FTB (with parents lending some, and sharing some equity).

The_J

Option 1 is the easiest by a very long way.

CLAPTON

either is possible


however you may wish to note that if your parents own part of the house and do not live in it; then when sold there is a potential capital gains tax liability on them.

at the moment, I guess one isn't too concerned about cgt but it would work like this

suppose house purchased for 200,000
you own 50% and each parent owns 25%

suppose it is sold for 300,000 in a few years
then the gain is 100,000
your share is cgt exempt as you live there so no tax
but each parent has a 25k gain
they each have a cgt allowance of 10,600 so taxable gain is
25,000 - 10,600 = 14,400 which is taxed at 18% or 28% depending upon their financial situation

KingJohn_2

Hi there it seems you are in a similar situation to me, looking in London as a FTB albeit with a larger budget. A bit off topic to this thread but I just started my own on the house buying renting & selling board so would love to hear your experiences seeking properties, locations etc.

Cheers!
S

betmunch

kingstreet wrote: »

Sorry bm, I've just realised, I didn't intend my first post to be aimed at you and it could be construed that way.

I should have mirrored the OP's use of "share of the equity" instead of using your phrase "equity share."

There was no criticism implied at what you were saying. I was more thinking aloud, TBH.

No offence was taken at all, I do just like to explain my point, being a pedantic tw*t sometimes!

Yorkie1

Be aware that your parents will need to sign a letter, if not a witnessed statement, to say to the lender that it is a gift.

If the true arrangement is that it is not a gift, then that constitutes fraud on both your part and that of your parents.

You may not get found out but do you really want dishonesty to be part of your application?