Buying a house from parent

My mother inherited 3 bed semi house in 2000 and let it out for a few years. The house is in reasonable condition except for the extension which is subsiding and I'm guessing would need to be leveled. Since 2000 property in this area has risen dramatically as its 1 mile from the city (CORK). Other houses in the area renovated but only a 2 bed semi (1 bed converted to bathroom) sold for 320k. And another terraced house fully renovated sold for 340k.


I am now looking for the best way of purchasing the house from her. As I understand it she will have to pay capital gains tax or something similar of the appreciation of the house since she inherited from her mother in 2000. I am estimating that the house would fetch 280k+ in its current state. (Waiting on a proper valuation) I can only get a mortgage approval for 200k and have 50k cash. We are agreeing a price of around 240k.


So I guess in a nut shell what is the best method for her to proceed (tax) and any implications for me.

Ok. Maybe the post is a little muddled. Is there anyone out there who has had to purchase a property that was inherited by a parent. were there any complications??

I'm not sure about your mother's tax implication but if she sells it to you at below market value the difference will be treated (I think) as a gift which is well within the limits of a parent to child gift. Also, because the market value is below €317,500 you won't have any stamp duty liability (assuming you are a first time buyer and it will be your main residence.

Sarah

www.rea.ie