This is under consideration at the moment due to them both being retired, and should the worst happen to one of them, they don't want it going to the state etc should they end up in care etc etc.

Anyone got any pointers? Can I buy it under market value? Don't know where to start really...so though i'd try a car forum.

 

My mate is in the middle of doing this now as it happens so i'll have a word with him tonight for you and see what the score is




Martin

 

Great stuff.

Is there anything you can't find out on here??

 

i bought mine off my parents at under what its worth.the mortgage company dont care what you pay as to what its worth.as long as you can pay the amount back.if anything they prefer it cos if you fuck up they earn money out of it cos it s worth more than what they lent you.

 

It used to be that as long as they signed it over to you seven years before they died, then it wasn't subject to any inheritance tax. No idea if that is still the case....

 

As Mike said.The 7 year rule still applies. I've just purchased some land from my Dad and the same thing applies....

 

Mike Rainbird something like that

doesn't help when a sudden illness like cancer strikes though

 

I'll pump them full of formaldehyde till the 7 years is up then should one of them be inconsiderate enough to die.

I don't mean that at all.

 

did this about 18 months ago

tell the mortage company you want to buy a house for the sort of mortage you can easily afford to pay, as in a Ł100 a month
this way you get money to put into a high intrest account, get yourself on the mortgage ladder so you can remortgage easier

bit of a pisser because you wont be a first time buyer but you don't run any sort of risk of falling foul of the inheritance tax laws

 

The seven year rule still applies for inheritance tax.
You can buy it cheap but if your parents do not live 7 years you will be stuck with 40% of what you pay/ Market value when they die, if over 300k estate.
It would be better to sell the house & buy a Ferrari Enzo & register it in your Mothers name & then she can sell it too you for a Ł1. You sell it for what its worth & then buy a house. Thats devious but legal.

 

Forgot to say, i've already got my own place, bought it 9 years ago. Just looking to do this to stop the state getting their house should they end up in care etc. I think the state has had enough out of them over the last 60 years or so...

 

We bought my parents house 2 yrs ago for well under the market value. The mortgage company's don't really care, it was the Solicitors that were confused! lol But it only took about 6 weeks to go through so in all, brilliant!

 

Can't you just buy it for a quid or something as long as your parents own it and don't have finances outstanding on it?

 

my old man got a mortgage out in 78 for aboutŁ10k
he paid about Ł50 a month on it, then, when the last payment was due, he short paid by 50p
the bank still had a mortgage on the house so they kept the deeds and stuff
if they had had their total final payment they would have charged my old man Ł25 a year to look after the ddeds

no fool is my old man so when it came to selling the house, it was just a case of buying it, not getting the solicitres invovled, tellin ghe bank what was going on, and the old man banked teh cash he got rom me and uses the intrest to pay off the mortgage

it was only for about 6months anyway then we stuck the money into the bank to get intrest while he made me fork out Ł100k for the deposit ion the new house, bugger

but if you own the house and have your name on the deeds and paperwork and, most importantly, the land registry stuff, it's yours, even if the folks were to pop after 20 seconds (not that they do, but you know what i mean)

the only big change now is that my parents live with me, rathe than i lie with my parents

 

It wont hit inheritance tax unless its 285k or over...if it isnt and you just dont want the state getting it to pay for their care if they need it, then you can buy it for any value iirc...and the seven years doesn't matter. IF it is worth over 285k, and you buy it and they die within 7 years then it still account for inheritance tax... IIRC as im not 100% sure

 

Well spoke to my mate and he has told me..
him his sister and brother are buying the house by getting small loans on their houses and giving the money to his mum who can buy the house with a discount from her council then after 3 years she can sell it to her family and not have to pay the council back any of the discount


HTH any more info you want i can ask him

Martin

 

You can transfer it into your name using land registry forms TR1 and AP1 i think, and an SDLT 60 form i think it is.

You dont have to actually pay anything for the house, but the 7 year law doesn't apply for seizing the house for care i believe. I was told they can trace it right back for as long as they want to when they're trying to steal your hard earned money.

Be better to blow it all on an amazing holiday and live like a king for a year, then tell the government you got no money and they'll pay for everything! (only joking of course, but feels like that sometimes)

Am sure you cld think of ingenious way's for your parents 'use' the money etc.

But beware, the government now has the ability to open offshore accounts and check if you got hidden money!!!! The worlds gone mad!