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Buying daughter's house below market value.

Our daughter’s marriage has irrevocably broken down.
Their house (current value £160000) is held in joint ownership.
Her husband and she have agreed to sell the house to us for £100000 for a quick resolution, instead of placing the house on the open market, so she can continue to live in it.
Any legal pitfalls?
«1

Comments

  • Why not just pay him half the market price (£80k) to buy his half out, and then gift your newly purchased equity to her.

    Save yourselves £20k then?
  • TBagpuss
    TBagpuss Posts: 11,237 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Will you require a mortgage? If not, then it might be better to transfer the property to her sole name and for you to give or lend her the money to buy out her ex. Amnunequal division between her and her ex may well be reasonable, a sale at an undervalue might potemntially guive rise to later claims y her husbnad that he was misled or pressured too, effectively, gift you 60% of their joint property
    All posts are my personal opinion, not formal advice Always get proper, professional advice (particularly about anything legal!)
  • Guest101
    Guest101 Posts: 15,764 Forumite
    What's he getting out of this?
  • If I was him I'd be getting a lawyer immediately - what a rotten deal!
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Any legal pitfalls?

    Hopefully your daughter has legal counsel and isn't being short changed by this proposal.
  • tlc678910
    tlc678910 Posts: 983 Forumite
    Part of the Furniture 500 Posts Combo Breaker
    edited 22 September 2016 at 1:57PM
    Hi, If you buy the house in your name and already own a property be ready to pay 3% stamp duty (on top of any other due) as you will own a second property.
    Tlc

    Edit: not sure why you daughters partner would want to give up half of the additional 60K to save marketing the property.
    How much equity do your daughter and her partner have in the property? (After any mortgage). Can you pay him half of the equity they hold and take a joint mortgage with your daughter for the amount of the remaining mortgage owing. You can hold the mortgage/ownership so it transfers to your daughter automatically if anything happens to you.
    Tlc
  • shortcrust
    shortcrust Posts: 2,697 Forumite
    Eighth Anniversary 1,000 Posts Combo Breaker Newshound!
    How kind! You get to help your daughter and make £60,000 at the same time...
  • I don't really get this. Why £100,000 and who is the money going to? Are the contents of the house involved in the settlement?
  • It's not only the marriage that is breaking down here. Want to see daughter & grandchildren at all?
  • Marvel1
    Marvel1 Posts: 7,512 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Spin this around and assume it his parents doing this and he would continue to live there, how would you feel about this towards your Daughter?


    shortcrust wrote: »
    How kind! You get to help your daughter and make £60,000 at the same time...

    Which I assume will go the Daughter in the future and ex-husband £0
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