Can I sell a £250000.00 house to my son for £25000.00 with a gift aid

Seafairy

I am not sure that I understand what the gift aid means, my son's bank are willing to give him a mortgage for this amount including this gift aid. Any information would be helpful. Thank you

kingstreet

I don't know what this "gift aid" means either. My understanding of gift-aid is a donation to a charity which is grossed up by the income tax you paid on the money when you earned it.

For example;-

https://www.gov.uk/donating-to-charity/gift-aid

Now, if they are talking about "family purchase at undervalue" or "family equity gift" or something like that, they may be a little closer to reality.

Selling a £250k property for £25k may be a little too much though. One lender who does it will only accept a gifted sale at no less than 80%, to avoid such extremes.

Expect the solicitor handling this to be all over it like a rash. You'll have to pay for indemnity insurance against insolvency and if you die, HMRC are going to be looking round corners to add the true value of the property back into your estate for IHT purposes.

mr-bob_2

I think you mean they'll give him a mortgage for 25k but won't require a deposit? Ie the rest of the real value is the deposit.

Wywth

I'll give you £30k for it (stc) :money:

SternMusik

Some good replies in your other thread:

https://forums.moneysavingexpert.com/discussion/4534425

I assume you mean gifted equity acting as deposit? Something like an undervalue transaction involving a family member? The mortgage experts on here should be able to help.