Why can i not purchase my family home for less?

Mojisola

aviii wrote: »

What is it that I am not understanding..?

Your parents can do this but why they would want to put their security at risk isn't easy to understand.

Thrugelmir

MacMickster wrote: »

Deprivation of assets

Certainly worth googling if it's something you've never heard of.

The other issue is that if you default on the mortgage for any reason at all. Your parents still have a financial interest in the property and therefore a right to reside. Lenders will therefore quite rightly shy away from such arrangements. As simply too much hassle and risk attached.

If you buy the property at an undervalue of £210k. Then you are also leaving yourselves exposed to a sizable CGT bill when you eventually sell the property.

Why don't you and your siblings simply pay the mortgage on your parents behalf. By far the easiest route and most tax efficient .

Mojisola

Thrugelmir wrote: »

Why don't you and your siblings simply pay the mortgage on your parents behalf. By far the easiest route and most tax efficient.

If you get the money you give them for the mortgage written up as a proper loan, it will protect that amount from any future residential care payments.