Want To Leave Property To Son - best way to do this?

GGG777

*Please move if in wrong place*

I wonder if anyone can advise?

I moved up to Scotland in 2000 to be with my partner leaving a property in England that I bought in 1994. My dad moved in when I left and there is a small mortgage left on this property that I am still paying off. I have recently split with my partner and moved to a new home (in scotland.) I would like to leave this English property to my son (who is just 18 months old.) Obviously my dad can live there as long as he wants (he is in his 70's)

My questions are: is there any tax gain from giving it to him now and
can I do this at his current age and with a mortgage still on the property? (I could possibly re-mortgage my scottish property and pay off the English one.)

If I or my son later sold the property would I/he have to pay capital gains since it was used as a family home?

fengirl_2

Is your dad paying you rent?

CLAPTON

it seems a bit of a bizarre thing to want to do.

if you have more children would they feel a bit left out if the first born was given a house and they were not.

what are you trying to achieve? there may be other ways of achieving your objectives

margaretclare

How do you know that your 18-month old son is going to want this house? It'll be another 15-20 years before he even starts to think about a house of his own! What's going to happen to it if your Dad dies in the meantime and no one is living in it? What about repairs, maintenance etc?

I agree with Clapton above.

GGG777

Very much doubt I will have any more children. Getting far too old and being a single parent a) far too tired and b) don't have time to meet anyone else!

Yes, I can appreciate my son might not want it in 15-20 odd years time but it would be a good start and he could always sell. Long may my dad live there but if it becomes vacant then we could rent it out.

I am confused over whether it would be better to give it him now (perhaps in stages - not sure if possible?) or as a whole when he is older. I had assumed I could not just gift him such a large anount without incurring capital gains.

Also if either of us decided to sell what would the capital gains situation be?

If there is a better way of doing this I would love to hear.

fengirl_2

Your capital gains position depends on whether or not your dad is paying you rent.

GGG777

Nothing official but he occasionally gives me something towards mortgage- not as much as I would have asked for if I was renting it out to anyone else