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Buying my daughter out of her share

oldtup
oldtup Posts: 27 Forumite
in House buying, renting & selling
My daughter is recently divorced and has made no arrangements about the ex marital home, which she has moved out of. Her ex lives there with their children and she wants them to keep on living in the home.
They are currently joint tenants.
She has remarried and wants to buy a shared ownership home from a Housing Association. Their rules are that they will not sell to anyone who has a share in another home.
She has no money, whereas I do have enough to finance her purchase.
The logical way forward would seem to be for her to convert the joint tenancy into "Tenants in Common" and to sell me her share.
Any thoughts on this?
And whilst I know that the Tenants in Common change can be triggered without the consent of her ex, can the sale also take place without his consent?
Clearly everything is easier if it's agreed and I'm hoping that this is how it works out, but it's always good to have a fallback plan if not......
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Comments

  • HappyMJ
    HappyMJ Posts: 21,115 Forumite
    10,000 Posts Combo Breaker
    Is there a mortgage on the property?

    If there is then you would need to be on the mortgage with your daughters ex.
    :footie:
    :p Regular savers earn 6% interest (HSBC, First Direct, M&S) :p Loans cost 2.9% per year (Nationwide) = FREE money. :p
  • oldtup
    oldtup Posts: 27 Forumite
    There is a small mortgage with a couple of years to go. I think it would be cheaper to redeem it than to alter it.
  • HappyMJ
    HappyMJ Posts: 21,115 Forumite
    10,000 Posts Combo Breaker
    oldtup wrote: »
    There is a small mortgage with a couple of years to go. I think it would be cheaper to redeem it than to alter it.

    You would arrange to have the mortgage paid off first then yes your daughter can sell her half of the house to you.
    :footie:
    :p Regular savers earn 6% interest (HSBC, First Direct, M&S) :p Loans cost 2.9% per year (Nationwide) = FREE money. :p
  • xylophone
    xylophone Posts: 45,752 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    See a solicitor with conveyancing expertise.
  • macman
    macman Posts: 53,129 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Why not sell her share (after converting it to TIC) to her ex)? He is going to have to pay you rent on your share, so why not a mortgage instead?
    If you already have a property, you'll be caught with the extra Stamp Duty on purchase after 1/4, and then a potential CGT liability on eventual disposal.
    Your daughter does have money, as she has equity in the house, which you say is near to being mortgage free.
    No free lunch, and no free laptop ;)
  • oldtup
    oldtup Posts: 27 Forumite
    Macman, Yes she does have money as she has the equity but it's finding the mechanism to transfer the investment from one property to another. Her ex may eventually be able to buy her/me out but not at this moment.
    I'm eager to make the sale before 1/4, as you point out, extra 3% stamp duty will be paid from then onwards.
    Xylophone, Yes, we will need a solicitor at some point but I want to get the basic negotiation out of the way first to avoid too much cost and delay.
    There is some potential complication in that I want to allow her ex to buy her/my share in portions and this needs to be written into an agreement.
  • xylophone
    xylophone Posts: 45,752 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Lend your ex SIL the money to redeem the mortgage/buy out your daughter against a charge on the property? Essentially a private mortgage?

    You would need to consult a solicitor.
  • oldtup
    oldtup Posts: 27 Forumite
    That's a possibility, although I don't think he wants to take out another loan. However it may be better than paying rent.
    I'm trying to see two possible paths here, one if we can come to an agreement and another if we can't.
    Suppose I go ahead and buy my daughters share. Do I take on the obligation she has (apparently in law) to not force a sale whilst the children are living there? I'm not too worried about that as it's my intention to not force a sale until they are 18, and even then I'd be content to leave him living there as long as I'm receiving rent.
  • HappyMJ
    HappyMJ Posts: 21,115 Forumite
    10,000 Posts Combo Breaker
    oldtup wrote: »
    That's a possibility, although I don't think he wants to take out another loan. However it may be better than paying rent.
    I'm trying to see two possible paths here, one if we can come to an agreement and another if we can't.
    Suppose I go ahead and buy my daughters share. Do I take on the obligation she has (apparently in law) to not force a sale whilst the children are living there? I'm not too worried about that as it's my intention to not force a sale until they are 18, and even then I'd be content to leave him living there as long as I'm receiving rent.

    He doesn't "have" to pay you rent so be careful if you're expecting rent as you may not get it and you can't force him to give it to you.

    If she has an obligation "in law" to not force a sale then she might it impossible to even sell her share to you.
    :footie:
    :p Regular savers earn 6% interest (HSBC, First Direct, M&S) :p Loans cost 2.9% per year (Nationwide) = FREE money. :p
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
    10,000 Posts Fifth Anniversary Name Dropper Photogenic
    macman wrote: »
    Why not sell her share (after converting it to TIC) to her ex)? He is going to have to pay you rent on your share

    Why? I dont see thats the case at all.
This discussion has been closed.
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