Buying partents property

kevc007

Partents property is worth 85k. (This is a comercial unit and not their home)
There is no outstanding mortgage.
Partents require 20k as loan is secured against property.

Can I but this property for 20k or less and then mortgage it for full value to obtain funding to renovate property?

Basicaly what is the best way I can complete this transaction. Without costing a fortune.

Help please:beer:

dancingfairy

Why would your parents sell a 85k property to you for 20k? What's it actually worth now with the work that needs doing? have you priced up the works and then what is the property worth?
How is the property owned - ie is it owned by your parents privately or in some kind of company arragement?
I know that if you sell a house for below market value and then need benefits or care etc it can come into play so I would have thought that the benefits office won't exactly start paying out benefits for your parents if they think they have given away a sizeable asset.
Having said that your parents can gift you amounts of money (provided they last another 7 years I think) (but not 60k in one go) and I think it's then outside inheritance tax?
I'm not sure but it might not be as straightforward as it sounds. I would be tempted to get legal advice for both you and your parents. (assuming that your parents are of course happy to sell to you at 20k).
df