Can we sell our flat to our children for below market value?
We can’t afford to just give it to them, but they could jointly own it as an investment
Q My husband and I own a flat in London. Our children have recently inherited some money which they wish to invest in something. Between them all they could afford to buy our flat off us if we sold it to them for the price we bought it for five years ago. This would mean we would be selling it to them for about 25% lower than its market value. Can we do this? We cannot afford to just give it to them. What are the pitfalls for them in owning it jointly as siblings? We have tenants in the flat so they would get a modest income from it. PB
A Provided all your children are over 18, yes, you can sell your flat to them. If they’re not, no, you can’t because a child under 18 can’t own land or property in the UK. But assuming it is a possibility, whether you should go ahead with selling your flat to them at a discount price is quite another matter.