Complicated question re Parent buying us a house

mike_sedge

Good Morning

I have (what i think is) a complicated question re parents buying us a house. I'll give the situation details before i ask the actual question.

My Wife to be and I own a house which we are in the process of selling (6 months approx timescalle until advertising with agent)
We are beginning to view a couple of proerties and have seen one that we would really like to put an offer in on but are not in a position to sell ours quick enough

My parents were planning to gift us an amount of money to help us buy a bigger family home

Could my parents buy the house we have viewed for cash (they can afford it!!) and we have an arrangement where they gift it to us?

Thanks - happy to provide further detail if needed

getmore4less

why bother with mortgages just borrow all the cash off the parents and pay them back as and when.

mike_sedge

getmore4less wrote: »

why bother with mortgages just borrow all the cash off the parents and pay them back as and when.

What are the limits on borrowing from parents?

I we borrowed from them we'd be looking at borrowing in excess of £400k!! What are the tax/inheritance implications of borrowing that sort of money

TrickyDicky101

Would you actually be borrowing from them (if it is a gift then presumably you don't have to repay it)? Assuming this is the case it would be a PET (potentially exempt transfer) for IHT so nothing to pay on receipt and no IHT consequences if parents live for at least 7 years.

getmore4less

mike_sedge wrote: »

What are the limits on borrowing from parents?

I we borrowed from them we'd be looking at borrowing in excess of £400k!! What are the tax/inheritance implications of borrowing that sort of money

None.
They can lend you as much as they like.
No IHT implications.

if you pay interest then they pay tax on that.