Buying my parents property to offset my mortgage

[andy.parkins@mail.co]

My parents want to retire and use the equity they have stored in their property (currently £230,000) to provide themselves with a comfortable living. I have a mortgage on my property (£365,000) that I plan to pay off in lumps over the next 8 years. My parents have offered to sell me their house now for £150,000. This would entail providing them with a lump sum up front of £60,000 followed with regular monthly payments until they died or the sell value was reached i.e. £1500 per month. In 5 - 10 years, I would aim to sell their house to reduce my mortgage. Please could you offer me advice on how best to arrange this agreement to avoid incurring a large tax bill for either my parents or me

[deanshepherd]

There would be no CGT for your parents to pay as it is their main residence.



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