay CGT and how is this calculated?
2.Or could he give us the property as a gift how would CGT work on this?

3.Also, if we wanted to get a mortgage how would this work? If the property is worth £150k and we bought it at £100k does this mean we could apply for a 70% mortgage or do we still need to have a deposit?

Any advice would be greatly appreciated.

Thanks

CLAPTON

assuming your father doesn't live in the house (and never has) then when he disposes of the house he is liable for CGT based on the true market price... it doesn't matter if he gives it to you or sells cheaply

so there is no tax advances in doing so.

If you don't buy at the market rate then should he die within 7 years then the 'gift' element would be included in IHT calculations.

snowdon78

Thank you for the advice - the property is not his main residence but it is the home he grew up in as a child. Does this make any difference with CGT?

Thanks

CLAPTON

his residency whilst the owner is important