unexpected house purchase

dimbo61

Is your Daughter living in the house on her own?
Or renting with others? Does she plan on staying long term in the area?
Or following her career and maybe moving to London or the South east where the jobs are?
What condition is the property in? Three storey? HMO licence?
Are the local universities building huge new tower blocks to house all the students ( Many universities are spending millions right now ) Think £9000 per student per year

dimbo61

If the property is in her name there is no CGT to pay BUT have you got other kids?
You have an £11,000 CGT allowance and renting relief of £40K as well so CGT is not a problem.
There are MANY MANY other problems to worry about

00ec25

dimbo61 wrote: »

...and renting relief of £40K as well

incorrect

if the parents buy it in their name then they will not be living in it as their main home, and so cannot claim letting relief as that only applies to what was once your main home

OP you have not answered the earlier question about re-mortgaging your current property and buying daughter's place for cash. A residential mortgage will be much cheaper than a BTL and since it is your daughter who will have to pay you rent then I would have thought you would want to charge her as little as possible - bearing in mind of course that any rent you get will be subject to income tax if you make an overall net profit from your LL venturing!

trailingspouse

Really grateful for all the replies.

Will try to answer as many questions as I can.

Daughter is living in the property with her child. No other occupants. It has a small double bedroom and a very small single bedroom, a living room, a kitchen and a bathroom. And that's it. There's a tiny back yard, and no parking. It's in a lovely area

We are helping her financially as she is doing a Masters degree and doesn't get much in the way of benefits. What we would probably do is reduce the amount we give her per month, rather than charge her rent as such. She's currently paying £500 per month.

We wouldn't be able to re-mortgage as we only got our own mortgage a year ago.

I fully take on board what you are saying about how the other children would feel about it, and I think that would be the biggest barrier to us doing this. To be fair, the others don't need our help any more (and they have had their own help in the past, but not to the extent of being bought a house!!).

Have a good Easter. I'll get back to you once I know how much the property is going to be marketed for. If it's too expensive, it'll cease to be a problem!!!