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Can parents sell house to me cheap?
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Many thanks for all your replies.
At some point my parents will sell the property to me for £192k (which is the price they paid for it minus £50k). So might capital gains tax be payable on the full value of the house or just the part they 'gifted' me (ie £50K)?
My parents pushed for this to happen - my dad is astute but relaxed with money and I have been told we can worry about the transfer to me at a later date and die within 7 years? They are both healthy 65 year olds.
I will urge my dad to speak to his accountant (he has one for his company) as the advice.
Many thanks for the info about TSB mortgages also. And for all the other replies, I have taken note of everything.
R0 -
The Capital Gains Tax will be based on the difference between what your parents paid for the house and the market value when they transfer ownership to you, not what they sell it to you for.0
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A better way to have done it would be to have arranged a private mortgage between you and your parents where the property was put in your name with your parents having the 1st charge against the property until the mortgage was paid off.
This is a very straightforward way of handing the issue.
RobDoubleu - is there any reason why your parents wouldn't do this?0 -
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This is a very straightforward way of handing the issue.
RobDoubleu - is there any reason why your parents wouldn't do this?
Hello.
I think they would be happy to do this. It was not considered as an option to be frank. I was told by the agent that our status as cash buyers was what 'won' us the bidding war! Is it too late now?0 -
RobDoubleu wrote: »I was told by the agent that our status as cash buyers was what 'won' us the bidding war!
Have you bought the house using your parents' money or have your parents bought the house?0 -
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RobDoubleu wrote: »Many thanks for all your replies.
At some point my parents will sell the property to me for £192k (which is the price they paid for it minus £50k). So might capital gains tax be payable on the full value of the house or just the part they 'gifted' me (ie £50K)?
My parents pushed for this to happen - my dad is astute but relaxed with money and I have been told we can worry about the transfer to me at a later date and die within 7 years? They are both healthy 65 year olds.
I will urge my dad to speak to his accountant (he has one for his company) as the advice.
Many thanks for the info about TSB mortgages also. And for all the other replies, I have taken note of everything.
R0 -
Cheeky_Monkey wrote: »Do you think that only unhealthy old people die?
Of course not. But unhealthy old people are more likely to.0 -
Do you think that only unhealthy old people die?
Sadly an accident could befall your parents or sudden illness - there are no guarantees.
It is a pity that your parents did not lend you the money (against a charge on the property) so that you could be the cash buyers in the pole position to buy the house.
You might check whether the house can be transferred to you now at full market value against a private mortgage from your parents who should take financial advice?
Your parents could make it capital repayment only so that the gift would be the interest you will not be paying?
Bearing my first comment in mind, you and your wife would take out life insurance to cover the immediate repayment of the loan to your parents in the event of untimely death....0
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