Can I Sell My House To My Son For £1?
:quality(80))
Content Written By: Kirsty Rowett - Last Updated: 03/12/2025
You’ve come to the right place to discover everything you need to know about selling your house to your son or daughter for a nominal fee of £1, from the legalities and costs to the pros and cons.
Let’s dive right in to see if it’s a good route for you and your family to take.
Table of Contents
We’re honoured to have been featured in the media by several leading outlets and major publications
:format(webp):quality(100)){kind=logo}
:format(webp):quality(100))
:format(webp):quality(100))
:format(webp):quality(100))
:format(webp):quality(100))
:format(webp):quality(100))
:format(webp):quality(100))
Is it legal to sell your house to your child?
Yes, it is completely legal to sell your house for £1 to your son or daughter in the UK, but there are criteria to meet if you are to do it properly. Sadly, you can’t just swap a pound for a set of house keys and be done with it (if only).
Property prices are seemingly only ever heading in one direction, so it’s increasingly difficult for young people to get on the property ladder. That’s why many parents who have paid off their mortgages and own their homes outright look to pass them on to their children for as little as £1 to set them up financially for the future.
If you are in such a position, your house is your asset to do what you like with, but you need to bear in mind the tax system in the UK and the difference between selling and gifting before you sign any papers.
Is selling your house to your child the same as gifting?
In effect, selling your house for £1 to anyone is a gift, whether they are your child or not—it’s more of a ‘consideration’ in legal terms to charge a single pound for it and call it a transaction. That said, it won’t be registered as a sale, as such, but you will still need to hire a solicitor to sort the legalities out for you.
What are the costs associated with selling your house to your child?
The £1 fee for the home is not the only amount of spending involved in the transaction, so here’s a breakdown of what you can expect or need to consider under different circumstances.
Legal fees for a solicitor
Any house that changes hands in the UK needs to have its deeds transferred to the owner, whether they are family or Joe Bloggs on the open market. So, you’ll need to enlist the services of a solicitor to help you with this, plus exchanging contracts and setting an official ‘completion date’ (seems like overkill, we know, but it has to be done).
Mortgage redemption
You’ll need to speak to your solicitor to discuss this with your mortgage lender before proceeding with a sale, as it’s technically not possible to sell your home for £1 if there is a mortgage outstanding on it.
If that’s the case, there may be early redemption fees to pay. One option is to sell the house for the value that’s left to pay on the mortgage, of course, so it’s worth talking through your possibilities with your lender and solicitor to ensure you’re doing the right thing for all involved.
Capital Gains Tax (CGT)
You may need to pay CGT if the house is an additional asset to your primary residence, so be sure to bear this in mind before you proceed. If it is and has long been your primary residence and you have agreed with your child that you will continue to live there, you might not have any CGT to pay.
“It’s the gain you make that’s taxed, not the amount of money you receive. For example, if you bought a painting for £5,000 and sold it later for £25,000, you’ve made a gain of £20,000 (£25,000 minus £5,000).”
Read more: Advice on avoiding CGT on your property
Inheritance Tax
Essentially, if you continue to live in the gifted property after the sale without paying the market rent, you may be liable to pay inheritance tax. This is when it is classed as ‘a gift with a reservation of benefit.’
Your child might also need to pay inheritance tax on the property if you die within seven years of the sale, so it’s not a clean-cut way of avoiding that dreaded tax. Speak to your solicitor or financial advisor to make sure you’ve covered every eventuality and the sale works for everyone. Your child may need to explore the possibility of selling the house after you die because of hefty inheritance tax bills, so it’s important to discuss this, too.
Read more: Rules on giving gifts when it comes to Inheritance Tax
Income Tax
The giftee of the property will need to pay income tax on it if they decide to rent it out, either to you or to a member of the public. You can also discuss this with your solicitor to make sure you’re doing everything right.
The pros and cons of selling your house to your child
Even if you are planning to complete the transaction for just £1, it’s still a very important decision with ramifications if done incorrectly, so here are some of the advantages and disadvantages to help you weigh it all up:
| Pros | Cons |
|---|---|
| ✔️ You can support your child financially | ❌ You have certain criteria to meet |
| ✔️ You can help your child avoid large tax bills | ❌ You can (theoretically) get evicted |
| ✔️ You can keep the house in the family | ❌ There’s extra risk if your child is married and could get divorced |
You should always seek the help of a professional financial advisor to help you make the right decision for you and your family.
What can I do instead of selling my house to my child?
If you decide that selling to your child for £1 is not the right option for you, you can consider gifting cash instead, which can be used for a deposit for a house. Your child will have to declare this to their mortgage lender and may need to pay tax if it is over a certain amount.
“You can give gifts or money up to £3,000 to one person or split the £3,000 between several people.”
You might also consider buying another property outright for your child, perhaps funded by releasing equity from your existing property if you’ve paid the mortgage off in full. You also have the option of selling it quickly to a cash buyer if you need to downsize before passing a property on to your child. This can be particularly useful if you plan to continue living in the property owned by your child, but the one you’re in is just too big.
To find out more about how to sell your house quickly, you can read our guide to how we work here. Read our testimonials as a cash buyer company to hear what we’re all about and decide whether or not it could be an option for you.
Frequently asked questions
Should I gift my house instead of selling it?
Gifting your property to a family member, such as a child, can be a good way to set them up financially for the future. Many homeowners and parents choose to do this as a means of helping their children, since it is so difficult to get on the property ladder as a first-time buyer. Selling to a random buyer on the open market simply sees the property leave the family entirely and no benefit is gained for having paid off the mortgage for years.
Does Stamp Duty Land Tax (SDLT) need to be paid on a gifted property?
If the property to be gifted has an outstanding mortgage that exceeds the SDLT threshold of £125,000 and the new owner pays that amount for it, then SDLT will be required. If the property is going to be an asset other than the primary residence of your giftee, e.g. your child already owns a home, then it will be subject to SDLT. If there is no mortgage left to pay and the property is gifted to your child, for instance, there will be no SDLT to pay.
Should I gift my child money instead of a property?
Gifting money instead of a house can be a good way to manage your assets and the way they are passed on to your children. The gift of an entire house is a huge move, so it’s important that you’re all comfortable that they have the financial maturity to handle it.
Some people opt to gift smaller sums of money regularly within the tax limits to avoid inheritance tax, but the best options for you and your family will depend on your personal circumstances. You should discuss these with your solicitor before making any decisions or promises.
Edit Log
03/12/2025 - Content rewritten by Kirsty Rowett
03/12/2025 - Content updated in line with Editorial Guidelines (Reviewed by Mathew McCorry)
:quality(50))