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Need some advice
borch_2
Posts: 2 Newbie
The situation I'm in as follows. My parents were going to sell there property and pay off their mortgage with the sale and move to their other home and live there days out there. However my dad has offered me the house for 60k (its worth around 400k) and I could never afford that. Now I know u can't sell the house below its value. So he said he could give me his debt in the form of me getting a new mortgage out on it for the same as his (36k) and then i could up the mortgage from 36k to 60k to give him the other money he requires? would this cause a problem with tax etc. They are then looking to live in the house for a few more years while i pay the mortgage off.
Borch
Borch
0
Comments
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You can sell a house for what you want.
The government will expect tax on its market value so 3% stamp duty. There may be a potential problem with inheritance tax if your parents didn't survive 7 years from the gift.
You could get a 60k mortgage straight away = purchase price 400k, gifted deposit = 340k mortgage = 60k. Not all lenders will accept gifted deposits but with your low loan-to-value ratio you shouldn't have a problem.
Your only other issue will be CGT on sale, if you have not lived in the property thoughout your ownership of it.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
would CGT only apply when i Decide to sell it on?
Borich0 -
would CGT only apply when i Decide to sell it on?
Borich
Yes and the longer you have lived in it as your home the less CGT.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0
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