Adding someone to the property title

jayne_just_learning

I have a 3 bed house that I rent out and my son is saving to get on the property ladder (with a friend as prices down here are too hgih for him on his own). The equity in the rented house and any increase in the next 20 years is kind of earmarked towards my old age but I would like to help him out if I can.

I was considering selling him and his friend the house and retaiing 20% stake in it as my investment (problem here is 2 young blokes in first house does not give me confidence of someone taking great care of my share!! Secondly in doing this I am helping his friend considerably and wonder if I should be doing that as I have no guarantees he will stay in gainful employment etc risks you take with family but maybe not with others??)

My son works for a bank and can get good rates/discounts. So another option I considered was for him to take a buy to let mortgage out which would pay off my mortgage. He could then rent out 2 rooms to give him some money to help with the mortgage and bills. This would mean I have effectively given him the whole of the remaining equity in the property which of course I may well need in the future and presumably there might be tax implications on that gift.

My preference might be for option 2 but for the property to be in joint names. so I add my son to the title and we take out a joint buy to let mortgage and he lives in it and rents as above but I do retain some of the equity for when it is sold or further down the line he might make enough to buy me out etc. If we went for this does anyone know if we would be liable for stamp duty if he were to be added to the title? Or see any other cons that I ought to think about?

I don't want to discuss it with him until I am clear about what to do as he may get his hopes up too high.

Any input appreciated :rolleyes:

Jayne

clutton_2

i think you need proper legal advice here.. property in joint names can produce some really complex legalities if not set up properly in the first place

we had a heartbreaking post last year from natasha who spoke of an elderly parent who was evicted by their own son

i think you also need to clarify exactly what you want (maybe you dont know) but i have read your post 3 times and still dont know !!!