House sale help!

[Clarkyd25]

Hi all.

So I need some serious advice.

My parents have moved from there main residence and are currently living in a rented property. Their old home is now currently empty and in need of repair/renovation.

They have offered the property to myself for the sum of £50,000, and we have agreed I pay them £500 a month till we meet the £50,000. I have taken on all bills such as water tax etc, but currently can't live in the property as I'm in the forces so i travel back at weekends when I can.

The advice I am seeking is would it

A) be best to have the deeds put in my name and carry on with the payments then renovate. After this I'm not sure weather to rent it out or sell it but I need advice on where my self and parents stand on different taxes etc.

B) Could I still renovate and get the house back to a liveable standard and my parents sell the property the. They could gift me the money after taking their £50,000, the money they could possibly gift going of house prices in the area would be in the region of £70,000-£100,000 after they have taken there £50,000.

I really would like some advice on what is best to do also we want to do it all legally and not get caught out at a later date.

Any help would be greatly appreciated

Kind regards

 

[Michelle Barringer]

Hello,

I would suggest you need to speak to a specialist in this type of transaction - but Vantage Finance may be able to help ( they sponsor one of the forums)

 

[Nicholas Wallwork]

Both routes are potentially good ideas but it depends on your longer term personal goals... if you rented it out and kept it, it could be a great investment option giving returns from the rent and hopefully longer term capital growth.

I think in either option your parents can give you tax free provided they don't die within 7 years. If they do pass before this time then inheritance tax kicks in at various tiers depending on how far into the 7 years you are. That's my general understanding but I'd highly recommend checking with a qualified accountant first....




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[nmb]

Would it not make sense to renovate the property now, rent out then at least you can have some income while you are away in the forces? The subject of inheritance tax is complicated but I believe there is a seven-year cut-off point after which a sliding scale in inheritance tax kicks in - as mentioned above.