Can I buy my parents house?

[LOSTINTAXCONFUSION]

Hello,

My Mum has passed leaving the 4 bed family home to my Dad, mortgage free. He wants to retain his independence and remain in the house but it's too big a financial and physical burden on him.

To solve the issue I'd like to relocate and buy the house from him but I can only afford to buy it for around 60% of the value. We would like to then turn one end of house into a self contained granny annex which Dad can live in, rent free.

1) is this legal/possible?
2) can he sell to me for around 60% value?
3) are there any issues with Dad remaining in the property?
4) are there any pitfalls or things I need to know about going into this.

I understand this are quite broad questions but any help would be great.

Thanks.

[Lee Young]

Yes this can be done but you have to be wary of the inheritance tax gift with reservation of benefit rules applying, which may or may not be relevant depending on the overall value of your father's estate.

[LOSTINTAXCONFUSION]

Thank you very much Lee. The house is worth around £500,000. Dad owns a few other properties however he is in the process of selling those so they would no longer be in his name by the time I bought the family home.

What would this mean in terms of the tax gift please? I have one sibling, does that make any difference?