Gift of parents house

[dens]

My father and mother were going to sign up to one of those special morgages that allow them to stay in the house and release equity.My self and my 3 brothers said that if we could we would borrow money and give it to them instead.It was suggested to us that the best way to do it was for my parents to gift us the house and then we could borrow 80K and give it to my parents.My parents have no problem with giving us the house and having a legal agreement to stay there. We also willsign any legal document to cover any eventualities.NO problem so far but now we need to pay stamp duty of approx 15K on the full value of the house .Has any one any ideas on any other options available to us to save paying the stamp duty or how to borrow the money without having my parents gift us the house
regards
dens

 

[ramble]

You can each purchase a share in your parents house which equates to the amount of money you put in. So if the house is worth say 200,000 and you put in 20,000 each you each get one tenth. Stamp duty is charged on the money passing, under 127,000 is exempt. It is simplest if you raise the money elsewhere than on your parents property but some lenders will allow mortgages in these types of situation, assessing just the childrens income but with the parents also being a party to the mortgage. You can also buy additional portions over time if your parents need more money and you can afford to give it to them. The only cost is legal fees (shouldn't be too much) and land registry fees.

You should make an appointment with a solicitor to go through your options, if your parents gift you the house and then you raise a mortgage they will need independant advice (addidtional cost and they loose control of their asset). If they sell you portions of the property for full market value one solicitor will be enough and they retain most of their property