Wanting to sell half a property

Twiglet0309

Hi
I own the freehold to a property outright. I'd like to sell half share to my Dad and allow him to live there rent free for the rest of his life. Dad is currently renting and has recently inherited some money. He is keen to move in to my property and I will be sole beneficiary upon his death so his half will revert to me. How can I do this and protect both our interests?

Dan-Dan

Twiglet0309 wrote: »

Hi
I own the freehold to a property outright. I'd like to sell half share to my Dad and allow him to live there rent free for the rest of his life. Dad is currently renting and has recently inherited some money. He is keen to move in to my property and I will be sole beneficiary upon his death so his half will revert to me. How can I do this and protect both our interests?

Why do you need to sell him anything?

Pixie5740

I'm assuming that your father can afford to buy half the property outright without a mortgage. If that's the case then you can either own the property as joint tenants or tenants in common with a 50/50 split. As joint tenants the property automatically goes to the surviving joint tenant(s) when a joint tenant dies. With tenants in common anyone can be left the deceased tenant's share.

There's a form you have to complete for the Land Registry that will allow you to transfer part of the property to your father.

Twiglet0309

Pixie 5740 thank you.
Dan Dan my Dad is notoriously bad with money. His inheritance will not last long and I fear if I agree to simply rent my property to him, one his windfall is gone, the rent will become rather sporadic.

Dan-Dan

Twiglet0309 wrote: »

Pixie 5740 thank you.
Dan Dan my Dad is notoriously bad with money. His inheritance will not last long and I fear if I agree to simply rent my property to him, one his windfall is gone, the rent will become rather sporadic.

I cannot say i know the answer , but should you Dad ever need residential care , is your `investment` protected?

Perhaps someone can advise...

Twiglet0309

Dad going into care would indeed be a consideration as he is not in the best of health. Any advice gratefully received.

Pixie5740

Age UK cover this in Section 3.1 of their factsheet about paying for residential care:

If you jointly hold capital with another person or people, you and the other joint owners are generally treated as having equal interests in that capital at the time of the means test.

There is an exception for jointly owned property, which is calculated in terms of the present sale value of your beneficial interest. This means the part you own that could be sold with the proceeds of sale going to you.

http://www.ageuk.org.uk/Documents/EN-GB/Factsheets/FS10_Paying_for_permanent_residential_care_fcs.pdf?dtrk=true

Jenniefour

Folks, check out other post by OP today. Two different stories.

Mattygroves2

Twiglet0309 wrote: »

Pixie 5740 thank you.
Dan Dan my Dad is notoriously bad with money. His inheritance will not last long and I fear if I agree to simply rent my property to him, one his windfall is gone, the rent will become rather sporadic.

Your original post states that you are intending to let him live there rent free. What it sounds like you're trying to do is get your hands on his inheritance before he spends it. Not something I'd want to do to my parents no matter how bad they are with money.

There are other cost implications:
- If you don't already live in the property a potential CGT bill for you to pay on a transfer of ownership
- your Dad may have stamp duty to pay as well
- if you charge him rent you'll have to pay tax on it

That is without the care home costs issue which looks like it could end up with his half being sold (effectively forcing a sale of the property) to fund his care.

troubleinparadise

OP's other thread as per Jenniefour's post:

https://forums.moneysavingexpert.com/discussion/5158762

xylophone

If the father buys into the house see.

http://www.findlaw.co.uk/law/property/buying_property/500189.htm

and http://www.ageuk.org.uk/Documents/EN-GB/Factsheets/FS38_Treatment_of_property_in_the_means-test_for_permanent_care_home_provision_fcs.pdf?dtrk=true

page 9 onwards.