SimonC
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You can sell for any price, or even give your home away.
Assuming it is your normal residence then it is exempt from Capital Gains Tax. If not then you would be charged Capital Gains Tax on its current full market value.
The main problem might be Inheritance Tax (IHT). There will be nothing to pay now, but if you die within 7 years IHT could be charged on the amount that you give away - ie the difference between the current market value and whatever you sell it for. At the moment you have an IHT "personal allowance" of £312,000, so if the value of this gift plus everything else you will leave is less than that amount there is nothing to worry about. If you are likely to leave more than that amount you need to get some proper adivce from a tax lawyer or financial advisor.
Of course, if you live more than 7 years from the date of the gift there will be no IHT to pay on that gift at all. If you are fit and healthy it could be a good way to avoid some IHT liability. Beware though, if you give the house away, but continue to live there as if its your home, you will still be charged IHT in the future as if you actually owned it. |
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Helen♥Chris
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Of course you can. |
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Max Power
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Yes its what the bank will do if they repossess it , sell to get the money owed |
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Jay S
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Yes you can. It's called a gift of equity which can increase the likely hood that your son will get approved for a mortgage. As far as your other questions ask your cpa. |
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phil_sik
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As Long As The Mortgage Is Paid It Can Be Sold For Anything You Want - 1p Even |
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Ray A
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I don't think this is as simple as it sounds.
The accountant who has replied makes an interesting point.
I'd look into it before deciding anything........government always wants to get it's filthy mits on your money somehow ;o) |
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dels replies
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yes that is up to you entirely. Having done that .The house is officially his unless you have an agreement to live in it rent free for the remainder of your life . Like my house is in trust to my kids . I live here rent free , pay all the bills, but it is theirs really . |
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Lily B Talus
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yes, but make sure that he won't turn you out once he is in possession. |
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OriginalBubble
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Its up to you what you do with your house. As long as you can pay the mortgage off.
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One Step Ahead
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Write It Don't Just Say It!
Go to a lawyer and have paperwork made to state that he will be responsible to pay the balance of a loan that you have on the house.
Once it is paid for transfer the deed over to your son. This will be come his property, and he will then be responsible for all property taxes and expenses.
Relative or not, always cover yourself just in case he changes his mind. |
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TERRY C
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you can sell it for a pound if you want to, as long as the mortgage is paid off, it's nobody's business but yours and your sons. |
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*♥* donna *♥*
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Yes you can. You could sell it for a penny if you want. As long as the bank gets the mortgage money. |
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estielmo
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Sell it for whatever you want to whoever you want. But do have a lawyer go over the papers to protect both your interests.
There are ways to structure this to minimize the tax consequences. Talk to an accountant. |
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Polonius☆
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Good question.
You may wish to contact HMRC and pose the question would it be a taxable benefit to him?
I think you may find the answer as YES. If so, he would pay a lot of Capital Gains Tax, I think at Market Value.
I don't know for certain. Just like to point that one out to you for your consideration. |
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Kathyrn F
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There is going to be early payoff penalty maybe, plus 2008 real estate taxes. Title fees as well for the closing....I'd call and get a quote before I set a price. |
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