Can our daughter buy our house?

B

brid57

Registered User
Messages
7
Can our daughter buy a house we lived in for a long time but rented for last few years and pay us by installments.
 
Its your house, you can do what you like.

However if I were in your shoes (or your daughter's shoes); I would want a heap of paperwork covering at least

- who owns the property
- insurance, maintenance etc.,
- tax issues
 
You will be disposing of a property so you will pay Capital Gains Tax on any gain, but will get relief for the period it was your Principal Private Residence.

The CGT will be based on the market price and not the price you sell it for.

Say it's worth €400k and you sell it to her for €400k but she pays you nothing up front.
You don't charge interest.
She repays at €1,000 per month.

The €400k will be treated as a loan and so you will be giving her a gift of around 2% or €8k a year. €6k will be the small gift exemption, and €2k will be set against her €400k Lifetime CAT threshold.

The payment to you will be the repayment of a loan so won't be taxable.
She won't get any tax relief on the repayment as it's not interest. (She probably wouldn't get tax relief anyway.)
 
The parents can do a formal, legal mortgage so that the daughter can't sell the house without repaying the loan.

This would be useful if the daughter lived with someone who then claimed that they owned half the house.

But probably not worth going to the expense of it depending on the circumstances.

Brendan
 
Is Stamp Duty also applicable in the transfer of property in such circumstances?
 
I don't know would I agree Brendan, all sorts of things happen in families.

Offspring could sell house, pocket the money & head off leaving parents out of pocket / pensionless etc., I think a charge on the property would give everyone security.
 
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