I am in a little bit of a mess as I am struggling to work out what the best approach is to buying the property I live in from my mother.
Ten years ago I could not get a mortgage as I had just had my son. My mother was in the process of buying another property and selling her PPR. I convinced her to get another mortgage on this property so that I can remain. So.......ten years later. I am looking to buy the property for the mortgage value £150. I have been told I can have that. Fine. However, there will be CGT implications in my mother's name, but I need to scramble the money to pay for that as it was my persuasive tactics years ago to keep the place. What is the best to do it? I have been told that I can buy it for mortgage value and the rest would be considered an equity gift.
How do I work that out? The property is worth around 420K now. What is the lowest value and what would the CGT be on this?
She lived in the property for 23 years as her PPR (so did I)
For the last 10 years I have lived in it alone.
She bought it for around 30K back in 1983/4
Value now, roughly 420K
(I worked out the fraction in months as instructed by the tax website was 294/414 which meant that around 120K would be liable for CGT)
HELP! I just need to the property in my name somehow an be paying the mortgage so that it is legally mine. I want to pay someone to sort it but need someone with a good knowledge and imagination to make it legal but as cheap as humanly possible. I have heard of people selling properties for very little to children, I have heard of people parents retaining a 1 percent interest and the child having 99 percent...but I just simply do not know what to do. This is my home and has been. I transfer the money for the mortgage alone and have been paying it for a decade, so there is no profit for my mother in terms of letting on paper. Is there a way that we can use lettings relief to make it less? It's too complicated for me to work out.
I am not sleeping thinking about it all.
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