Father selling me his house for less than value?

MrRose78

My father has emigrated and he wants to sell me his house for less than the current market value. It is worth around 135k but he wants to sell it for 120k to me, effectively gifting me a deposit of 15k so I can get a mortgage on the property.

Is this legal and would either he or myself be subject to any financial obligations such as inheritence tax? Any help would be great thank you in advance

stator

It's legal. If he lives for 7 years after the gift it shouldn't matter for inheritence tax:
https://www.gov.uk/inheritance-tax/gifts

antrobus

stator wrote: »

It's legal. If he lives for 7 years after the gift it shouldn't matter for inheritence tax:
https://www.gov.uk/inheritance-tax/gifts

It may not matter for inheritance tax because the donor has emigrated and is therefore no longer UK domiciled. Of course, it still might matter in terms of whatever taxes apply in whatever jurisdiction he has emigrated to.

Mrs_pbradley936

You should ask about this on the Cutting Tax board because this is not about mortgages (I know that you plan to use the funds but that is not the point). You will get specialist help there. For instance there is a government department that sets the value of assets for tax purposes. Usually a couple of local Estate Agents valuations are OK but they do not have to accept them if they think you are up to something!

kingstreet

Using a price reduction as your deposit is accepted by a couple of lenders. It's known as a concessionary purchase and it's permitted only between close relatives, or landlord/tenant.