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Buying Property From Family


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Hi there,

 

Thorough the passing of a family member, my father recently came into full ownership of a property (he bought his parents’ home back in the 60s when the council home they lived in went on the market) His parents have since passed away and the property now is in his ownership and unoccupied. Value of property is £75-85k.

 

My father wants to sell the property to release the equity and retire slightly earlier, and I would like to purchase this property through my limited company, to rent out. I will require a [buy to let] mortgage for the purchase. My dad is in a position to sell this to me below market value to help me out. However, I have been reading a lot about Capital Gains Tax and other restrictions that could potentially make this illegal or non-worthwhile. Another option could be a 'gifted deposit' from my father which would bring the total cost of the purchase down, this is something I don't yet fully understand. 

 

Has anyone been through this process or does anyone understand the legalities behind this? I have done lots of online research but every situation is different and haven’t found anything specific to my situation.

 

I will of course seek advice from an FA but wanted to start here first.

 

Note: I'm a relatively new investor and this would be my second property. The better the deal I can get on this property, the quicker I will be able to invest in my third property. 

 

Thanks for any comments and advice.

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