Buying Parents House

opinions4u

The button for Holly's post is to the bottom right ...

May also be worth ensuring you don't create a Capital Gains Tax issue. This could be major if you choose not to live in the property.

http://www.hmrc.gov.uk/cgt/property/basics.htm#6

I've been brought up to see the value of money and would never be expected to be given a house for free. I was just thinking of a cheaper way to purchase the house rather than pay interest to a bank.

The value of interest lost to your parents is important then. If they have tens of thousands of pounds tied up in the property, then they are losing interest or investment returns as a result. Potentially losing a small fortune in tax relief that could be obtained by shovelling the money in to pensions. This is before taking in to account the risks of lending to a family member.

holly_hobby

Thanks O4U x (my thanks button has temporarily disappeared !!)

LH - Sounds from your recent post that Mum & Dad moving into an inherited property, will present the real possibility of IHT issues which will need to be dealt with - so it is absolutely paramount that this arrangement, and their estate planning as a whole, are adequately and fully addressed by both your legal & financial advisers (as well as the other raised legal issues or course).

Hope all goes well ..

Holly x

Edit - its re-appeared ... so thank you from Holly duly noted x