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2nd house purchase (from mum) buy to let

sukh38
sukh38 Posts: 115 Forumite
First Anniversary First Post Name Dropper Combo Breaker
in House buying, renting & selling
Hi all,

My mum wishes to sell me her house shes been renting out the value is 125k but she said i could buy it for 90k to help pay less stamp duty.

Is there any tips you know of on how I can do to avoid fee, legal fees stamp duty.

I was thinking of putting my name on the deeds then re mortgaging then taking my mums name off the deed.

Many thanks

Comments

  • G_M
    G_M Posts: 51,977 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    Is there currently a mortgage?

    From what you say, you do not have £90K so will need a mortgage yourrself?

    Avoid conveyancing fees by dong the conveyancing yourself - though if you need a mortgge you'll still have to pay the lender's solicitor.......

    Avoid mortgage arrangement fees by finding a lender who does not charge them (and/or who pays the legal or Valuation fees).


    Avoid SDLT by paying bbelow the threshld. Be aware HMRC look more closely at sales on/near the threshold to ensure people are not evading SDLT.
  • 00ec25
    00ec25 Posts: 9,123 Forumite
    Combo Breaker First Post
    G_M wrote: »
    Avoid SDLT by paying bbelow the threshld. Be aware HMRC look more closely at sales on/near the threshold to ensure people are not evading SDLT.
    be more careful that HMRC will look at sales between connected persons where the "bargain is not at arm's length" and the price paid (the chargeable consideration) is artificially low for tax avoidance purposes only

    https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm21560
  • 00ec25
    00ec25 Posts: 9,123 Forumite
    Combo Breaker First Post
    sukh38 wrote: »
    IHi all,

    My mum wishes to sell me her house shes been renting out the value is 125k but she said i could buy it for 90k to help pay less stamp duty.

    Is there any tips you know of on how I can do to avoid fee, legal fees stamp duty.
    has your mother allowed for the CGT she will pay given it is a rental property and you are connected persons?
    sukh38 wrote: »
    I was thinking of putting my name on the deeds then re mortgaging then taking my mums name off the deed
    seek professional advice, you have no idea what you are doing
  • Tom99
    Tom99 Posts: 5,371 Forumite
    First Post First Anniversary
    sukh38 wrote: »
    I was thinking of putting my name on the deeds then re mortgaging then taking my mums name off the deed.


    [FONT=Verdana, sans-serif]Sounds far to complicated, why not just buy the property at £90k with a new mortgage in your name then on the day of completion your Mum pays back her mortgage if any.[/FONT]
    [FONT=Verdana, sans-serif]Mum will be liable for CGT based on a sale at £125k whatever figure she sells to you at because you are connected persons.[/FONT]
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