Q We have finished paying our mortgage and now own our home outright. We want to sell and downsize in about a year.
My daughters and their partners are desperately trying to get on the property ladder and are saving hard. Our first plan was to sell our home, buy somewhere for us to live and give both our daughters £30,000 each from the sale of the house.
We then thought we could we sell the house to our eldest daughter less the £30,000 which would have been her share, still give the youngest one her £30,000 share and buy somewhere smaller for us. Would this be possible?
My elder daughter and her partner are living with us at the moment rent free to give them a chance to save even harder. Could we sell the house to them as if they were a normal buyer? SM
A Yes, you can sell your house to your daughter and her partner in the same way you can sell to a complete stranger – and the advantage of selling to your daughter is that you won’t need to pay estate agent’s fees.
However, whether your daughter and her partner will be able to afford your house – even with the “gift” of a £30,000 discount – depends on how much they manage to save and how big a mortgage they can get, which in turn depends on their earnings. It may be simpler to go with your first plan of selling up and giving each of your daughters £30,000 in cash.