Buying Grandparents house for under market value.

Ben.

Looking for a bit of advice before we get too far into looking into something that may not be feasible.
Okay, my girlfriend and I are looking to buy her Grandparents house. They have offered it to us for 200k; which is 60k below the estate agents valuation. They have been trying to sell the house for 2+ years with no success. They’ve even acccepted a bid of 232k just to sell it, but that fell through.
Would this class as a gift? Where would we stand legally? What implications could we have in the future?

zagubov

While your'e waiting for replies which will mostly be saying things you'd prefer not to hear, you may want to brace yourself by reading these other threads on similar scenarios:
https://forums.moneysavingexpert.com/discussion/comment/72463515#Comment_72463515
and
https://forums.moneysavingexpert.com/discussion/comment/74521989#Comment_74521989

Crashy_Time

Ben. wrote: »

Looking for a bit of advice before we get too far into looking into something that may not be feasible.
Okay, my girlfriend and I are looking to buy her Grandparents house. They have offered it to us for 200k; which is 60k below the estate agents valuation. They have been trying to sell the house for 2+ years with no success. They’ve even acccepted a bid of 232k just to sell it, but that fell through.
Would this class as a gift? Where would we stand legally? What implications could we have in the future?

You need to get a proper valuation, the EA`s attempt is obviously wrong. Would you care if you are actually paying ABOVE market value?

elsien

Have to agree. 2 years on the market at 260K would seem to indicate that the market disagrees with the estate agents guesstimate.

Keep_pedalling

You need to get a proper valuation. It has probable not sold because it was over priced. Get it valued buy a RICS surveyor. Assuming it is valued more than £200k then the amount over £200 would be classed as a gift,

Any such gift has no emmediate tax implication, but anything over their annual allowances will stay within their estate for the next 7 years, so for their executors sake they need to keep a record of this gift with their wills.

lookstraightahead

Get a proper valuation but I don't think after two years tfwvorooerty will be worth much more than that anyway. Lots of properties are overvalued at the moment.

But your grandparents should be looking into their finances to ensure they tuck all the boxes.

getmore4less

Do your own research to find out what people are paying for houses in the area.

No need to pay anyone it's not hard.