How to sell for less than value of house?

Mac1977

My son wants to buy my current property, and I'm willing to sell for the outstanding mortgage only, thereby giving him some of his inheritance early!! It will also save me on Estate Agents fees, and help him get on the property ladder. We live in Scotland.

He earns around £14K and can afford the outstanding mortgage, and would want to borrow some additional funds for furniture and some improvements.

If the value was £45-50,000 and he wanted to borrow up to £38-40K, I assume he can just apply for a mortgage of £40K. The outstanding mortgage is around £34K - awaiting the end of year statement due this month.

So if the valuation survey shows £45K+, and the mortgage applied for would be no more than £40K, I just wondered if there was something I am missing, or is it as straightforward as i think it is?

herbiesjp

YOu will have to fina a lender happy with a "gifted deposit" but you should be fine, with this transaction under value.

If he pays you £40k then £40k will go straight you, and then you can give him back the excess

Robert_Sterling

The gift will be a PET i.e. A Potentially Exempt transfer.
This means in the event of the death of one or other or both of the parents within less than 7 years from the date of the gift it might be liable to IHT.