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Hello and thank you for your question. I will be very pleased to assist you. I'm a practising lawyer in England with over 10 years experience.
May I ask if there is any moretgage or third party interests secured on the property presently please?
Thank you. On that basis the matter is relatively straightforward. From what you say you are aware that the transfer will not change the position regarding IHT because HMRC will treat your parents occupation of the property as a reservation of benefit so treate the house as being within their estate for calculating IHT if they remain in occupation. It is possible to avoid this if they pay you an occupational rent but this is only of relevance if their estate is above the IHT allowances.
Otherwise your parents will need to execute a deed of gift and a transfer deed to transfer the property into your name. In principle there is no reason all of this cannot be done simultaneously with a remortgage but some lenders may insist that the transfer is carried out before they will process an application for a mortgage. Using a broker may allow you to negotiate some more restirctive lender requirements in this respect.
From your parents point of view they are obviously giving away a valuable asset as you could ask them to leave at any point in the future. They should also consider what might happen if anything happened to you in the future - i.e. they may trust that you wouldn't ask them to leave but what if something happened to you? Who would inherit your assets? What if you are/get married, have children etc. They are potentially left unprotected. They will need to think about this carefully. Also do they want anything agreed formally whereby you will obtain a mortgage and apply proceeds to renovations or will they trust you on this point. These are all issues for your parents not you but I mention them for the sale of completeness.
Finally assuming the house is your parents main residence there should not be in capital gains tax issues. There shouldn't be any stamp duty to pay based on what you say unless the amount you are obtainin as a mortgage is more than £125K and you have an obligation to your parents to pay for renovations. If this were the case there may be Stamp duty to pay though only if you had an obligation to renovate.
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