can myself and my siblins buy our parents house from them

[steviesky96]

My parents house is worth 95k and has 10k left on the mortgage can myself and my 3 siblins buy the house from them and they remain in the property. They have 11 years left on the mortgage but are struggling to meet their payments as they have other financial commitments, cccs have taken over their finances but they are still paying their motgage and are not in arrears both my parents are of ill health my father retired through ill health 20 years ago and my mother is still working at present but retires in December.

[dzug]

You can do whatever you like. It's your money.

However there may be unwanted side effects with regard to your own tax positions (there is the potential for capital gains tax when you come to sell the place) and inheritance tax (though not with the sort of value you have quoted)

If they sell you the house rather than giving it to you there shouldn't be any care fees problem.

[Peter Pedant]

This is a very complex area and you should discuss it with the lawyer you hire to transfer the property.

1. Selling it to you for 65K ie under market value. One of your sibs is bound to suggest that. All sort of things get deemed in that case and I do not advise it. Like if they go into care it is still deemed to be theirs.

2. sell at market value - are you really planning to give your parents 99k ? Then it is straightforward. IHT irrelevant as it has been disposed of, and anyway is still under the IHT lmit of �300 000
however - capital gains - it is a disposal for CGT purposes however the CGT payable on disposal of your only residence is zero.
That is your parents CGGT position - nothing

however after a few years, you three sibs will have a CGT liability as the value of the house goes up. This will kick in if and when you sell it. however if your parents die IN the house and then yousell it, there is a little known exemption - dependent relatives die in a house owned by A B and C, then A B and C do NOT pay CGT under one of the finance acts. Obviously you will have to check that this exemption still appplies. Rent should NOT be paid.

If they go into care, then clearly they dont die in a house owned by relatives and the exemption doesnt apply and you three get dinged for CGT. May be worth it.

This is a complex tax area - not surprisingly - as the govt has worked hard to prevent parents giving the house to the kids and then going into care -which is very expensive.