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Where Taxpayers and Advisers Meet

Buying a % of house from parents

Kathy_89
Posts:1
Joined:Wed Jun 28, 2017 1:11 pm
Buying a % of house from parents

Postby Kathy_89 » Wed Jun 28, 2017 1:17 pm

My parents owe roughly £160,000 on an interest only mortgage. They have no way of ever paying this off and there only option is to sell the house. Would I be able to buy a % of the house in order to pay off some of the debt? I could afford a mortgage myself to buy 80% of the house but couldn't afford a mortgage for the whole amount they owe. Is this an option and what would be the tax implications?

maths
Posts:8507
Joined:Wed Aug 06, 2008 3:25 pm

Re: Buying a % of house from parents

Postby maths » Thu Jun 29, 2017 4:45 pm

Yes you could as you suggest.

Problem is on any future sale you will have a cgt liability (assuming you don't live there).

Might be better for you to get the mortgage which you lend to them. They pay off their mortgage and leave you the house in their will. No CGT charge then arises although you don't own any part of their house until the death of the later of mum/dad. This would also be effective for IHT if mum/dad exposed to it.


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