Hello,
All help greatly appreciated.
Situation is simple................Parents house worth circa €800k. 5 siblings all moved out. Folks don't have much of a pension in addition to the state pension so need to supplement their income. Want to try to avoid equity release schemes and trading down not an option.
Could the folks sell the house to the siblings for €400k? Siblings take out one interest only mortgage in all of their names for this amount. Folks could still live in the house with €400k to spend/put away or whatever.
Related questions?
1. Would banks give the 5 siblings a mortgage collectively or would it be down to individual capacity? We would want interest only. What would be the best way to structure this?
2. Would we have to pay stamp duty? I think the rate is halved if between family members?
3. Presumably we'd have no gift tax liability as we each have a threshold of circa €490k.
4. Is there anything I am missing?
Many thanks,
All help greatly appreciated.
Situation is simple................Parents house worth circa €800k. 5 siblings all moved out. Folks don't have much of a pension in addition to the state pension so need to supplement their income. Want to try to avoid equity release schemes and trading down not an option.
Could the folks sell the house to the siblings for €400k? Siblings take out one interest only mortgage in all of their names for this amount. Folks could still live in the house with €400k to spend/put away or whatever.
Related questions?
1. Would banks give the 5 siblings a mortgage collectively or would it be down to individual capacity? We would want interest only. What would be the best way to structure this?
2. Would we have to pay stamp duty? I think the rate is halved if between family members?
3. Presumably we'd have no gift tax liability as we each have a threshold of circa €490k.
4. Is there anything I am missing?
Many thanks,