Selling your property to a close friend or family member might seem like the perfect solution. They already know what they’re getting, and you can save on professional fees while ensuring your beloved home is in good hands. But hold on a second, it’s not as simple as it sounds.
Let’s dive into some of the potential pitfalls you should be aware of if you’re considering selling to a loved one.
Why sell to family or friends, you ask? There are plenty of reasons. Maybe you want to help your child step onto the property ladder, or you envision keeping the property within the family for future generations. Perhaps you believe you can avoid the costs associated with selling on the open market, or you simply want to offer financial assistance. Whatever your motivation, brace yourself for potential fallout.
Now, if you think about selling your property privately without an agent, think again. Sure, you’ll save money on agency fees and avoid the hassle of viewings. However, selling to someone you know may not fetch the best price for your home since there won’t be any competing offers.
Without the expertise and marketing skills of a professional agent, you’ll never know the full potential of your home on the open market.
Let’s talk taxes for a moment. Did you know it’s perfectly legal to sell your home to a loved one for a mere £1? Many people have done it in the past to support younger generations. However, this act of kindness comes with significant tax implications for both the seller and the buyer.
Now, we won’t delve into the intricate details of UK tax laws, but suffice it to say that if you decide to sell to someone you know, it’s an area that requires careful research to avoid stirring up trouble with HMRC.
And what about the potential fallout? Selling any property comes with its fair share of risks. But when you add a personal relationship into the mix, things can quickly become uncomfortable.
Imagine this scenario: You go for a property survey, and it uncovers unexpected issues. What if you and the buyer can’t agree on the price? Tensions may strain the relationship.
Consider this too: How well do you know your friend or loved one’s financial situation? What if they can’t sell and you get stuck in a chain? Are they even eligible for a mortgage based on their credit history? Just because you’re great friends doesn’t necessarily mean you’ll make great business partners.
When you sell through an agent, you’re spared from dealing with these complexities. They handle this part of the property purchase, getting you the necessary answers without making it feel like you’re prying.
If you’re ready to sell your property, our team is here for you. We’ll take on the stress and hassle so that you can breathe easy. Reach out to us today!
