Converting to Tenancy in Common

Tom2023

My name is the only name on the deeds of my house but I would like to gift my children a share of the property and for them to be Tenants in Common.

Most of the advice I can find involves going from Joint Tenancy to Tenancy in Common

Bearing in mind I have a mortgage on the property can anyone offer any advice how I should go about this?

unforeseen

First of all you would need your mortgage lenders permission and I doubt very much whether they would say yes without your children being included on the mortgage.

Tom2023

Good thinking. I am about to get a new mortgage deal. It shouldn't be too much of a problem to get their names included.

getmore4less

In many cases this is not a good idea as people think it acheaves things it does not.

Why do this?

Do/will they live there?

This will cause issues if/when they want to get another place of there own or with others.

Tom2023

Why do this? To stop the house being sold to pay for a care home should I go gaga. The LA can't really sell a third of a house can they.

Will they live there? Yes.

martinthebandit

So how are you going to pay for any care needs you may have?

The simple solution for your children if they want to inherit your house is for them to provide you any care you may need.

Mojisola

Tom2023 wrote: »

Why do this? To stop the house being sold to pay for a care home should I go gaga. The LA can't really sell a third of a house can they.

Will they live there? Yes.

Will they live there until you die or go into care?

POPPYOSCAR

Tom2023 wrote: »

Why do this? To stop the house being sold to pay for a care home should I go gaga. The LA can't really sell a third of a house can they.

Will they live there? Yes.

I understand your sentiment.


However, will your children be buying a house of their own in the future?


If so, then it will make it difficult for them to get a mortgage and they may be liable for Capital gains tax if they own two houses at the same time and then sell one.

Cheeky_Monkey

Not to mention the extra 3% stamp duty they would have to pay.

I think you might find that Councils have cottoned on to this particular little scam so you may just end up regretting it.

AnotherJoe

Not to mention, according to recent posts here, as adults unless they have problems, they won't be classed as dependants and so the house could be forceably sold anyway, so the answer to your question "they can't really sell a third of a house can they?" is "no, they'd just sell all of it"

If you are trying to evade care fees (and go into the shabbiest home available without choice) then you need to do it professionally by asking a solicitor to create watertight agreements and trusts, , not by asking a few half-baked questions here.

In any case as said the repercussions upon the children could be worse than the solution - difficult to get a mortgage, smaller mortage than they might need, extra SDLT, maybe ructions between them when some want the house sold to pay for better care and others don't and you are too gaga to voice an opinion.

SmlSave

Think of worse case scenarios, for example: one child goes bankrupt - the house equity is then threatened. Child marries and divorces - the house equity is then threatened

There are so many things that can go wrong!

Plus there is no time limit to how far back the state can look back into your finances to claim care fees (I believe)