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Advice on buying Parents house under value
edited 30 November -1 at 1:00AM in House Buying, Renting & Selling
16 replies 34.3K views
Hi, My Wife and I want to sell our 2 bed house, in which we have around 55k equity, in order to buy my parents 3 bedroom house for us to live in, which is valued at around 130k. The house is too big for my parents now and they want to move to rented sheltered accommodation. They owe around 36k on their mortgage and they have proposed to sell us their house under valued for around 75k. They will then be able to settle their mortgage and have a some pocket money left for holidays etc and we will have a 3 bed house for not a lot. My question is am I legally allowed to buy my mums house at this price? I have been told that it is illegal to buy/sell a house under its market value and it will raise and investigation by the HMRC. Is this true? I thought that the rule only applied if the house is valued at over the inheritance tax / stamp duty threshold, but everyone is telling me different things.. Please Help!
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