Hi
I hope someone can offer some help
In 2006 my now wife and I bought an apartment. Current mortgage €280k value on a good day €180k - NE €100k
In 2012 we had twins and the place was unsuitable. My father lived alone in a large 4 bed house so we moved in with him and rented the apartment out. We have excellent tenants though make a large loss on the rent
My Dad is now 66, he's a carpenter with arthritis in his hands. He has no pension so no means of officially retiring bar whatever state pension would be which he's not expecting to be much
We would like to buy the house from him but are not optimistic of getting a mortgage of anywhere near what we'd need (we have good salaries and no other debts but at the moment our childcare costs are €2k a month)
So my Dad wants to retire and we want to buy his house - is it possible to come to an arrangement where we pay him, say, €2k a month like a mortgage and he signs us over the house now?
The house is worth €600k, we were thinking if he gifted us the value of €120k and we agreed to pay him €24k a year for 20 years = €480k
My dad has a whole of life policy worth €120k also whuch he could leave to my brother. So we would both get €120k from our father in the end
In the event my father didn't survive 20 years I would pay the balance of the agreed amount between myself and my broher though i presume there would be a tax liability. Obviously my Dad would have a home with us for life
Can this be done officially? What would the tax implications be?
I'll post our salary details now if it helps
Thanks
LC
I hope someone can offer some help
In 2006 my now wife and I bought an apartment. Current mortgage €280k value on a good day €180k - NE €100k
In 2012 we had twins and the place was unsuitable. My father lived alone in a large 4 bed house so we moved in with him and rented the apartment out. We have excellent tenants though make a large loss on the rent
My Dad is now 66, he's a carpenter with arthritis in his hands. He has no pension so no means of officially retiring bar whatever state pension would be which he's not expecting to be much
We would like to buy the house from him but are not optimistic of getting a mortgage of anywhere near what we'd need (we have good salaries and no other debts but at the moment our childcare costs are €2k a month)
So my Dad wants to retire and we want to buy his house - is it possible to come to an arrangement where we pay him, say, €2k a month like a mortgage and he signs us over the house now?
The house is worth €600k, we were thinking if he gifted us the value of €120k and we agreed to pay him €24k a year for 20 years = €480k
My dad has a whole of life policy worth €120k also whuch he could leave to my brother. So we would both get €120k from our father in the end
In the event my father didn't survive 20 years I would pay the balance of the agreed amount between myself and my broher though i presume there would be a tax liability. Obviously my Dad would have a home with us for life
Can this be done officially? What would the tax implications be?
I'll post our salary details now if it helps
Thanks
LC