Selling my home

dj78

I purchased a property this year with inheritance money from a deceased relative and additional money from my father provided as early inheritance from his estate. I'm now looking to sell the property, and am looking to use a cash buying company that will ultimately buy it for less than the true market value. It has been suggested by my mother that my father could ask for me to pay back the money he provided to help buy the property - is he legally entitled to it? Could he sue me if I refuse?

Also, would I have to pay capital gains tax if the property is being sold for less than the amount it was purchased? Bit of a stupid question but I have no experience at all of selling a property.

Thanks for any advice you can give.

AstroTurtle

Did he give you the money specifically to help you buy a home?

Think your question needs to be morally would you do that to your father?

AdrianC

CGT first, as that's the easy one. Did you live there while you owned it? Will there be a capital gain to tax...?


As for your father - well, I assume that he assured your solicitor at the time of purchase that it was an unreserved gift, not a loan...? But how far do you fancy pushing your relationship with him?

lisyloo

and am looking to use a cash buying company that will ultimately buy it for less than the true market value

These companies are well known to drop the price at the minute on desperate people.
If you need to sell quickly go to auction.

is he legally entitled to it? Could he sue me if I refuse?

He is entitled to ask of course but if it as a gift then no he's not entitled to it back. Presumably there isn't any paperwork you signed saying it was a loan??

Also, would I have to pay capital gains tax if the property is being sold for less than the amount it was purchased?

There is no CGT on your home.
also the gains tax is only paid on gains not losses.


Can you tell us why you are selling so soon?

Mojisola

dj78 wrote: »

I purchased a property this year with inheritance money from a deceased relative and additional money from my father provided as early inheritance from his estate.

I'm now looking to sell the property, and am looking to use a cash buying company that will ultimately buy it for less than the true market value.

I can understand your father being upset that you're throwing away money by selling the property under value.

He can't claim the money back - but he could make sure you don't inherit anything else from him.

dj78

To clarify, the money from my father was a gift, not a loan. Morally, he has more than stuck the knife into our family in the past, let's just leave it at that. All I need to know is whether he legally has a leg to stand on in terms of contesting the money. And yes, I have been living there since I've owned it. I can't go into why I'm selling so fast other than to say the funds are of vital necessity. Thank you for your advice.

AdrianC

dj78 wrote: »

To clarify, the money from my father was a gift, not a loan.

Then he can't reclaim it.

Morally, he has more than stuck the knife into our family in the past, let's just leave it at that.

However, he's also clearly given you a substantial financial gift...

And yes, I have been living there since I've owned it.

Then there's no tax on any capital gain. If there is a gain, in such a short time and with an under-value sale.

lisyloo

I can't go into why I'm selling so fast other than to say the funds are of vital necessity.

Ok, but these quick sale companies have a terrible reputation for dropping the price at the last minute for whatever reason.
The general advice is to go to auction.

babyblade41

ImO avoid these companies like the plague , they are there to give you well below the market value and no of one instance to change the offer price right at the very end .

Morally (I know not asked for but..) if this man is what you believe him to be then not sure why you would accept his quite generous gift... this makes you come across as very similar ...sorry could be wrong, but posting on a public forum was alway going to get judgement.

CGT is only payable when it is not your main residence and as in the wording (capital Gains) so there is no gain as you are selling it at a lot lower price and it is your main residence

Families involved with money gets complicated as unless there is a written contract stating how much , when and the date the loan is to be paid back by between both parties and signed by both then no, he can't claim it back

Why not just check comparable prices around and drop the price by quite a lot and do it that way... The route you want could end up in disaster and why would anyone want to lose such a lot?.

If money is needed desperately why not get a loan and maybe rent the property for a while until circumstances improve.

Lots of ways round without resorting to your way