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Gifting to my son
HousingA
Posts: 38 Forumite
I want to gift my home to my son however I have 20k mortgage left.
My son wants to gift me 20k to pay off my mortgage and then later on I want to gift my son the house
Will this be treated as a transfer or equity as money exchange or as a gift because he gifted me the money to pay off my mortgage ?
My son wants to gift me 20k to pay off my mortgage and then later on I want to gift my son the house
Will this be treated as a transfer or equity as money exchange or as a gift because he gifted me the money to pay off my mortgage ?
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Comments
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He is in effect buying the house off you for £20k the rest is a gift.
Does he own another house?
Who will be living there one you give it to him
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Hellogetmore4less said:He is in effect buying the house off you for £20k the rest is a gift.
Does he own another house?
Who will be living there one you give it to him
He doesn't own another house and he and I will still be living in this house0 -
Maybe just sell him 1/2 the house for £20k gifting the rest of the 1/2.
That way you have security and he can't kick you out.
Why do you think giving him all of it is a good idea?0 -
Do you have any other assets and any financial plans to help your other child(ren) out?
Where is (are) the other(s) living?Mortgage started 2020, aiming to clear 31/12/2029.0 -
Be aware of the rules around gifts with reservations, ie giving away your house but still living in it. Not illegal in anyway but there could be tax implications. Not really possible to comment on whether it's advisable or not without more details of what the OP is trying to achieve. Maybe a good idea, maybe not - not enough information to know either way.0
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Gifting your own home away is almost always a really dumb idea, and I would love to know. Your reasoning behind this scheme.1
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With them both living there gifting 1/2 avoids the reservation element.Mickey666 said:Be aware of the rules around gifts with reservations, ie giving away your house but still living in it. Not illegal in anyway but there could be tax implications. Not really possible to comment on whether it's advisable or not without more details of what the OP is trying to achieve. Maybe a good idea, maybe not - not enough information to know either way.
But if he moves out there are other issues.
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The reason why I am gifting him the property is so he can get a new mortgage against the house
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Why do you no longer want to own your own home? How will you ensure you remain securely housed?0
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