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Private House Sale Confusion

Reggie10
Reggie10 Posts: 3 Newbie
in House buying, renting & selling
Hello all,

My mum is looking to move to another part of the UK, but due to a couple of reasons wants to sell her house to me in a private sale.

On one hand I can appreciate that there could be implications, such as stamp duty that wouldn't be paid, inheritance tax, perhaps insurance liabilities etc, but on the other if you own something, you generally have a right to sell it at what price you want and to who you want.

Does anyone have any info on this at all?

Thanks in advance everyone :)

Comments

  • Soot2006
    Soot2006 Posts: 2,185 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    How much is house worth on the open market?

    How much are you getting it for?

    Will you be needing a mortgage or will it be an outright purchase?
  • Reggie10
    Reggie10 Posts: 3 Newbie
    Soot2006 wrote: »
    How much is house worth on the open market?

    How much are you getting it for?

    Will you be needing a mortgage or will it be an outright purchase?

    Hi Soot2006,

    Approx £225k

    Low enough so it would be an outright purchase (sub £20k).
  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    She's going to sell you a house worth £225K for less than £20K?

    Sounds like she has money to burn!
  • Reggie10
    Reggie10 Posts: 3 Newbie
    G_M wrote: »
    She's going to sell you a house worth £225K for less than £20K?

    Sounds like she has money to burn!

    It's because someone has a charge on the property.
  • RAS
    RAS Posts: 36,587 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    She cannot sell it to you without discharging (paying) the charge. If it was joint ownership, this might be possible but sole ownership is different.

    You need good legal advice before you go any further.
    If you've have not made a mistake, you've made nothing
  • DVardysShadow
    DVardysShadow Posts: 18,949 Forumite
    RAS wrote: »
    She cannot sell it to you without discharging (paying) the charge. If it was joint ownership, this might be possible but sole ownership is different.

    You need good legal advice before you go any further.
    Let's be a little more precise. She cannot sell without the consent of whoever holds the charge. For normal sales, the lender would insist on the charge being redeemed. But I am being picky here, because of the apparent circumstances. If the lender thinks that OP is a better bet to pay the money back, this deal might be possible - if OP is actually agreeable to paying it back.
    Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam
  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Being even more picky... the existing Charge would still need to be paid off and a new Charge (ie mortgage in the OP's name) placed on the property.
  • Annisele
    Annisele Posts: 4,835 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    How much is the charge for?

    There are also potential deprivation of capital issues. If your mum owes anything to anybody, or if she claims/will be claiming means tested benefits, or if she needs care in future, or [some other things I've probably never heard of] then giving you £200k could be a very bad idea.
  • Notmyrealname
    Notmyrealname Posts: 4,003 Forumite
    And then there are issues of Inheritance Tax and CGT.
This discussion has been closed.
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