TR1 form second property connected person sale

[seasider01]

Thought this was going to be easy but ,,
Selling to our child ( over 18 ) for price we paid for 2nd home 8 month ago. Child getting a mortgage and own savings + gift cash from us. Mortgage lender did their valuation which now come back higher than what purchase price is. mortgage Lender happy for purchase price to be the same as before. Now come to sale TR1 form and consideration box doesn't seem right - I thought first box to show full sale price (i.e. price we are selling for & same as what we originally paid) solicitor has used last box other - stating purchase price paid to us from child, but also shows gift equity for the diff in value of purchase price and what the mortgage valuer put. I understand we have to declare CGT on market value on our tax return and also note any gifts I e. The cash gift and the gift equity due to family sale for iht purposes. Just needed clarification if should be noted on TR1 land registry form.

[AGoodman]

MAJOR caveat: I am not a conveyancer and have never even done a conveyancing course.

This does sound a little strange. I can kind of see what the conveyancer is trying to do but query whether they would do this in if the sale was to an unconnected buyer and the buyer's valuer came up with a higher figure. You can certainly query it. The notes to form TR1 are pretty unhelpful and it might be standard practice but i don't see any harm in asking why they have done it. It is possible they are correct.

It may of course be in your son's interests to have a higher figure on the register if he needs to sell in the short term as a lower figure on the register may make a buyer reluctant to pay a much higher figure.

[seasider01]

Thanks for your reply - just to let you know that purchase price has been agreed which does suggest the land registry is based on the actual price paid.