Some advice please. I am considering buying me parent's house. The market value of the house is approx Â£230k with outstanding mortgage of Â£145k. My mother is 65 this year and my father is 65 in 2009. I currently pay the mortgage for them. My intention is to buy the property from them at market rates using 20% of the existing equity as a deposit and the remainder of the equity being used to pay off some outstanding debts. My parents would continue to live in the property. In this way I effectively get my inheritence early when I actually need it and my parents have a home for the rest of their lives.
What are the tax implications for me from getting the money now (could be classed as a loan?) and on selling the property on my parents eventual death (likely to be 20yrs+). Some other info that might help: My wife and I jointly own our main property, she has a second home in her name. We are both higher rate tax payers. Is there any mileage in charging my parents a notional rent?
Thanks in advance for your help.