Tenants in common/joint ownership

staro30

Hi,
I would like to buy a house as an investment with my father. He owns no house. I own 1 house as joint tenants with my wife. I will be supplying the majority of the cash needed to buy the house outright. How do we form ownership of the investment? All in my name? Tenants in common unequal shares? I expect I will be hit with extra stamp duty?
Thanks
Staro

Guest101

You will be anyway, no way around that

Pixie5740

Where is the rest of the money coming from? Does your father have the cash or will he require a mortgage?

You say the property will be an investment, who will live in it? Tenants or your father?

staro30

Father has cash, he will not require a mortgage. Father will be living in it.

G_M

Tenants in Common 75%/25% (or whatever) Draw up a Deed.

Yes, You'll pay xtra SDLT.

Or he either gifts you or lends you the cash and you own outright and become his landlord.

staro30

Thanks. If he gifts how do I officially become his landlord? Setup a standing order for me to receive a nominal amount each month?

xylophone

If this is to be a cash purchase and the house will be your father's home, why don't you lend him the money (against a first charge on the property) so that he is the sole owner and no additional SDLT will be payable?

You will need to decide whether you will charge interest, will require monthly repayment/will only require repayment on sale etc - your solicitor will draw up the deed and will advise.

TBagpuss

Lending your father the money and securing it by way of a charge over the property would mean you don't incur SDLT. The charge can be for a % of the value of the house, or for a fixed sum, with or without interest.

You would need to discuss, and agree on, the circumstances in which you could require repayment. Get advice about this.

konark

You would effectively be your father's mortgage lender, for ,say, 75% of value of house. Make sure the charge is registered at LR in case your father needs care.

staro30

"Make sure the charge is registered at LR in case your father needs care." How do I do this? Is this in case he needs to go into care in the future thus the council won't then touch the bit I invested? Can we write our own trust deed rather than paying a solicitor to do it?

xylophone

Have you read post 7 above?

Your father has saved a deposit for a property.

Rather than approaching a bank or building society for a mortgage loan, he approaches you.

You agree to be his mortgagee.

You need a formal loan agreement and it seems to me that it would be wise to have this drawn up by a solicitor.

You agree as to how/when the loan is to be repaid, whether you will charge interest/whether any such payments will be monthly/rolled up etc.

The solicitor registers a first charge at the Land Registry
to protect your interest.

In the event that your father needed care and the house had to be sold, you would have a legal right to repayment as per your formal agreement before any money could be used for care.


In your position, I would not consider doing without a solicitor's services.