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Buying a house from a relative..
pjjafc
Posts: 241 Forumite
Quick question
If a relative was willing to sell you a property worth £300,000 for £100,000 is this possible??
If a relative was willing to sell you a property worth £300,000 for £100,000 is this possible??
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Comments
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Yes, there is no reason why they cannot provided they are not doing it to escape liabilities (or potential liabilities) of their own.... such as care home fees, bankruptcy etc..
The other issue to bear in mind is that if they were not to survive for 7 years after the gift (£200k would in effect be a gift) then there might be inheritance tax to pay.
We can help you more precisely if you were to post more information about the circumstances of the proposed transaction.If you feel my comments are helpful then I'd love it if you 'Thanked' me!
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Yes, there is no reason why they cannot provided they are not doing it to escape liabilities (or potential liabilities) of their own.... such as care home fees, bankruptcy etc..
The other issue to bear in mind is that if they were not to survive for 7 years after the gift (£200k would in effect be a gift) then there might be inheritance tax to pay.
We can help you more precisely if you were to post more information about the circumstances of the proposed transaction.
Thanks!
Would it make any difference if we were already tenants?? Have been here for 3 years already and am paying rent to them but think it might be better off in the long run to buy the property from them. We were just under the impression we would have to pay the market value which we cannot afford...0 -
If they are happy to sell for 100k is up to them as long as there is no tax/ stamp duty etc avoidance in the equation.
You must have very nice relatives!Debt free 4th April 2007.
New house. Bigger mortgage. MFWB after I have my buffer cash in place.0 -
Thanks!
Would it make any difference if we were already tenants?? Have been here for 3 years already and am paying rent to them but think it might be better off in the long run to buy the property from them. We were just under the impression we would have to pay the market value which we cannot afford...
The fact that you are tenants is unlikely to make a difference. However, if you had a protected tenancy then it would lower the 'value' of the property on transfer which might be beneficial to your relatives as they might face a CGT bill when they sell you the property. Whether or not they do depends on many factors and again I couldn't advise on that without a lot more detail.If you feel my comments are helpful then I'd love it if you 'Thanked' me!0 -
Many thanks for your replies!
Loads of help!
Cheers0
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