The Accidental Smallholder Forum
Community => Coffee Lounge => Topic started by: mikethesmallholder on March 22, 2017, 07:53:30 pm
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Hi All,
Just after some help or advice on a situation I am facing in 2017 and wondered if any of you guys have been through it or know some information
Situation-
My wife’s family have a farm with a farm house and then 4 outbuilding, the outbuildings have full planning permission and working drawings are being done now to convert one of them for my wife’s mum and dad to move into once complete. The idea is that we (myself and my wife and out child) will sell our house and buy/move into the farm house.
Questions –
· what’s the best way to do it?
· Obviously my wife’s family don’t want to sell it at full market price but do need enough money out of it to allow them to complete the barn conversion
[size=78%]Any help would very much be appreciated[/size]
Mike.
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Get three local agents to value it, then use the average (or the top or bottom one) as a basis to negotiate a priice to suit both parties. And say a very big thank you to your inlaws :innocent:
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There's a lot of little wrinkles you might use here to reduce mortgages and stamp duties etc so probably worth having a word with your solicitor.. he shouldn't charge you for a chat since he's likely going to be dealing with some of the sale aspects. You might want to split the property freeholds of land, underpay a tad on the value to reduce taxes, slip some some cash under a table if you don't need to raise all of it on a loan - just not being so greedy that it draws attention. Then you have aspects of gifting limited anounts per year or gifting the newly seperate barn freehold over the longer term. It's also worth thinking about how splitiing the property might affect rates and even power bills compared to more complicated constructs such as buying/building and renting to your folks - but that brings in aspects of renta incme and taxes and possibly capital gains taxes on the barn conversion later
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One off gifts between family is allowed outside of taxation. as long as its not for avoidance of tax. which as the family will all be coexisting together is not a loophole - its just normal life imo.
Baz
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Thanks PGkevet and Bazzais. i think we will be purchasing just the house for now and then buy a field every year of them. but think a chat with a solicitor is good as the only advise upto now is of sales agents who want to value and sell it