buying parents house

[geoffb]

myself and my brothers wish to explore the possibility of buying my mums house could anyone offer any advise?

[madmaggot]

Not enough information to give advice. On the face of it,this is no different from buying a house from anyone except that you have excellent knowledge of the history of the building and your Mum will not have to pay an agent.

[LoftyLottie]

How old is your Mum? I ask because if she is elderly it could be construed that she wishes to pass the house on to you now instead of you inheriting it. You will need to show you are buying it at a fair market price. There are all sorts of problems that you need to be aware of.

If this is not the case then you can both use the same solicitor's practice for the transaction as it is considered an arm's length deal and you are closely related. Other than that it is no different from buying a house from anybody else.

[LoftyLottie]

And I see Zac popped in whilst I was composing my reply with some good information on inheritance tax.

[factor-fiction]

and as she will receive the money there may be implications for her pension credit//housing benefit or for liability for care home fees

[LoftyLottie]

If you buy at a much reduced price (whatever the age of your mother) it will be seen that she has given you a 'gift' and this could affect her tax situation as well.

[LoftyLottie]

Sorry Zac,

I admit to not reading right through it. Due to circumstances over the last six years or so I think I must have explored every inch of this subject!!

[society]

just asking a what-might-be silly question - can't the mother give the house to both children, and then children give the mother money as a gift? it is legal for parents to give their children a house, and for children to help parents with money in times of need? as i said, I'm only asking, this thought just popped into my mind...

[factor-fiction]

I'm not sure what the benefit would be in doing it that way, Society. And the property ownership transfer would need to be documented. And what if someone reneges and says 'no, it was a loan not a gift'

[LoftyLottie]

Wish it were that simple Society! The mother would be giving her children a huge gift and there is a set amount you can give as a gift each year. Whether she gives a house or money, it is treated in the same way. After that there are huge tax implications.

Basically, we can't do what we like with our own property and money - unless, of course, you are filthy rich and can afford to employ the best accountants who know all the tricks of the trade so that you can avoid the tax!!

[society]

Thanks Lofty Lottie.

Life just isn't fair. Why should people (the government) try to control how one should spend or utilise what they work for or what's rightfully theirs?