Buying parent's house, best option?

Oxid8uk

My ex has moved in with his parents temporarily until he finds a place of his own to buy. He's struggling to find something that suits what he is after.

His parents house is a family home and offers everything he wants. They have therefore been discussing him having the house and them downsizing and buying a bungalow.
Their house is mortgage free, worth approximately £350k. Bungalows they are looking at are in the region of £270k. They initially thought that my ex could maybe buy the bungalow but his parents live in it and he stays in their house, but his mortgage lender has told him that would not be allowed.

What is the best and quickest way to go about this? I see three options:

1) They transfer the house into my ex's name first and then he remortgages it to release the funds to give to his parents so they can buy with cash; or
2) He buys the house from them as if it is a normal transaction, and the sale of house/purchase of bungalow completes at the same time?
3) He buys the house from them as if it is a normal transaction, and his parents continue living with him until they purchase somewhere new - they would then be cash buyers and no chain.

Or are there other options?

Also, my ex thought that by transferring his parents home into his name first that he wouldn't have to pay stamp duty but I've told him that isn't correct. Am I right?

TIA

user1977

1. Not sure what he (or you) think the advantage of doing it that way would be? Other than the stamp duty suggestion, which you're right in thinking is a load of nonsense.
2. Yes, that seems simplest.
3. That's already been ruled out by the lender, hasn't it?

Tiglet2

Oxid8uk said:

My ex has moved in with his parents temporarily until he finds a place of his own to buy. He's struggling to find something that suits what he is after.

His parents house is a family home and offers everything he wants. They have therefore been discussing him having the house and them downsizing and buying a bungalow.
Their house is mortgage free, worth approximately £350k. Bungalows they are looking at are in the region of £270k. They initially thought that my ex could maybe buy the bungalow but his parents live in it and he stays in their house, but his mortgage lender has told him that would not be allowed.

What is the best and quickest way to go about this? I see three options:

1) They transfer the house into my ex's name first and then he remortgages it to release the funds to give to his parents so they can buy with cash; or
2) He buys the house from them as if it is a normal transaction, and the sale of house/purchase of bungalow completes at the same time?
3) He buys the house from them as if it is a normal transaction, and his parents continue living with him until they purchase somewhere new - they would then be cash buyers and no chain.

Or are there other options?

Also, my ex thought that by transferring his parents home into his name first that he wouldn't have to pay stamp duty but I've told him that isn't correct. Am I right?

TIA

1.  It is not a Transfer of Equity (I think this is what you're referring to), because both parents would be coming off the title and your ex going on the title, rather than one being removed and one added.  It is still a sale as far as conveyancing goes, so would be treated as a sale, not a transfer.  Stamp duty would be due.

2.  Yes, this is the best option and simplest.  Stamp duty would be due.

3.  Your lender may not agree to your parents being 'occupiers' but not on the deeds or party to the mortgage.  Stamp duty would be due.

MovingForwards

1 would also prevent ex from obtaining a mortgage against the property for 6 months.