• Exchange With Purchase

    By Guest on 11th Apr 2016

    I am exploring the possibilities of exchanging properties with my mother and was wondering what I would need to take into consideration.

    The reasoning

    After the loss of my Father some four years ago, my Mother has lived in the property. It is now clearly too large for her to look after both in terms of size ( 4 bedrooms ) and gardens which are in the region of 1 acre. With this in mind my mother has suggested that we should do an exchange of sorts. Whereby I take over the property. and from the sale of my property purchase a suitable bungalow for her.

    My property is also too large for her so to do a direct swap is not really a solution ( four bedroom house) Ideally, she would like a two / three bedroom bungalow.

    Would it be possible for me to sell my house and purchase a bungalow (no mortgage) and at the point of exchange transfer the ownership of my mother's property to myself and the new property to my mother.

    Is there other options to achieve this

    Approximate Property Values

    Mother's £500,000

    My current property £300,000

    Potential new purchase £200,000


    My thoughts are,

    Firstly Is this allowable ?

    What are the implications with regard to inheritance tax / social care ?

  • 1 Answers

    By Guest on 11/04/2016

    Do you intend that you will own he bungalow that your mother lives in or will you own it? If you will own it is your mother happy to take it on trust that that you will allow her to remain in occupation or will she expect some form of protection (such as a lease for life)? Will you be paying your mother anything for her property? If so how much (you will need to consider the stamp duty land tax implications of you owning more than one property). If you can clarify these points I can try and guide you further.

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