Buying parents house

pogie2

Hi, I hope someone can give me some advice on this.

I am hoping to buy my parents home from them for £119,000, they would be staying there with me and i would have a mortgage. This is quite alot less money than the house is worth and i am unsure whether this will cause any issues with stamp duty, etc.

Also does anyone know how i can arrange for my parents to still have some control with regards to the house as they cannot be on the deeds as they will nt be named on the mortgage. Any advice would be gratefully received.

Thanks

Vicky

Annisele

There are all sorts of potential pitfalls with that sort of scheme. Which pitfalls might apply to you depends in part on why you and your parents want to effect that transaction, and what sort of "control" your parents want to retain. Are you able to elaborate at all?

Are you trying to do a sort of DIY equity release? Are you trying to protect assets from your parents' creditors / stop their house being sold to pay for care? Are you just trying to get on the so-called property ladder?

pogie2

The plan is to build a large extension for myself and family to live in. But in order to get the money for this we need a mortgage so have to be the owners of the property. I would just be happier if something could be arranged so i don't feel like i am taking their house which they have worked hard for anyway from them for nothing as the money i am paying them is paying off their current mortgage and paying for the extension.

I am already a home owner but would be selling my current property and we would all be living there together for the long term.

SmlSave

I think you could create a Trust Deed to protect their interest in the property?

I suppose it depends upon what sort of control you wish to give your parents.

RB-Arc

That is correct, a Deed of Trust would protect your parents interest in the property, eventhough they will not be on the mortgage

Loopgames

You have to consult a solicitor about this maybe to set up a trust of some sort.

I bought my parents old flat over 10 years ago at a huge discount. My conveyancer put it down as 'gift' meaning that if they had passed away within 7 years of selling it to me then it would be classified as inheritance and subject to inheritance tax. As it turned out I sold it later at the value of the market and ended up paying back the difference between my purchase price and the market price. I didn't benefit financially myself.

martindow

OP another issue to consider is deprivation of capital if your parents are elderly and require care in the future.