Hi All
We built our house 3 years ago on a site that was a gift from my father. We're now finding it increasingly difficult to pay mortgage. Planning permission condition says we can't sell for 10 years and in all honesty my father would probably be unimpressed with selling his "gift". My solution to the problem is for my father to sell his house (which is just next door) and pay off the mortgage on our house, and then he and my mother move into our house. We would like to move to the west, where house prices are cheaper. The outstanding balance on our mortage is €189,500 and my father's house would be worth about €350,000 - €400,000. So, the idea is he could sell his house, pay off our mortgage, keep say, €50K himself for his trouble and give us the remaining €100K to start again somewhere else. Can this be done, legally, and if so, would we and/or he get clobbered with inheritance/property/capital gains taxes?
I'm not suggesting he sell his house for no gain. Our house would be worth a bit more than his (probably about €450,000 - €500,000), warmer and more comfortable, cheaper to run and maintain, bigger rooms, plus he gets the original site back in his ownership. It's not like I'm asking him to give me €300K out of his own pocket. He would still own a 3 bedroom house with a very large garden, as he does now, except the house in question is more modern and more comfortable. Same neighbourhood, same friends, same local pub, same everything, just 50 yards to the right.
In any event, the "moral" aspect of the proposition is another day's discussion. What I wanted to know was would it be legal and would it be costly in taxes on either him or us?
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