A lot of people are looking to sell their house under market value right now. World events mean that it is difficult to get on the property ladder, particularly for young professionals looking to buy their first home. This has meant that parents want to help their children and are looking for legal ways to allow them to become a first-time buyer.
For example, a popular question people ask is; can I sell my house for £1? Well, despite what you may think, the answer is yes. Let’s take a close look.
Selling A House for Under Market Value
It is legal in the UK to sell your property for £1. Therefore, if you wanted to help your child get on the property ladder, you can sell them your home at whatever price you both want to agree on. This can allow your child to get on their feet and be a homeowner.
However, there are important things to know about selling your house this way. Namely, there are going to be other costs you need to be aware of. Indeed, this is going to mean while the sale of the house can stand at £1, there will be more money involved when it comes down to other processes. In particular, we are talking about paying stamp duty, legal fees and there can even be inheritance tax.
Other Costs to be Aware Of
We have mentioned that there are going to be other costs to consider if you choose to sell your property for £1. It is important to look at them in more detail so that you can work out if this fast house sale is going to work.
Are you still paying a mortgage on your home? This is something that you are going to have to pay back before you can enjoy a fast house sale for £1. In order to sell at this price to a child, you will need to own the house outright without any loan over it.
There are always going to be legal fees you have to pay when you are selling property. For example, you will need to transfer the ownership of the home to your child. Solicitors have to take charge of this and it will cost money to hire their services.
Capital Gains Tax
Do you have more than one home? Well, you may be subject to capital gains tax. This is a type of tax you pay on the profit you make from selling a home. Unfortunately, it will not matter that you only sold the house for £1. Instead, the tax you need to pay is worked out from the house’s market value.
Other ways to Sell Your Home
If you really want to help your child and give them the keys to a new home, it may be better to explore other options. For example, there are ways to sell your house fast and you can help them make a deposit to become a property buyer. Zoom Property Buyer offers you cash for your home and you can sell it within seven days.