Buying parents house

yamyam0909

First ever post so please be kind !!

I've been living with my parents after selling my house a year ago. They have now decided to down size and have offered to sell me there house with a bit knocked off/gifted. It's current value is around £280,000. I can only affored to buy it for £250,000 slipping under the stamp duty threshold.

Is this legal or will I have HMRC chasing me at some point ?

Secondly, I'm trying to get the cheapest mortgage possible so the LTV is important. Will the lender value the house based on the purchase price or it's true value ?

Any help and advice gratefully recieved.

Dave_Ham

Come on - have a think about what you are seriously asking - can you declare the price at £250k to HRMC, but it would be handy to have a mortgage based upon £280k??

So, you have 2 options:

• Have the property sold to you for £250k incurring 1% SDLT. You will require at least a 10% deposit for mortgage purposes. Given the closeness of actual and sale price, it is unlikely anyone would pursue you/parents in the future
• Buy the property at £280k and therefore pay 3% SDLT. You could have part of this as a gift lowering the price to £250k or whatever your parents will gift you and therefore use this as part of your deposit for a mortgage. If there is a big discount and your parents require care this may effect some of the considerations then, but check this out formally.