Selling A Home With Parent-Child Ownership......

CakeEatsDog

Hello MSE folks, I hope you are well.

I own a home with my parent and I was wondering if anyone has any insight into the process if we were to sell. We have the house split between us due to a will of a deceased loved one, and if we move this will be the first time in dealing with the split ownership.

For instance, if we wished to downsize (as is likely), yet have me as the sole owner, is that feasable?

Thanks in advance.

audigex

You simply sell the home and take the proceeds as described in your ownership agreement. eg you have half each.

What you both then do with your half of the money is your own business: presumably yours goes into the new smaller home. Your parent may add to that if they wish as a gift, or do whatever else they like with it.

Once you sell the house, you're just two people with some cash each: you can spend that money individually or together.

CakeEatsDog

Thank you for you response, audigex.

We were also wondering about if we wanted single ownership, not shared, AND the price was more than one of us had individually from the sale.

Can a person transfer or "give" another person thousands of pounds from a house sale like that, in that tiny window between selling a home? It seems like such a simple act but I'm unable to find reference to it anywhere.

I suppose it has potential tax implications, but finding out which seems hard to fathom. Anybody?

xylophone

You and your parent live together in the property as your principal private residence?

You own it as tenants in common?

You wish to sell the property and buy another which will be in your own name only but will continue to live together?

In effect, your mother will have made you a gift of her equity?

dancingfairy

Do you actually own the home yet? or is it in the name of 'the exectutors of fred blogs'? i believe this may make a difference to things.
I think you need to know exactly what the will stipulated - was there a lifetime interest, was it to be sold and each person get half the money or what?
In theory one of your could gift some of their share to the other one which could be used as equity for another property upon the sale of the first one.
Some issues you will need to consider:
cgt
inheritance tax (if not already sorted).
deprivation of capital. I assume it's your mother giving away her share (or part of her share)? This can cause problems if she needs to claim benefits in the nearish future of goes into a care home as she may be seen to be intentionally giving away her assets to avoid paying her fees.
To be honest it's not a straight forward thing you are proposing and you will need legal advice. You will need to get legal advice seperately I believe if your mum is giving her share (or part of her share away).
df

CakeEatsDog

Goodness, the conversations my mother and I have been having were in hopes of simplyfiying things--owning another property jointly seemed so cumbersome. Especially as we had wanted safety and security as I reengage with higher education and she approaches retirement.

A lot to take in, whew. Anyway.

We would be intending to live together, at least for a while; I do believe we own the property, I signed a document years ago as my share was held in trust for me; I do happen to own the greater share, also.

Hm, we would need legal advice seperately? As in different professionals for different fields of advice--home ownership and something else?

xylophone

The answer to all my questions is in the affirmative?

If your and your mother's PPR then the gift of the equity would not have CGT implications.

However, there could be IHT implications - this could not be a PET because your mother would continue to live in the property.

If she should require to go into a home and was looking to council funding there could be a deprivation of capital implication.

If you should ever have financial/marital difficulties your mother might find herself with problems.

Easier all round to sell and own the new property as tenants-in-common in the same proportions?

CakeEatsDog

Several things for my mother and I to read up on, and talk about, it seems.


Thank you again for the responses.