Re: House sale to finance extension of daughter's property

In article <MJfeg.77034$wl.71797@xxxxxxxxxxxxxxxxxxxxxxxxxx>,
Ronald Raygun <no.spam@xxxxxxxxxxxxxxxxxxxxx> wrote:

There's another way of looking at it. It's conceivable that the "extension"
is really what is more commonly referred to as a "granny flat" and so does
not form part of the Y household.

The wording "there may be some money left over" suggests that there might
not, or might not be much. I would have thought that extending a house to
create just one additional bedroom, and perhaps an ensuite bathroom to go
with it, would cost relatively little, likely not enough to gobble up the
lion's share of the sale proceeds of a whole house or flat. This leads me
to suspect that the extension is likely to be more substantial, creating a
self-contained flat under the same roof, with its own kitchen, sitting room,
etc. It could in principle form a completely separate property, in effect
turning Y's presumably detached house into a semi-detached property of
which the granny flat would form the other half and could be wholly owned
by Mrs X.

In such a case there need not be any gift as such at all, though Mrs X
might be minded to leave her semi to the Ys in her will.

The extension work (a large bedroom over the garage and a family room at
the rear) will be integral with Mr & Mrs Y's home.

Other home improvements will be carried out at the same time (replacing
the existing double-glazing, central heating and kitchen etc.).

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