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Buying my parents home and living there with them
NivlekDoow
Posts: 10 Forumite
Can someone please tell me how we may go about something, we are wanting to move in with our parents and extending their house to accomodate us, but as we will be paying for the extension, we wish to purchase the house off them at the same time and all live there together. As we will be inheriting the house anyway we would want to buy the house at a reduced rate but we do not know the implications of this. Can anyone explain what we need to do and how the best way to do it is?
The house is worth approx £200,000.
The house is worth approx £200,000.
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Comments
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There would be major imlications for your parents. You wont necessarily inherit the house, what if one or both of them had to go into a nursing home and have the fees to pay. Would they be able to pay them out of savings, would you be able to afford to pay for them. Under todays rules, houses are very often sold to fund care and the fact that they sold the house to you could be seen as
deprivation of capital if they ever needed any means tested benefits.
You'd be best speaking to a specialist solicitor. Its a minefield out ther I;m afraid.make the most of it, we are only here for the weekend.
and we will never, ever return.0 -
the fact that your parents receive cash from you for their sale does not avoid the depreviation of assets liability because they sold it at a discount, so the amount of the discount would be a relatively clear instance of deprivation. Obviously if they then give away their cash from the house sale to you in subsequent years this would further support the idea the whole house sale was deprivation (then again deprivation is irrelevant if your parents will never need council funded care).
any discount given by your parents would be deemed to be gifted equity and therefore potentially be liable for IHT if they die within 7 years and the estate value is above IHT threshold
because it would be a sale between connected persons, you would have to pay stamp duty on the market value, not on the price you pay your parents0 -
Who is we who are moving in with out parents? Siblings or a couple moving in with one set of parents?If you've have not made a mistake, you've made nothing0
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Its a couple and our child0
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