D
DaisyM
Guest
My father has a second property that he was thinking of selling (700K). It was originally a rental property divided into 4 units but has been vacent for several years. I think it would be a better idea to do up the house and rent it as a single home but I am not sure of what the best option is.
1. Release equity on the property to cover the costs of refurnish (estimate 150K). (Can he do this? is it risky?)
My sister and I inherit the property minus the payback to the bank. Inheritance tax applies
2. Sign over the property to me and my sister, we take a mortgage to fund the refurnish and then provide Dad with an income from the rental. Though I would be worried about legality of this and the tax implications
3. Sell the property & reinvest. Dad would be liable for over 100K capital gains tax - and not very happy about this! would also have to buy smaller property (given current house prices)
Does anyone have any advice on the above? either way some form of tax is enivitable and the main driver for this is that my Dad would like an income
1. Release equity on the property to cover the costs of refurnish (estimate 150K). (Can he do this? is it risky?)
My sister and I inherit the property minus the payback to the bank. Inheritance tax applies
2. Sign over the property to me and my sister, we take a mortgage to fund the refurnish and then provide Dad with an income from the rental. Though I would be worried about legality of this and the tax implications
3. Sell the property & reinvest. Dad would be liable for over 100K capital gains tax - and not very happy about this! would also have to buy smaller property (given current house prices)
Does anyone have any advice on the above? either way some form of tax is enivitable and the main driver for this is that my Dad would like an income