Second Home Insurance

charlie_S_2

Hi,


I have a second home that my mother gifted to me under the 7 year rule. She still lives in the house, my question is what type of House insurance do I take out.
As she is my mother, she is not charged any rent. What type of buildings and contents insurance do I get ? Am I classed as a landlord?

Pixie5740

What 7 year rule? Did your mother take advice before doing this? My money is on "not."

G_M

The 7 year rule applies to Inheritace Tax. However as this is a 'gift wih reservation' (ie she still live there) I believe it does not apply & the property will be included in the Estate for IHT purposes irrespecive of how much time has passed. .

I'm guessing this gift was agreed also partly to attempt to avoid care costs if needed down the line? Read up on 'deprivation of assets'. Almost certainly the Local authority will include the property when assessing her assets to check eligibility for means tested care support.

Yes, you're a landlord - get LL insurance.

Bear in mind that now the property is in your name, but not your main residence, you will have to pay Capital Gains tax if/when you sell.