We’ve previously written on this blog about gifting a family home and the options to consider when doing so, but we would also like to address the topic of selling a house to a family member. With the familiarity and high-level of trust, do you need to go through all the usual checks or hire a conveyancer?
Read more: Gifting the Family Home: Options to Consider
Can I Sell My House to a Family Member to Save Money?
Whether it’s parent to child or sibling to sibling, selling a house to family can be a great cost saving affair.
There is the question of whether can you save money on the conveyancing process. It is possible to handle the conveyancing process yourself, however parts of the process may only be legally carried out by a trained solicitor, if you are having a mortgage.
Further to this, as the process involves a considerable amount of paperwork many people relinquish this duty in order to ensure this is dealt with accurately by a professional. A conveyancing specialist will ensure that the National Conveyancing Protocol is adhered too and will protect your interests, even with complex cases.
Another way you may try to cut costs is by avoiding a survey, however this can be a useful way of avoiding expensive surprises. At the very least, the buyer should still get a Condition Report, despite being familiar with the property and its quirks.
It is important to note, if you decide to transfer the property as a gift and there’s no consideration, stamp duty may not apply.
Is Selling the Property Under its Value Illegal?
You can sell your property for any amount you wish. However, despite the assumption that selling undervalue is a nice thing to do that can help the buyer out financially, this can cause some complications.
HMRC will look at the value of the property when selling rather than the price that is paid, and therefore selling a high value property well below its market value can be seen as an attempt to avoid capital gains tax, stamp duty and inheritance tax. If you’re selling a property under the market value and you have any tax related queries, we would advise to speak with an accountant.
Any Further Questions?
If you have more questions or would like to learn more about conveyancing or memorandum of gifts, please contact our trained solicitors by calling 0808 178 2773.