Parents transferring Deeds of their House and Tax options

B

Brian_R_79

Registered User
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Hi

Looking for some advice/best options to avoid paying too much tax in the following scenario.
My parents are getting old and have a 3 Bed house which they don't have money to refurbish over coming years.
They have this idea to give me the house now and let me move in with my family and build an extension where they can live.
I already have a house with am mortgage remaining of €210,000 and house value of about €300,000
Would I be able to avoid inheritance tax if I move in with them permentely?
I would also look to keep me house and rent it out as an investment. Would I be able to get a second mortgage on my parents house to build the extension and update the house?

Thanks
 
What’s the value of your parents’ house and what’s the value of their other assets?

Are you an only child?

What’s your income?

It could be a scenario where the Dwelling House Exemption might apply but depending on the values, you might not need it.
 
Hi Gordon

I am an only child. My parents house is worth about €330,00 - €350,000.
My income with spouse is approx €110,000.

We are also thinking about moving to a bigger house and wondering if this would be an option.
Our current Mortgage is €1,100 per month but we could easily get €1,800 to €2,200 per month on rent.
My parents house would need about €170,000 to refurbish and make liveable fo all of us.
 
It should probably work so.

Tax is fine, assuming your parents don’t have other assets; do they?

If your folks are happy to do this, then that’s fine.

Banking is really the big issue, and it comes down to whether you:

a) Accept a gift of the property and keep your own place

b) Accept a gift of the property and sell you own place.

You could just sell your own place, pocket the €90k, and then simply combine it with new borrowings of €80k to fund the refurbishment.

A bank would lend you guys the €170k so you could keep your existing place.

You just need to run the numbers to ascertain whether you should.
 
That don't have any other assets. We are still considering this option.
We would like to keep our existing house as long as we could if the rental market is ok.
We'll start to get to get some quotes from builders and run the numbers to see what works best.
Thanks for your help Gordon.
 
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