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Selling to Family - Transfer of Funds
Morning All,
Been sometime since I have needed some advice and hoping I can get some guidance here.
I have decided to sell up and move on, there is only me and the dog now and a 3 bedroomed house is just too much.
My daughter is purchasing the house and a price has been agreed and mortgage offered by Barclays.
She is going through a broker, so they are managing everything for her and providing the legal side.
What I need to know, is do I need to get a solicitor in order to receive the agreed funds, or can that all be done by her side paying into my bank account.
I don't dont have a mortgage on the property, and is owned outright by me, and is Freehold.
Appreciate any help or advice. Just trying to avoid feeding the legal pockets with the ridiculous amount they charge.
Comments
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Your daughter's solicitor can send the proceeds of sale direct to your bank account. I assume you are handling the sale yourself ie not employing a solicitor
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You don't have to have a solicitor, but you'll still need to prepare/review contracts, liaise with the buyers' solicitor, approve the transfer and deal with any legal complexities. Plus, you won't have the insurance should anything go wrong during the process. Obviously risks are much lower given its a family sale, but for a few hundred pounds it might be worth the peace of mind.
2 -
Thanks for the quick responses, by the sounds of it I will be better off getting a solicitor to handle it if there is going to be a load of legal stuff involved.
Didnt think it would be simple…….. Thanks
0 -
Agreed price needs to be market price not some privately agreed cheap (or inflated) price.
1 -
Depends on what daughter's mortgage lender makes of it, a concessionary price may be fine. But sounds like price has already been agreed by everyone.
1 -
All very interesting but HMRC will form their own view (IHT, CGT, Income tax) if the documented figure looks dodgy. Best regards to all.
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The figure cannot "look dodgy", any "dodginess" would be a discrepancy between the declared figure and the actual consideration.
1 -
Often happens that a property gets sold at a reduced price when it is being sold to family - often where there is a lender concerned this is dealt with by way of a gifted deposit being assumed and documented for the reduction.
🎉 MORTGAGE FREE (First time!) 30/09/2016 🎉 And now we go again…New mortgage taken 01/09/23 🏡
Balance as at 01/09/23 = £115,000.00 at 31/12/23 = £112,000.00
Balance as at 31/08/24 = £105,400.00 at 31/12/24 = £102,500.00
£100k barrier broken 1/4/25
Balance as at 31/08/25 = £ 95,450.00 at 31/12/25 = £ 91,100.00
Balance as at 31/08/26 = £ 84,500.00
SOA CALCULATOR (for DFW newbies): SOA Calculatorshe/her1 -
I did have to sign a "Gifted Certificate" to the lender to confirm what my intentions were. They then offered offered the mortgage based on that. Nothing dodgy about the deal at all, just trying to help my daughter get a foot on the ladder, in this day and age where so many young are crippled with costs and living at home.
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That's all fine for mortgage, but tax (income, CGT, IHT etc etc etc) is an entirely different matter. Sigh!
1
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