Obviously this whole project would be pointless if we have to involve
ourselves in expenses of probably several thousands of pounds in
Stamp Duty, surveys, searches, etc. Hence my question.

There may be issues if you are subsequently found bankrupt, as the disposal
of the property below true value may be illegal if you are doing it to
shield your assets from your creditors. It is illegal to give your
possessions to your family, be made bankrupt and then have it gifted back.
Not that every famous person in difficulties hasn't tried it.

Given that you will be living in the house after the transaction, it may
well attract attention that the deal is not what it seems. If you are likely
to need long term care or income support, they might be extremely suspicious
that you are artificially disposing of property to maximise your claim.

This situation is too involved to diy. You may get a more knowledgable
response in uk.legal.

Christian.