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Hi, I appreciate you have been waiting for a long while for assistance. I am able to assist you if you are still interested? I will await to hear from you. Kin Regards Al
Hi, thanks for your reply. I take it that you will need a Mortgage to finance the purchase? Al
Hi Kerry, thanks. Well, firstly, it is possible for you to proceed with the purchase- most High Street (but not all) Mortgage Lenders would grant you a Mortgage in principle even if your Mother is to remain living in the property- you would have to explain that this is a family arrangement. As regards ***** ***** position, there are 2 aspects- 1. You will have to pay Stamp Duty (as you would for any purchase). The Stamp Duty laws are slightly complicated, but you would be liable for paying it on £300,000 as Stamp Duty is payable on the amount of "cash" you are paying plus any element of any gift being given to you. 2. Your Mother would pay no tax, but if her Estate was liable for Inheritance tax when anything happens to her, her Executors would have to declare that she had made a lifetime gift of £175,000 to you (being the market value of the property less the £200,000 you are paying her). Under Inheritance tax laws, normally any lifetime gift is excluded from the value of the Estate for Inheritance tax purposes if the donor (your Mother) survives for 7 years. However, as your Mother is "retaining an interest" in the property (ie she is to remain living there), the full sum of £175,000 would be treated as being within her Estate even if she were to survive for 7 years. So, this amount would be added to the other assets she owns at the date of death, when calculating if her Estate is liable for Inheritance tax. I hope this assists and I haven't confused you! Please let me kow if you require any further clarification. Kind Regards Al
Hi, can I be of any more assistance to you?
If I have answered your question, I would be grateful if you could rate my answer. Thanks Al
Hi, thanks for your reply. If your Mother were to gift £100,000 to each of your brothers, this would be classed as a lifetime gift and for Inheritance tax purposes, tax would be payable IF your Mother were to die within 7 years of making the gifts. If she survived for 7 years, then no tax would be payable. If your Mother were to die within the 7 year period, the gifts would then become liable to Inheritance tax- at a sliding rate depending on how long the time was between making the gift and the date she died. I hope this helps. If so, I would be grateful if you could rate my answer. Kind Regards Al