Deleted User
Guest
- Location
- Wolverhampton
Inheritance tax us over 300k or thereabouts these days so unless it's over that you won't pay anything anyway.
Buy my Dads house?.
- Thread starter keithmac
- Start date
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glasgowcyclist
Charming but somewhat feckless
- Location
- Scotland
As usual, seek professional advice but (in Scotland at least) it’s possible to transfer a property for zero cash consideration. Instead the consideration is recorded as “for love, favour and affection”. Provided there is no mortgage debt on the property, there will be no LBTT to pay.
OldShep
Über Member
- Location
- South West Scotland
it would make a huge difference. Your dad would be dead and not in need of a home.
OP
OP
keithmac
Guru
I'm just trying to get my head around it all first, obviously a solicitor is on the cards eventually (he's not really a "people person" so would like an idea before we go in.
It seems he may have to pay market rent that would be £800 a month, rather than a pound..
Trying to work out best way to get him a new roof in the short term tbh.
It seems he may have to pay market rent that would be £800 a month, rather than a pound..
Trying to work out best way to get him a new roof in the short term tbh.
Beebo
Firm and Fruity
- Location
- Hexleybeef
The stamp duty might be an issue as selling a house cheap deprives the exchequer of revenue
vickster
Legendary Member
Bank Loan?
glasgowcyclist
Charming but somewhat feckless
- Location
- Scotland
Ask about a liferent arrangement (again, this may be peculiar to Scotland) where, having transferred the house to you, you can grant him occupancy rights until some specified event, such as death. There is no actual rent to pay but the liferenter is responsible for council tax and utilities etc.
OP
OP
keithmac
Guru
I believe if I bought it cheaper Stamp Duty would be charged at the Market Value not what I paid.
Hacienda71
Mancunian in self imposed exile in leafy Cheshire
- Location
- Wilmslow, Cheshire
You would need to charge your dad a market rent to avoid iht if he remains domiciled there.
The revenue may challenge the transaction if you buy at a reduced level, but if you are gifted it, that should avoid stamp duty.
Iirc the reason for transferring a house as well as the seven year rule re iht is also to avoid it being sold to pay for nursing care. You need to talk to a decent accountant or IFA though as there all sorts of rules you need to adhere to and potential trusts you can set up.
The revenue may challenge the transaction if you buy at a reduced level, but if you are gifted it, that should avoid stamp duty.
Iirc the reason for transferring a house as well as the seven year rule re iht is also to avoid it being sold to pay for nursing care. You need to talk to a decent accountant or IFA though as there all sorts of rules you need to adhere to and potential trusts you can set up.
Drago
Legendary Member
- Location
- Suburban Poshshire
Thats exactly what im in the process of doing, and luckily for me my house is in scotland. Its a little convoluted to get to the end result, but in essence the tax liability is massively reduced when it is then sold, and the money transferred back to me after a suitable period of time. All very legal, all very common.
Saluki
World class procrastinator
- Location
- ...Norwich over the water.
Cautionary tale.
My sister bought parents house at about a quarter of market value and parents still lived there. Sadly sis is a bit of a gadabout and her and hubs divorced. When it was explained to father that they were putting house for sale he became ill. Massive mistake on parents part. Sis sold house for full market value.
If you are single, or in long term stable relationship and not with a flighty 20 something, it would be worth exploring. Get legal advice.
My sister bought parents house at about a quarter of market value and parents still lived there. Sadly sis is a bit of a gadabout and her and hubs divorced. When it was explained to father that they were putting house for sale he became ill. Massive mistake on parents part. Sis sold house for full market value.
If you are single, or in long term stable relationship and not with a flighty 20 something, it would be worth exploring. Get legal advice.
Just a thought. Putting aside house sentiments, would selling the house now and getting a house that does not need any fixes help. Not sure if a house that needs major repairs is worth holding on to or investing further. Have to factor in stamp duty and such. It just avoids all the family issues which typically surfaces belatedly. Opportunity to pick up something that works for your parents and later for you.
OP
OP
keithmac
Guru
I've been with my wife for 25 years and married for 16 of them, I genuinely don't think that will happen.
Can't believe how awkward it would be to either buy or be gifted a house!.
He doesn't want to move.
You could look at putting it in trust for your children.
https://www.thisismoney.co.uk/money...HE-EXPERTS-How-I-set-trust-grandchildren.html
https://www.thisismoney.co.uk/money...HE-EXPERTS-How-I-set-trust-grandchildren.html
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sleuthey
Legendary Member
- Location
- South Gloucestershire
Just pay for the roof and let the will do it’s job
