buying for less than market value

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307

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Just looking for some info here, can a house be sold to a family member for less than market value,basically a sibling got into difficulty a few years ago and had to sell house to clear debts etc.
they're now looking to purchase family home for a good bit less than it's worth,only one parent alive and a small mortgage remaining on it.
 
307 said:
Just looking for some info here, can a house be sold to a family member for less than market value,basically a sibling got into difficulty a few years ago and had to sell house to clear debts etc.
they're now looking to purchase family home for a good bit less than it's worth,only one parent alive and a small mortgage remaining on it.
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There may be capital acquisitions tax implications as the Revenue would likely view the amount of the undervalue as being a gift from the parent to the child, however it is quite possible this will be under the exemption threshold for gifts from parent to child.
 
Thanks for your reply it would be under the exemption limit,basically what is happing is house worth approx 260k needs a bit of work,mortgage 50k,sibling wants to buy house for 160k.(may have to get mortgage through GE money or similar)parent would pay off mortgage,so would leave approx 100k after fees etc. and wants to give me 40k and sibling 40k.parent would continue to live in house until death.in the meantime sibling wants to use the equity to get another mortgage to get back on property ladder.(renting at the min)
 
The revenue will have to be informed that this is not an "arms length" deal. Consider that it may not be a good idea to undervalue the property because that will mean extra capital gains if it is sold eventually.
 
just got a value done today and its actually worth 320k so dont think i'll be settling for just 40k maybe i'm just feeling a bit hard done by even though i am fairly secure financally, but i worked very hard for it and basically to see sibling get it all handed on a plate after messing it up already is a bit annoying
 
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