Frist time buying half a property advice?
Discussion
Looking for advice regarding first time buying.
Thinking about buying the apartment that my dad and stepmum own. It is being valued this evening, I can't see it being worth more than £250k
Dad is giving me his half of the property. More than likely he will pass away this year, in fact it will be a miracle if he lasts another 6 months. Not sure how that complicates things in terms of inheritance - I see that the inheritance threshold is £325k
I'll need to raise a small mortgage for stepmum's half.
I have £20k deposit.
How do I do this without involving estate agents or spending any unnecessary money?
Is there anything I haven't thought of?
Ta.
Thinking about buying the apartment that my dad and stepmum own. It is being valued this evening, I can't see it being worth more than £250k
Dad is giving me his half of the property. More than likely he will pass away this year, in fact it will be a miracle if he lasts another 6 months. Not sure how that complicates things in terms of inheritance - I see that the inheritance threshold is £325k
I'll need to raise a small mortgage for stepmum's half.
I have £20k deposit.
How do I do this without involving estate agents or spending any unnecessary money?
Is there anything I haven't thought of?
Ta.
Edited by unzippy on Thursday 16th April 10:48
You really need to speak to a solicitor with estate/probate knowledge.
They'll talk to you about ownership (joint/in common), thresholds, gifts etc. If you don't do this you could easily end up in the position of not being able to afford the inheritance tax and losing the whole property.
There is nowhere near enough information in your OP to even hazard a guess as to the best course of action.
They'll talk to you about ownership (joint/in common), thresholds, gifts etc. If you don't do this you could easily end up in the position of not being able to afford the inheritance tax and losing the whole property.
There is nowhere near enough information in your OP to even hazard a guess as to the best course of action.
I can't help with the practicalities of the purchase but it is worth being aware that you will lose your first time buyer perks after you have taken possession (or part possession) of this property which means you aren't eligible for LISA bonus, increased stamp duty threshold etc on your next purchase.
Basically you're probably going to want to be sure you're buying the right property and for the right reasons...
Basically you're probably going to want to be sure you're buying the right property and for the right reasons...
unzippy said:
Looking for advice regarding first time buying.
Thinking about buying the apartment that my dad and stepmum own. It is being valued this evening, I can't see it being worth more than £250k
Dad is giving me his half of the property. More than likely he will pass away this year, in fact it will be a miracle if he lasts another 6 months. Not sure how that complicates things in terms of inheritance - I see that the inheritance threshold is £325k
I'll need to raise a small mortgage for stepmum's half.
I have £20k deposit.
How do I do this without involving estate agents or spending any unnecessary money?
Is there anything I haven't thought of?
Ta.
You'll need to know how the property ownership is currently set up.Thinking about buying the apartment that my dad and stepmum own. It is being valued this evening, I can't see it being worth more than £250k
Dad is giving me his half of the property. More than likely he will pass away this year, in fact it will be a miracle if he lasts another 6 months. Not sure how that complicates things in terms of inheritance - I see that the inheritance threshold is £325k
I'll need to raise a small mortgage for stepmum's half.
I have £20k deposit.
How do I do this without involving estate agents or spending any unnecessary money?
Is there anything I haven't thought of?
Ta.
Edited by unzippy on Thursday 16th April 10:48
Do they own it jointly or have they already split it?
Whats your intention then? Live in it? Rent it ourt? What happens to your Step Mum?
Sarnie said:
You'll need to know how the property ownership is currently set up.
Do they own it jointly or have they already split it?
Whats your intention then? Live in it? Rent it ourt? What happens to your Step Mum?
They own it jointly, it's their rental property.Do they own it jointly or have they already split it?
Whats your intention then? Live in it? Rent it ourt? What happens to your Step Mum?
I'll live there. Stepmum will continue to live in their house.
ChrisH72 said:
If they own it jointly then when your father passes away your step mum will then own it assuming they are married.
I'd say this needs proper legal advice and things putting in writing. Can't see that you'd need to use an estate agent but you will need a solicitor.
Yes, looking that way. Cheers.I'd say this needs proper legal advice and things putting in writing. Can't see that you'd need to use an estate agent but you will need a solicitor.
unzippy said:
Richard-D said:
So crucially (if I've understood), not the family home?
Correct.Why?
Because as a second property (not main residence) there will be a potential Capital Gains Tax (CGT) charge on the disposal(s). CGT rate of tax is 18% to 24% on the gain.
Because when somebody dies a different tax regime applies with potentially Inheritance Tax (IHT) payable. Where IHT is charged the flat rate is 40%.
Because on death there is no CGT. I repeat, no CGT on death.
Because a lifetime gift made shortly before death has for practical purposes no IHT advantage over a gift made by Will at death.
IMO it looks as though the family would be well advised to see a solicitor for comprehensive tax and Wills advice. It would be unfortunate to end up paying more tax than you need to.
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