Advice - Part Buying Parents Property

falaise86

getmore4less wrote: »

Will it become yours?

What if you want to move?

When do you mean "Will it become yours"? Do you mean as inheritance?

If we want to move the parents are happy to sell up the whole thing?

Mojisola

falaise86 wrote: »

Parents would like to keep a "stake" in the property to be able to share across other children if anything ever happened to them

falaise86 wrote: »

Not necessarily, there is currently enough estate to share amongst siblings that wouldn't mean us needing to move or sell.

Your parents must be anticipating things will change if they are keeping a stake in the property for the given reason.

getmore4less

Important bits missing from the first post.

parent don/won't live there are you are planning to


If they want to retain a share you need to decide how the maintenance will be shared.
..............................
if they don't need the money why don't they just sell the place to you and carry the debt themselves rather than you getting a mortgage

You paying what you can, if they don't charge interest not tax and a steady income stream from you paying back the capital.

getmore4less

falaise86 wrote: »

When do you mean "Will it become yours"? Do you mean as inheritance?

If we want to move the parents are happy to sell up the whole thing?

highlighted the relevant bit in my post.

will it become you home seems it will and that is an important fact.

falaise86

getmore4less wrote: »

highlighted the relevant bit in my post.

will it become you home seems it will and that is an important fact.

Yes it will.

00ec25

lets start again
1. your parents own a mortgage free property which they neither live in nor let (its their "second home")
2. for unknown reasons they now wish to sell part of that property to you
3. you will live in the whole property as your own main/only home
4. you will pay full market price for the share of the property you are buying and will need a mortgage to do so
5. you have siblings and when your parents die their residual share of your home will form part of their estate. parents will must be explicit on how the property will be dealt with in terms of how that share if converted into cash that can be distributed to the siblings.

• your parents will be liable to CGT, you and they already know that. Why they think this is a good idea is unclear.
• you need to get the property professionally valued so as to determine what price to pay them. You can play games by asking the valuer to give a price for a part share (sum of the parts is less than the whole in that case) or for "quick sale" (low value) or for "inheritance purposes" (low value) or "market value" (a figure it may actually never achieve at sale). Any discount to full market value will have tax implications for parents' IHT, and may upset your siblings if that "early" inheritance is not adjusted for in your share of the estate when the parents do die
• if you pay "full" value then parents have converted an asset into cash and that is that. If parents then spend the cash before they die no one has lost out on their inheritance nor had an early inheritance that the others missed.
• as you need a mortgage, you will have to use a solicitor to do the conveyancing. You will struggle to find many lenders willing to accept owners not party to a mortgage and will almost certainly need to use a mortgage broker to find such
• it may be a lot easier for the parents to simply sell you the whole house, not remain owners of it and account for any discount they give you (because you cannot afford to pay for 100% ownership)under the respective implications that has for CGT, IHT and deprivation of capital. How much you then get as your inheritance when they do die, given you say the rest of their estate is sufficient to provide an inheritance for your siblings in due course, would also need to be adjusted