sell home to parents [pitfalls] [loans]

Q: Are currently separating from my wife and wants her to buy our property, my parents have offered to pay off the mortgage, loan and my wife is 50% of the equity they have left the house and it may I rent it back for as long as I want. What is the cheapest way to the house and sell them to buy and there is no that we can not think?


A:with stamp duty at 125K is this based on the valuation of the house (approx 165K) or is it on the sale price which in this case (mortgage plus debts plus equity payoff) comes to about 130K

A:the money is their pension pot and my rent would be the monthly return on their money.

The house was being sold totally to my parents with me forgoing my share of the equity in return for debt free living.


A:you would still presumably own your half of the equity, so have some share in the house.

to watch for are what happens if your parents need the money tied in your house, perhaps for long term care? If the house ever came to be sold they would have a capital gains tax liability. There is also a future inheritance tax problem in that their estate would include your home meaning paying possibly unnecessary tax. Most people try to transfer property down generations not up!


Related posts

tags: ,
posted in mortgage by admin

Follow comments via the RSS Feed | Leave a comment | Trackback URL

1 Comment to "sell home to parents [pitfalls] [loans]"

  1. David Palmer wrote:

    Sell and rent back is a solution that is possibly most frequently used by clients that are having major economic difficulties.

Leave Your Comment

click to changeSecurity Code

 
Powered by Second Mortgage.