sell my house to family member ?

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    sell my house to family member ?

    Hi as you ma have some of you read my last posts as i have recently sold a house and getting out of the BTL scene due to the problems i had, I still have one ppty let though and my son lives there , ive asked him to buy and he keeps saying 'not yet' quite happy for me to spend money on it and do repairs although he pays rent on time and keeps the place nice and does a lot of repairs himself too,

    I did at one stage try to get it valued and he would not respond to the estate agents calls and then got really uptight and said he wanted all his rent money back from the past 3 years if im going to sell it


    ive offered to pay the deposit to help him buy the house and offered him a low purchase price of around 50,000 ppty is worth about 70,000 so a bargain for him really i trying to be fair - and said the mortgage on that would be low - he still refused

    His g/f said its a good offer and both myself and her were trying to persuade him to buy it
    I have even got enough money to pay off the mortgage and give him the proterty but that would be unfair on my other children tbh as this was supposed to be money split between all of them -

    I really wanted to get rid of the house to my son who is happy and settled there but says 'financially not ready' (hes 31) but works fulltime with good job
    I really dont want the hassle of the house anymore as im getting too old for it , ive told him the mortgage will be cheaper than the rent

    any suggestion helpful

    #2
    Youve already broken the golden rule of dont rent to friends or family and this is an example of one of the reasons. Your Son seems to feel a sense of entitlement about this property and waiting for you to gift it to him. Unless you are prepared to do that I fear it will sour the relationship. Even charging him well below asking price is something that I bet he will complain about for years. In your shoes I would reiterate the offer and set a deadline, after which you will sell on the open market, but there will almost certainly be fallout

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      #3
      And serve s21 today. Check it against nearly legal s21 checker.

      If you are not prepared to do this all is lost
      I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

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        #4
        Ye the thing is i dont want a fall out - hes been a good son has helped me immensley with clearning out the other other property going to the tip for me and so on -
        Otherwise we are close in that respect so wondering about the tax implications if i were to gift it to him
        Issue of a section 21 would be a nightmare and i didnt want to go that far as he will only end up on my sofa here
        Hes paid rent on time ect
        I am hoping i can persuade him

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          #5
          Note that, if you do sell it to him in these circumstances, your CGT will be based on the 70k market prices, not the the 50k price paid. There will be a 20k PET.

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            #6
            Put the property for sale on the open market, tell him that you want rid as you are getting to old to run a business; so if he doesn't want to buy then it you'll sell to someone else.

            Once he sees it is up for sale he might think about getting his finger out and not tryng to take advantage of you being his father.

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              #7
              ye i was worried about CGT , it think i paid 75,000 for it so its actually dropped in value as they are going for about 60,000 to 70,000 now round there thats becasue they buildt some council homes oppisite. so like i said if i sold it to him for 50,000 would i have to pay CGT on the 20,000 what is PET ?

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                #8
                and im sure i dont want a family fall out - not do i want the property being left empty as its not nearby , and as i dont drive its a paint to get to if i need

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                  #9
                  If its worth the same or less than you paid then there is no capital gain and therefore no CGT. You might need to prove this with a professional valuation though. If you are happy to gift it to him then talk to a tax advisor now about how best to do that.

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                    #10
                    If he is not ready at 31 then god help his girlfriend ! Sit down with him and his GF and spell it out (with dates) as too when the house will be going on the open market, explain that at some point he has to join the adult world and he is being given a golden opportunity to purchase his home at less than he pays in rent, if he can not understand this then a fall out is inevitable i am afraid, its your life he is playing with and you have done more than most would, he is taking advantage and that is not fair.

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                      #11
                      yes im hoping i can do that at some stage pretty soon its nightmare as he seems to spend all his money on his 2 cars ,

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                        #12
                        Well if he spends all his cash on cars and other such luxury's then he will continue to do so until he has to make real choices in life, like we all have to do at some point, he is like a lot of adult men who appear to live the life of a teenager and have a Peter Pan complex, its not healthy and he needs shaking out of it, good luck.

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                          #13
                          Wants his rent money back? What?? on what grounds?

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                            #14
                            Selling at undervalue, to a connected person, is considered a gift, of the excess of the market value over the price paid.

                            Even if CGT isn't payable, you submit a tax return for the loss, and use that loss against CGT in future years.

                            You need the valuation for inheritance tax, unless you are sure of surviving 7 years or have insufficient assets to be taxable.

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                              #15
                              yes hope i can do that at some stage

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