Mercury39

I am planing to buy a part share of a property with my parents (effectively offering them similar concept to a reverse mortgage). It will be their only property, purchase is all cash. Stamp duty has tripped us up, appears that 2nd home stamp duty rates will apply to the entire purchase, not just the part that I will be paying for, which would like to avoid (not intentionally attempting to evade tax, but this doesn't feel like the intent of the higher rates - I wont live there or charge rent). Other options proposed have been some type of trust or a mortgage from me to them. Anyone with experience or advice in this area and/or UK solicitor suggestions.

Russet

We did a similar thing but just as a legal charge (effectively like a mortgage). We do not have any part ownership in the house. We had to use another UK Solicitor(different to the closing solicitor) to draw up a legal charge document for us to sign, outlining the 'loan' and any interest charges. It was then approved by the closing solicitor. The charge is registered with the land registry so the property cannot be sold without contacting us and settling our 'debt'. Stamp duty was just that paid by the 'owner'. The charge was a number of years ago so not sure if rules have changed but it is still in force. It was fairly straightforward and the only cost was that to the other solicitor for drafting the charge.

durham_lad

could you simply gift them the money and they can add you later as tenants in common or similar?

Mercury39

@Russet - thanks, this is now the method we are using.
durham_lad We did review the gift option but as it actually is not a gift it was created other tax issues!