Other relative helping buy a house for my Mum, issue..

Nickilin66

I never post here so please be kind, I would love to know if anyone can help?

I wonder if anyone knows anything about the following? I just had a horrible phone call from what I will call my sister and this is an awful thing to have to describe but here goes..
My mum wants to move out from her boyfriend’s house, she has half the money for a £110k repossession property, my sister will provide the rest on the following condition, that I deny any right to any inheritance and the house becomes hers.

My sister’s theory is, the 55k is providing 3.5% APR interest at present in investments (do not know where!!), they will lose this if they participate, (My argument is that the property is an investment) .


Her other argument is that my Mum will be living rent free for maybe 20 years, (half the rent on the house – possibly circa £300 pcm)

Am I wrong in thinking this is unfair, and I am ashamed she has even put it forward? My theory would be at the end of the period of tenancy when my my mum departs, the totalled up rent and the fact they put half in, is taken into consideration, and then what is left is divided between the two of us.

What do you all think, anyone got any any experience of this sort of thing?

MrJB

The only way that the totalled up rent would be taken into consideration would be that it was specified in a contract before hand. I do not feel your sisters request is THAT unreasonable. I mean 20 years rent free is significant money. You could buy a commercial rental investment that would pay for itself in significantly less than 20 years.

Assume you're not in a position to go halves with your sister?

dc197

Is she your sister? If she is only "what I will call my sister", does she currently have any entitlement to your mother's estate?

McTaggus

Sorry, I'm a little unclear - are your mum and your sister planning on buying a house together for your mum to live in? If so, where does any rent come into it?

pmlindyloo

Surely this is something that your mum and sister have to sort out.

if the house is being bought as joint tenants between your mum and your sister then the house will automatically become hers on your mum's death.

If it is bought as tenants in common then your mum has the right to leave her percentage of the property to whoever she likes. Then if you were the beneficiary you would both would either have to sell the property, your sister buy you out, or you buy your sister out.

There are other scenarios.

However, it is not up to either your sister or you to decide what you mother does with her money. It is entirely her decision.

marksoton

This has mess written all over it for all concerned...

onlyroz

Has your sister considered what would happen should your mother need to go into a nursing home? Or if she were to remarry?

Mossfarr

Have you spoken to your Mother to see how she feels about this? She may not agree to what is effectively cutting you out of any inheritence. There are a lot of things for your Mum to to consider - who pays maintenance, would your sister pay Half the costs of replacing the boiler or replacing double glazing for example, after all she will be the one to benefit in the long run!
Also its quite insulting for your 'sister' to consider this arrangement as 'rent free living' - it isn't.
Your Mother needs to sort her own problems out - or tell her other daughter she is entitled to do what she wants with her half of the proceeds.

gingercordial

onlyroz wrote: »

Has your sister considered what would happen should your mother need to go into a nursing home? Or if she were to remarry?

The mother also needs to consider what happens if the sister gets divorced and her half of the house needs to be considered in the settlement.

If the sister already owns a house the extra 3% SDLT will be payable on buying this one with the mother.

However, OP, what your mother does with her inheritance is entirely down to her and if she wants to leave it all to your sister she can. Equally she could leave it all to the cats' home. Or she might spend it all before she dies on living costs, round-the-world cruises, her new toy boy, care home fees or whatever she pleases. Best to approach inheritance as a nice bonus if it happens rather than an entitlement, then you won't be disappointed.

Nickilin66

She is my sister, I am just a little angry with her right now!


I am not in a position to help out I'm afraid, I have no savings as recently bought my own house which wiped them out


The house is being bought in both names, for my mum to live in alone


My mum would pay for anything in the house with regards to boiler/double glazing etc.


My mum is not in agreement with what my sister wants.


Sorry I wasn't clear, we haven't even discussed the nursing home or remarrying yet!

pmlindyloo

Nickilin66 wrote: »

She is my sister, I am just a little angry with her right now!


I am not in a position to help out I'm afraid, I have no savings as recently bought my own house which wiped them out


The house is being bought in both names, for my mum to live in alone


My mum would pay for anything in the house with regards to boiler/double glazing etc.


My mum is not in agreement with what my sister wants.


Sorry I wasn't clear, we haven't even discussed the nursing home or remarrying yet!

It may be bought in both names but the main thing is whether it is in joint names or tenants in common. There is quite a difference.

Read this:

http://findlaw.co.uk/law/property/buying_property/differences-between-joint-tenancy-and-tenancy-in-common.html

Your mum needs legal advice before she agrees to anything.

She may wish to consider other options such as shared ownership for example.