Updated October 2026 · Fraser Bond
Family property
Possible, but mortgages, stamp duty and inheritance tax all need planning
- Buy at market value with a specialist family or regulated buy-to-let mortgage
- Buy with a "gift of equity" discount from your parents
- Parents release equity instead and stay as owners
- Sell and help parents downsize or move to retirement housing
- Stamp duty surcharge if you already own a property
- Capital gains tax when you later sell (not your main home)
- Inheritance tax: discounts may be gifts; gifts with reservation if parents live rent-free
- Written occupation agreement for your parents
- Clear plan for care costs and future sale
- Independent legal advice for both sides
Lenders vary in how they treat gifted equity. The gift may count for inheritance tax.
Frequently asked questions
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Handy tools
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Tell us your budget and area and hear about homes first.
Can I get a mortgage to buy my parents' home?
Some specialist lenders offer family or regulated buy-to-let products, but options are limited.
Do my parents have to pay rent?
If they live there rent-free after giving you value, inheritance tax rules on gifts with reservation may apply. Take advice.
Is equity release a better option?
Sometimes. It lets parents stay owners and release cash, but it has costs and affects inheritance.
Exploring family property options?
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