3 generation living

GrandMareS

Does anyone know where to get advice on legal and financial implications of us, our daughter with her husband and two teenage children wishing to sell our properties to purchase one larger house , or house with annexe to enable us to live together. I can't seem to find much information on this but can't believe there is not some experts out there to guide us in this matter.
Is there anyone who has gone through the process.? Help please!!!!!!!

Thanks in anticipation of replies

marksoton

It's no different to any property purchase. Maybe just a bit more complicated.

Paully232000

Will you need a mortgage on the bigger property, or will the funds from the sale of the two houses cover the new purchase?

Guest101

I can see family dramas being an issue, but there's no immediate legal implications.


For the future, selling could be an issue (if they divorce for example)

TBagpuss

Both you, and your childen would need to get separate legal advice.

You would need to (or at least would be very foolish not to!) discuss and agree in advance on things such as how the property ould be owned (i.e what proportion of it you would each be entitled to), how the cost of repairs and maintenace would be split, how and when any of you could end the agreement and whether and how you could force a sale.

Those things should all be included in a decalration of trust . Bear in mind that it could be that someone other than you hs to deal with it later on - for instace,if you or your spouse became incapcitated, you might have someone dealing with your affairs under a power of attorney - having eveything in a formal agreement ensures that your attorney's can comply with any agreement as they know it is a formal obligation, not any kind of git or informal arrangement.

You'd also need to think aboutwhat will happen when things change - for example, if you or your spouse needed to move int oa care home, or when you die (this one may of course be less complicated if your daughter is an only child than if she has siblings to whom you would intend to leave part of your estate.)

I's suggest that you speak to solicirors in a high street practice where they are more likly to be able t oprovie cross-departmental advice - you may benefit rom speaking to a private client lawyer (ideally a member of STEP) about implications for you in relation to things such as IHT, Care costs setc, as well as to a property lawyer about the practicualities of shared ownrship.

Do give some thought to what would happen if you and your spouse, or your daughter and her husband, were to divorce, as that would have an impact on all of you.

PasturesNew

Think about things that COULD happen:

You, spouse, daughter, husband, grandchildren.

One of the adults dies - and is replaced within 1-2 years by somebody nobody else likes....

What if, say, your daughter died, then her husband moved in a floozy ... and married her really quickly, then he died, with the floozy inheriting all that was "your daughter's"?

Odd things can - and do - happen.

What if the above happened right after your own OH had died and you were grieving, living with a floozy who "wanted you out"?

Think the worst.... so you can plan what should happen in awful events.

Cakeguts

Don't is all I will say. It never works out the way people expect. If daughter and husband can't afford the house they want without the money from your house then they can't have what they want. I would suggest living close to each other but not in the same house even with an annex.

System

What is the distance between your home and your daughters?

I had people who have lived in 3 generation homes - temporary 8-9 months), whilst sorting out house purchase in Spain. Some days, they got on great and other times, arguments.

Somethings were difficult as 1 kitchen - kids and parents like pizza, curry, spicy food. Grandparents only ate plain things like pork chops, shepherd's pie etc.

You are better off with living in your own properties a few streets away as you still have your own space, can do what you want and not far to join in Sunday dinner, celebrations etc.

I know of loads of people who have their children/grandchildren around the corner from them and no issues.

TBagpuss

I think this depends on the family. I've known cases where it has worked.

I think that there are things to consider - you and your daughter and son-in-law are all used to running your own homes and doing things your own way - think about how that will work. I think that having an annex may work better than sharing a house - that way, you each have your own private space, and door between which you can close when you want.
Having separate kitchens can also be very helpful