Buying my mums house to renovate

1deano87

Hi, I'm new to the whole property ladder thing so am after a bit of guidance if possible.

My mum and dad divorced about 10yrs ago and my mum was left with the 3 bed family home, which over the years has deteriorated and in much need of a refurb.

The house was bought for £112,500 in 1997 and other identical houses on the street have recently sold for around £300,000, but in its current condition would not be able to pay off her mortgage and have much left.

My mum is willing to sell me the house for £172,500 and I am willing to put £20-30,000 to bring it up to scratch and ready to sell.

My question is...What possible taxes/charges could I incur by doing this?

Could a better option be for me to leave the house in my mums name, put my money into making the house sellable and take a cut from the sale price at the end? Are there any charges involved this way?

Any help or advice would be much appreciated.

Thanks!

Old_Git

1deano87 wrote: »

Hi, I'm new to the whole property ladder thing so am after a bit of guidance if possible.

My mum and dad divorced about 10yrs ago and my mum was left with the 3 bed family home, which over the years has deteriorated and in much need of a refurb.

The house was bought for £112,500 in 1997 and other identical houses on the street have recently sold for around £300,000, but in its current condition would not be able to pay off her mortgage and have much left.

My mum is willing to sell me the house for £172,500 and I am willing to put £20-30,000 to bring it up to scratch and ready to sell.

My question is...What possible taxes/charges could I incur by doing this?

Could a better option be for me to leave the house in my mums name, put my money into making the house sellable and take a cut from the sale price at the end? Are there any charges involved this way?

Any help or advice would be much appreciated.

Thanks!

If you buy it as your main residence and then sell there is no tax. You will have to pay solicitors fees to buy and sell .
Do you need a mortgage ,if so you will have fees and a mortgage to pay until it is sold.
You say your mum is willing to sell for £172,500 is this the market value . Where will your mum live after you have bought/ sold .

paddedjohn

It sounds like a lot less hassle to just lend your mum the money to refurb the house and then get it back with interest when it's sold. If you sell within a few months of buying (with a mortgage) any new buyer would have difficulty getting a mortgage.

junglejim2

Are you sure 20 to 30 k investment in the property will mean the property will sell for circa 300k?
Sound a little unlikely to me.
Or is your mums selling price very cheap?

Soot2006

junglejim2 wrote: »

Are you sure 20 to 30 k investment in the property will mean the property will sell for circa 300k?
Sound a little unlikely to me.

Indeed ... but if so then surely best to sell it for £220k or something as a bargain without any hassle!