Retired person using savings to buy home closer to family

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RMM123

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My Dad passed away recently. My mum currently lives a long distance from me in the family home. A house has come up for sale beside me and she would like to purchase the house with her savings. She will eventually sell the family home but is emotionally unable to break ties with it just yet. I feel she needs some financial advice before she makes a decision but she is reluctant to discuss her affairs with a third party. Are there any particular things she should be looking out for such as capital gains tax. Any advice would be greatly appreciated.
 
RMM123 said:
Are there any particular things she should be looking out for such as capital gains tax.
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If she sells her home and it was never rented out then CGT is irrelevant.

It's a very broad post/question and difficult to answer without more details of her overall personal/financial circumstances.
 
RMM123 said:
My Dad passed away recently. My mum currently lives a long distance from me in the family home. A house has come up for sale beside me and she would like to purchase the house with her savings. She will eventually sell the family home but is emotionally unable to break ties with it just yet. I feel she needs some financial advice before she makes a decision but she is reluctant to discuss her affairs with a third party. Are there any particular things she should be looking out for such as capital gains tax. Any advice would be greatly appreciated.
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Things that immediately come to mind are the expenses involved in maintaining two properties: LPT, insurance, electricity connection, maintenance and heat, for starters. Then there's things like security and garden maintenance to be considered. I assume that she can pay the bills, but she probably needs to do some calculations before she acts.
 
If the house was always her PPR, then no CGT.

It's a very difficult decision for her, she would be leaving her friends, her neighbours she probably known for years behind. It's not easy really.

Maybe she could buy the house near you, move in and then start moving all her possessions out of the old house and into the new home. Then once old home is depersonalised she might consider selling in 6 months
 
RMM123 said:
Are there any particular things she should be looking out for such as capital gains tax.
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There aren't really any tax issues if she leaves the old house vacant.

If she lets the old house then she has to pay tax on the rental income and she starts building up an exposure to CGT if she sells it.

If she holds the house until she passes away then the CGT exposure dies with her.
 
RMM123 said:
She will eventually sell the family home but is emotionally unable to break ties with it just yet. I feel she needs some financial advice before she makes a decision but she is reluctant to discuss her affairs with a third party.
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she should make the decision on its personal rather than financial merits

If she has enough money to buy a house near you and wants to do that, she should do that.

Holding onto her own home , or renting it out have very minor financial implications which should not impact her decision.

1) buy the house if that is what she wants
2) don't sell the existing house for the moment.

3) Probably don't rent it out either. She doesnt need to and she might want to visit it.
4) BUT IF she wants to rent it out, that is fine. It's risky with all the regulations. just that she is aware of that
5) If she decides to sell it , then probably do so within 12 months. but this is only a minor consideration.

The main thing is that she can afford to buy near you and should do so


brendan
 
Thank you to everyone for your replies, they have been so helpful, I really appreciate your time. All the best
 
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