Property purchase from parent implications?

[latestarter]

Hello all,

First time posting on any forum but would greatly value your advice on a big decision facing me at the moment. My Dad has a house which has been rented for several years and is in poor repair. It was our primary residence until 20 years ago, since then its been rented. He has lived in a Nursing Home apartment since moving out. I'm interested in buying the house from him but would need to do most of the legwork as he has made no plans for it himself. The house is valued at approx 500k.

There are two options as I see it. Firstly, buy the house at market value and pay the Stamp Duty and let my dad pay the CGT. The second proposal I'm considering is paying my Dad rent indefinitely and taking out a mortgage to cover the renovations with him guaranteeing it with the Deeds, on the agreement that he wills it to me. I have one sibling abroad who would be involved in any proposal.

Which proposal would be most tax efficient, are there any pitfalls to avoid, and any estimate what our liabilities would be. I will be seeking out professional tax advice but would like an early steer to stop me barking up the wrong tree before I start digging.

Any advice/other options welcome.

 

[j26]

Wills have an awful tendency to be changed without the knowledge of the benefactor, so I'd be wary of option B for that reason alone.

Unfortunately I know nothing about the tax.