Selling house to daughter hypothetical question

R

ROS123

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We are looking at selling our house to our daughter. We are moving to another smaller house which is costing less than the value of our house. For example we are purchasing at 200, our house is worth 260. Our daughter can only get 90% of the mortgage. Can we sell at 240 having given our daughter 20 for the 10% deposit. When she gives us 240 we are actually getting back the 20 we gave her for deposit. The total value of the mortgage is still less than the true value of the house.

This came up in a disucssion at a party last night and I am wondering at its feasibility. One person claims to have done this earlier in the year.
 
Yes you can. In fact you can sell it to her for one euro if you want.

Revenue will assess it as if you sold for market value in relation to CGT, stamp duty and CAT ( for the difference between sale price and market value).

Bank will not care as long as valuation is at market value and you sign docs to say you have no legal entitlement to the house.

It's an entirely normal, above-board, transaction as long as the true market value is declared.
 
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