Buying a property Does it have to be market value or any value?

[lucy1manship]

Hi All

My in laws initially bought a house for us (mortgage and we pay that) but now the time has come to buy the house from them (now we are able to get a mortgage).

The sticking questions is - my father in law seems to think he has got to, by law, sell the house at market value? I have sought advice from my solicitor and he has advised that he can in fact sell at whatever price (i.e the price he paid for it initially). if he really wanted to he could sell for a �1!

Does anyone now the answer so that I can approach the in laws with a concrete argument?!

Cheers

Lucy

[Gok Wan]

He can definately sell at any price he wants to, there is no law saying that he has to sell at market value. Plenty of people sell at less, often just to get rid of the house quickly.

I can see why he wants to sell at market value, he wants as much money as possible.

Incidently, how come you don't believe a solicitor but are prepared to take the word of someone on an anonymous website?

[lucy1manship]

Hi Thank for your answer - I wanted as much ammo as possible - my father in law is adamant he has to sell at market value ALTHOUGH he doesnt want to make any money out of us?!?

He said his hands are tied and theres not alot he can do - but im saying there is!!!

[redcrx]

if the price had gone down and the property was only worth half what he paid for it, would he still be insisting he can only charge you market value??? ask him that

[creampie]

dude i bought my parents house for 30k 3 months ago. market value is 130k.

He is talking rubbish?!

[lucy1manship]

Thanks guys - he is talking about capital gains tax @ 40%and this being a compounding problem etc etc and the longer we leave buying the house the bigger the problem gets...

Ive explained that the tax is now 18% and not 40% and this is after their allowances so even if he did insist on buying at market value it is only a problem after this.

He wont have it....

[Eve]

I'm a solicitor and you can sell for whatever price you want, even transfer it for nothing. I specialise in below market value property transactions and do them on a daily basis.

[fredpuli47]

You all need an accountant, not a solicitor. Of course someone can transfer a house for whatever price they please or no price. That's simple law.(They can give a house away for nothing:dead people give houses away all the time, by their wills, and there's no reason why such gifts can't be made between the living !)

I'm no accountant but it seems common sense that that's not where the problems would lie. Revenue and Customs are very interested when a property is transferred at far less than its market value.They are especially interested when the transfer is from one member of a family to another. Such a transfer can be seen as an attempt to avoid capital gains tax either on the profit or by claiming a loss to be set off against future gains. It also may have implications for inheritance tax should the transferor die within the requisite period.

[lucy1manship]

Hi Everyone - sorry for the delay been away and thanks for the replies so far. Fredpuli I think you are right and the in laws are worried about exactly that.

At the end of the day we have said we will pay any tax due anyway. He still says he has to sell at market value.