Sale of part of our home

Val22

Our daughter want to purchase our home for her, her husband and children to live in. We agree to her living there but we want to retain some outside space for parking and also the large garage. We have agreed a valuation, she can afford to pay us £X for a deposit & would need a loan for £XXXX which together would cover 70% of the valuation. The house needs some repairs and upgrading so they would like to have 70% ownership before paying for the repairs. Can someone with a bit of knowledge advise if we agree to call the £XXXX amount as a loan from ourselves to her can we then change ownership to 70% to them and 30% to us with a charge on the Deeds for £XXXX in case the loan is not repaid. We trust her completely but this would also protect her sister as any outstanding amount would be part of our Estate. We do have somewhere to live.

G_M

Off the top of my head,you could

* transfer the Title to her, but register a 2nd Charge on the property against the loan, just as the mortgage lender does

* transfer the Tite into joint names, owning as Tenants In Common. However you would almost certainly then need to become joint borrowers on the mortgage she (and you) take out.

* you could split the Title, and retain ownership of the garage and parking space whilst selling the remainder

* you could sell the entire property, and then lease ack the garage from her, at a nominal rent to reflect the loan you've given.

AnotherJoe

I suggest the first of GMs options

Val22

Thank you for your reply G_M but the problem with your ideas are
1. Transfer the title to her - we don't want to lose ownership of part but also I did not mention she does own another property so to have the whole property in her name she would have 3% stamp duty on the whole value.
2. Tenants in common may work, but not sure how the stamp duty would work but there would not be a mortgage just a loan from ourselves. Doing it that way what % would remain in our Estate for her then having to buy out her sister on our death.
3. Split the title - would leave us with a Council tax bill as they would then rate the house & garage as 2 separate properties, would possibly be the same for building & contents insurance.
4. sell the whole - this again raises the stamp duty, and at present we don't want to relinquish total ownership.
I do appreciate your response as we have gone over many ideas and finally thought our idea as mentioned seemed the best option but just wondered if it was legally feasible and also it's good to get an outsiders view as sometimes you cannot see the wood for the trees, if you get what I mean.

AnotherJoe

GM, re point 4 daughter owns another property as you acknowledge in point 1.

CIS

The property would become 2 properties for council tax purposes only if the valuation office determined that both parts became self-contained dwellings.

If they both became dwellings then each property would be banded individually and , in most cases (but not all) the residents become liable for the council tax charge.

Craig

Val22

Hi Craig. The property is in the Country and stand in just over half an acre. The house is at one end and the garage etc at the other, although not a dwelling we through there would be some sort of rates to pay if property split, are we wrong in thinking this. Also daughter will eventually own all the property so seemed an unnecessary expense to split.

beeg0d

CIS wrote: »

The property would become 2 properties for council tax purposes only if the valuation office determined that both parts became self-contained dwellings.

If they both became dwellings then each property would be banded individually and , in most cases (but not all) the residents become liable for the council tax charge.

Craig

in other words no cooking, sanatation or sleeping facilities in the second propety no council tax?

CIS

in other words no cooking, sanatation or sleeping facilities in the second propety no council tax?

It can't be a self contained dwelling without them (well, sanitation & kitchen)

Craig