How do I sell my home to my son?

[Denpsey27]

Hi.

I have a house with €30k left on the mortgage. It was recently valued at €160k.

My son would like to buy it off me and then rent it out.

What is the best way to go about this so that both of us are getting a good deal.

 

[Protocol]

Do you live in the house? Is it your PPR?

 

[ClubMan]

What is the best way to go about this so that both of us are getting a good deal.

You sell it to him for €160k and he rents it out?

 

[Denpsey27]

Do you live in the house? Is it your PPR?

Yes. It is our PPR but we have a smaller house that we plan to move into

 

[DannyBoyD]

Your offspring pays you €160k and solicitor does the conveyance.

Not complicated.

 

[Brendan Burgess]

Hi.

I have a house with €30k left on the mortgage. It was recently valued at €160k.

My son would like to buy it off me and then rent it out.

What is the best way to go about this so that both of us are getting a good deal.

Do you see some complication?

If you do it in the same way as an ordinary sale to a stranger, the following are the steps.
1) Your son gets mortgage approval from his bank to buy it.
2) You both go to separate solicitors
3) When you are ready to complete the transaction, his solicitor gets the mortgage from the bank.
4) His solicitor pays €160k to your solicitor
5) Your solicitor pays your bank €30k to clear the mortgage
6) Your solicitor pays you €130k less her fees.

 

[Brendan Burgess]

As it will be an investment for him, make sure that you don't sell it at undervalue.

For example, if you argue that it is worth just €130k, it will mean that when he sells it, he will have a higher bill for Capital Gains Tax purposes.

If you want to help him out... Sell it for the full price - €160k. Then give him a gift of €30k cash.

Brendan

 

[Clamball]

Get independent valuations, decide on 2 or 3. Take the average figure. Have two separate solicitors, sell to him for the agreed price.

 

[Brendan Burgess]

Get independent valuations, decide on 2 or 3.

No. Not in a family transaction. Why go to this expense? Revenue is very unlikely to ask for it unless it's suspiciously high or low.

 

[T McGibney]

Get independent valuations, decide on 2 or 3. Take the average figure.

No way, it's quite sufficent to rely on a single independent valuation from a valuer whom you know is prepared to robustly defend it if it is challenged.

Apart altogether from the expense of commissioning multiple valuations and splitting the difference, by doing so you'll be effectively contradicting the evidence you've purchased and paid for, and having no valuer responsible for and available to defend the valuation you ultimately specify.

 

[Dr Strangelove]

I Revenue is very unlikely to ask for it unless it's suspiciously high or low.

Well……€160k is low value for a house!

Most on daft or my home at that price are in a state of dereliction.