We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Buying house from father
Options
Tgall1
Posts: 2 Newbie
Thinking of buying family home from father, at moment it is going to be left to me and two sisters but everyone as agreed to let me buy it at below market value and cater then give some money to sisters. What’s the best way to go about this ? Dad to sell to me and me get a mortgage to pay him or is their a better way of going about it.
Thanks
Tony
Thanks
Tony
0
Comments
-
Where is dad going to live after the sale?0
-
There are lots of things to consider, one of which is where will your father be living once you buy the property? If he needs to claim benefits or if he requires care soon then selling his house at 2/3 value could have consequences further down the line0
-
Father is staying in property with me ? I’m also worried about tax would dad have to pay tax on the money he gets for sale and would I have to pay a gift tax ?0
-
* you would pay SDLT on the purchase price
* he'd have no tax to pay - though it might affect any benefits he claims
* there's no 'gift tax'
* if below market value then the 'gift' element would remain in his Estate if he died witin 7 years, for Inheritance tax
* if below market value then the council would consider the gift element as 'deprivation of assets' if he applied for funding for care (eg a care home)
* if you need a mortgage, the lender might be concerned about him living there (harder to evict him if you default) though I think you can get him to sign something. Speak to a mortgage broker.
* but (as per the point above) he is making himself very vulnerable by selling to you - does he have other assets? Savings? Another property?
* what if you got married? Moved in a boy/girlfriend? Would he be happy sharing? Worse, what if you got divorced and your ex took half the house? He'd be homeless....
There are downsides for him - so what is the purpose of this arrangement? What are you, and he, trying to achieve?0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 350.8K Banking & Borrowing
- 253K Reduce Debt & Boost Income
- 453.4K Spending & Discounts
- 243.7K Work, Benefits & Business
- 598.5K Mortgages, Homes & Bills
- 176.8K Life & Family
- 256.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards