Beneficiary of house..use share re mortgage

syorkshirelass

I am very unsure about any of this so please forgive me. My brother and I are beneficiaries/tenants in common of our deceased parents property. We have a %50 share each.
I am trying to help my son get onto the property ladder and wondered if this (my share) could be used in any way to help? The house cannot be sold as someone is living there ( they are not a beneficiary) under a life interest.
The share in todays market would possibly be about £90,000. This is the same price as a house that he has seen and is looking for a mortgage of around 80%LTV (£72,000).
We have the deposit no problem.
The house share, as part of the trust, should be used for investment purposes anyway.
In a nutshell,
£180,000 house, old person living there, brother and I are the only beneficaries with equal shares who must invest so that the trust increases (if possible)
Anyone with any advice, I would appreciate it.
Thank you

hcb42

are you trying to release the equity to buy another property for your son - or simply allow him to have your share by selling it to him at £90K ? Sorry, I was a bit lost..

CLAPTON

what do you mean 'must invest so the trust increases'?
is there any money available to invest?
barring getting a mortgage on the property and investing the money I don't see what the trust expects you to do

if your son has sufficient deposit for his own property why are you linking his purchase to this trust?

syorkshirelass

I am not sure myself! Just sat and thought that there may be a way that could help him. My parents will stated that the trust fund could be used to purchase another house and that would be an investment.

syorkshirelass

Thank you for your reply. Thought that there may be a way but perhaps I need to speak to a solicitor as to what I can and cant do with my share. I have thought about selling my share to my sister and then just giving my son the deposit so he will not be as strapped for cash.

CLAPTON

syorkshirelass wrote: »

I am not sure myself! Just sat and thought that there may be a way that could help him. My parents will stated that the trust fund could be used to purchase another house and that would be an investment.

This is very unclear: is there any money to buy another house without selling the existing one (which you can't do as you have a life tenant)?

holly_hobby

You need to get hold of the trust deed, and take it to a solicitor or suitably qualified adviser (advanced/diploma status) who will have the relevant qualifications and knowledge to deal with this.

Is my understanding correct, that the trust owns the house (?), thereby making the trustees the legal owners ?

Are you and your brother the trustees?

I assume the property is unencumbered (i.e no os mge). Have you approached the trustees about re-mortgage to a BTL (sorry .. buy to let mortgage) .. (obviously only up to your share of the property value). Of course this would then involve the agreement of your brother, mge fees, interest payments etc - and you would need to ensure that the BTL lender was happy with a "tenants in common" arrangement.

Best advice - I think that a forum is not reallly the best place to get the most quailified guidance on this, unless of course the responses come from those who hold G10, JO2 or AF1 - which are advanced tax and/or trust qualifications).

I really would seek some initial advice from your family solicitor and trustees & then a suitably quallified mge advisor.

Info I have given is for VERY general guidance, having not reviewed the trust doc or arrangements, and just to help you get a feel for what options are available (I am JO2 qualified by the way - but not a practitioner).

Hope this helps

Holly