How do I sell my house to a family member?
When selling to a stranger, there are no personal ties to the buyer and the main aim of the process will be to make as much profit as possible. When selling to a family member, the motives or ideal outcome may be slightly skewed. In fact, the entire selling process can be different when selling to a family member, so keep on reading so that we can help guide you through the process of selling your property to a family member.
The first step is to make sure you have skilled and qualified people aiding with the sale, meaning estate agents and solicitors. They are professionals who are trained and well prepared to enforce the contracts and fees, prepare and finalise paperwork, review documentation and ensure the property sells for a fair market value. They are experts in their industry and can guide you through the selling process whether you’re a house selling wiz or new to the process.
Another important step is to get a fair value of the property. An independent third party should evaluate the home to avoid any bias in the decision-making process. A professional will be able to investigate the property to determine the value based on size, location and shape etc. They will also identify the position of the property and its views. Other contributing factors in deciding the valuation would be whether the sun falls on the yard and the exposure to noise. The appraisal will need to be paid for, either by the seller or the buyer, but should remain independent and neutral. Also, be aware that the price of the property would have likely changed since you purchased it.
When setting a price to sell the property the valuation will need to be considered, however, it may be a case where you would like to sell your property below market value to help a mainly member get on the property ladder. Although, there are tax implications when it comes to selling your property below market value as it would be considered a gift. The ‘gift’ would be the difference between the fair market value of the property and the price you decide to sell it at, and capital gains tax would be payable on that difference. CGT is directly related to your income states, so if you’re a basic rate tax pater the CGT will be at 18%, whereas a higher rate taxpayer would be liable for a 28% charge. See below for an example:
If a home is worth £200,000 but you sell it for £100,000, the gift aspect of this sale would be £100,000. As a basic rate tax payer, you will be subject to 18% CGT on the gift.
18% of £100,000 is a total of £18,000 to pay in CGT.
Selling your home can be stressful enough without adding all the additional difficulty of selling to a family member were tensions can arise due to factors such as setting a price for the house to be sold. For those looking to sell their home in the quickest, cheapest and most convenient way, FastCash4Houses can help. With us, you can sell your property in a quicker time frame with no estate agent or legal fees to pay. To get your free no obligation valuation today and to find out more about how we can help then visit our website at https://fastcash4houses.co.uk/ or get in contact with us to speak to a member of our team directly on 01204 294356 or [email protected]. At FastCash4Houses, we want to support you every step of the way as you sell your property.
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