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Can Dad help buy me a house?

Lindosbay
Lindosbay Posts: 6 Forumite
in House buying, renting & selling
I have £50,000 and my dad wants to help me to buy a house by giving me another £50,000 and I will then get a mortgage to fund the rest of the purchase price. I have no experience of this, so are we allowed to do this? Are there any pitfalls? Any advice on the best way to go about it?
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Comments

  • baby_boomer
    baby_boomer Posts: 3,883 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    If your dad died within seven years there could be inheritance tax to pay on the £50K gift (a PET or potentially exempt transfer) if his estate was above the IHT limit (currently £300K and rising to £350K).

    But it is allowed.

    Your father is only allowed to give away £3K in any tax year without the potential for inheritance tax.
  • nelly_2
    nelly_2 Posts: 17,863 Forumite
    10,000 Posts Combo Breaker
    Can he help me too please :)
  • thesaint
    thesaint Posts: 4,324 Forumite
    Part of the Furniture Combo Breaker
    Welcome to MSE,
    In a recent poll, I was voted the nicest person on this board.:o

    It is an honour to be thought as such and although I don't have much experience with your situation, I couldn't pass up the chance to say hi.:hello:
    I trust that someone will be along soon to help you.

    I hope you are not trying to get around the money laundering laws though, this is bad and we will not help you if this is the case.:naughty:

    Good luck
    Well life is harsh, hug me don't reject me.
  • wecanhelpu
    wecanhelpu Posts: 630 Forumite
    ...............And me
  • seven-day-weekend
    seven-day-weekend Posts: 36,755 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    How could it flout the money laundering laws?
    (AKA HRH_MUngo)
    Member #10 of £2 savers club
    Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton
  • thesaint
    thesaint Posts: 4,324 Forumite
    Part of the Furniture Combo Breaker
    seven-day-weekend wrote: »
    How could it flout the money laundering laws?

    I am not saying that our lovely new member is doing anything of the like, but, I know that when someone can't prove the origin of their money they have a 'relative' whom appears from nowhere to gift/loan them 10's of thousands of pounds.

    This is why the money laundering laws were produced?
    Well life is harsh, hug me don't reject me.
  • Rimo2021
    Rimo2021 Posts: 166 Forumite
    thesaint wrote: »
    I am not saying that our lovely new member is doing anything of the like, but, I know that when someone can't prove the origin of their money they have a 'relative' whom appears from nowhere to gift/loan them 10's of thousands of pounds.

    This is why the money laundering laws were produced?

    If the OP had said the 50K was to be handed over in cash you might have grounds for your suspicion. A 50K cheque leaves a 'paper trail'. That is why solicitors are not allowed to accept cash and money launderers buy houses in Spain.
  • Mrs_pbradley936
    Mrs_pbradley936 Posts: 14,573 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    I think it is quite common for parents to help children buy property. I would get a solicitor to draw up a Deed of Trust.
  • c4rly
    c4rly Posts: 3 Newbie
    I dont see that you are doing anything wrong, your parents are allowed to helpp you the only problem may be the inhertiance tax. go through your details with a property solicitor.
  • saunaboy
    saunaboy Posts: 162 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    can I be cynical & say the 'must be nice' bit.

    I've just spent 125k and my parents offered to give me £100 towards a new washer...
This discussion has been closed.
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