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buying grandads house at discounted price

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Night_watcher
Night_watcher Posts: 2 Newbie
in House buying, renting & selling
hi......

my grandad has offered me his house...its worth around 150k.... i cannot get a mortgage for this amnount so he has offered it to me at 100k..which i can afford

the mortage would b joint between me and my girlfriend

because the house is worth 50k more than i would buy it for.....

would i b done for some kind of tax..........as he is kinda gifting me 50k

the other thing is he would continue to live in the house until.. he either dies or has to go to a home

im not very clued up on this kinda thing ...i just want to get things straight in my head...what if anything i may b liable for in the future

thanks

Comments

  • margaretclare
    margaretclare Posts: 10,789 Forumite
    No, I don't think so.

    We (that's my late first husband and I) did a similar thing in 1990 when we wanted to move from a Pennine cottage to an Essex bungalow. We sold the cottage to family members at a price they could afford i.e. a price they could get a sub-prime mortgage for, effectively giving them some £30K of equity. No questions were ever asked about tax etc.

    Ah. I've just noticed - he's going to continue living in the house for as long as he needs to. That puts a whole different complexion on the situation and you need expert help. So where are you going to be living, then?

    Margaret
    [FONT=Times New Roman, serif]Æ[/FONT]r ic wisdom funde, [FONT=Times New Roman, serif]æ[/FONT]r wear[FONT=Times New Roman, serif]ð[/FONT] ic eald.
    Before I found wisdom, I became old.
  • Optimist
    Optimist Posts: 4,557 Forumite
    Part of the Furniture
    Beware if the discount is substantial and he does have to go into a home eventually, it might be looked on as a deliberate deprivation of assets if he then needs to claim for assistance or any means tested benefits
    "The whole problem with the world is that fools and fanatics are always so certain of themselves, but wiser people so full of doubts."

    Bertrand Russell. British author, mathematician, & philosopher (1872 - 1970)
  • Night_watcher
    Night_watcher Posts: 2 Newbie
    we wil continue to live in the flat we have (as my errmm wealthy mother has offered to pay the rent until he dies or moves to home) he has a substanial amount of money to use if he has to move to a home.
  • margaretclare
    margaretclare Posts: 10,789 Forumite
    Optimist wrote: »
    Beware if the discount is substantial and he does have to go into a home eventually, it might be looked on as a deliberate deprivation of assets if he then needs to claim for assistance or any means tested benefits

    Obviously this is completely different from the scenario I described back in 1990. I misunderstood!

    Margaret
    [FONT=Times New Roman, serif]Æ[/FONT]r ic wisdom funde, [FONT=Times New Roman, serif]æ[/FONT]r wear[FONT=Times New Roman, serif]ð[/FONT] ic eald.
    Before I found wisdom, I became old.
  • margaretclare
    margaretclare Posts: 10,789 Forumite
    Night_watcher wrote: »
    we wil continue to live in the flat we have (as my errmm wealthy mother has offered to pay the rent until he dies or moves to home) he has a substanial amount of money to use if he has to move to a home.

    I can't see what the point is, then. He's going to live in his house, your mum is going to pay his rent, you're still going to live in your present flat.

    Can't see why everyone can't just carry on as they are! Or am I missing something blindingly obvious here?

    Margaret
    [FONT=Times New Roman, serif]Æ[/FONT]r ic wisdom funde, [FONT=Times New Roman, serif]æ[/FONT]r wear[FONT=Times New Roman, serif]ð[/FONT] ic eald.
    Before I found wisdom, I became old.
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