Buying a Flat with my 80 year old Father

[QCG1]

My eighty year old father wants to sell his house in Hertford and move to a flat in North London (not too)near me.

The procedes of the house in Hertford aren't enough to pay for the new flat.

Can I make up the difference in the value of my fathers flat and take a share in the property? Would my dad have to pay me rent for my share of the property? (I'm hoping the answer is no.)

Would this share that I own be recognised for inheritance tax purposes?

Other than the slim chance my dad falls in love and marries a busty blond(v.unlikely but good luck to him) are there any other things I should consider?

QCG1

[Clitheroekid]

Can I make up the difference in the value of my fathers flat and take a share in the property? Would my dad have to pay me rent for my share of the property? (I'm hoping the answer is no.)

Well I'm afraid I'll have to disappoint you, as the answer is yes.

To the first question You could buy in joint names, but the problem with doing so is that (assuming you own your own property) the purchase would attract the additional 3% stamp duty land tax.

It would probably therefore be more sensible to lend your father the contribution, and secure it with a mortgage over the flat. That way the property would be in his sole name and he would just pay the standard amount of SDLT.

No, your dad would not have to pay you any rent. It's entirely up to you whether he does or not.

Would this share that I own be recognised for inheritance tax purposes?

I'm not sure what you're asking. The loan (or share if you were to become joint owners) would be an asset of yours, so that if you were to pop your clogs the value would form part of your estate. But if your concern is that it would somehow form part of your father's estate then no, it wouldn't, as you're not giving it to him.