We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide

Buying a mortgage free house with a sybling

i currently own what was the family home. I am single and mortgage free. I increasingly need family support in caring for our 95 year old mother who lives with me. I want to move to Devon where my sister lives with her husband in rented accommodation and I plan to buy a bigger home there (approx £500k) for us all to live in. We would still be mortgage free. I would like the house to be in mine and my sister’s joint names. 
Is this possible? What are the tax implications? What happens if one of us dies, how would it affect the other financially? 
Help please.

Comments

  • Retired_Mortgage_Adviser
    Retired_Mortgage_Adviser Posts: 590 Forumite
    500 Posts Name Dropper
    edited 26 February 2020 at 11:03AM
    1. Yes it is possible for the house to be in your and your sister's names. Tenants in common, 50-50 (or another split, 60:40, 75:25, etc) or Joint tenants.
    2. Assuming that you or your sister will not own any other properties once you buy the place in Devon, the stamp duty due will be approx £15,000 for the house.
    3. What happens if either of you dies -
    - If you own the house as Tenants In Common and one of the 2 owners dies, that person's share goes into their estate and is distributed as per their will, or if they have no will, in accordance with the intestacy rules. Each owner can leave their share of the property to whoever they choose.
    - If you own the house as Joint Tenants, and one co-owner dies, their interest in the property automatically passes to the surviving co-owner, whether or not they have a will.
    4. IHT - will depend on what others assets you might have.
    I hope that helps.
  • lees80
    lees80 Posts: 160 Forumite
    100 Posts First Anniversary
    Something else to consider in all of this - how and when did you become the owner of the former family home?
  • notrouble
    notrouble Posts: 203 Forumite
    Seventh Anniversary 100 Posts Name Dropper
    edited 26 February 2020 at 1:58PM
    See
    Theonly tax implications are
    * SDLT on purchase
    * Inheritance Tax on death of either joint owner which depends on their overall assets (half the value of the property plus their helicopter, yacht, investments, etc....)

  • davidmcn
    davidmcn Posts: 23,596 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Alfie1503 said:
    I would like the house to be in mine and my sister’s joint names.
    What would your brother-in-law like?
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 354.5K Banking & Borrowing
  • 254.4K Reduce Debt & Boost Income
  • 455.5K Spending & Discounts
  • 247.4K Work, Benefits & Business
  • 604.2K Mortgages, Homes & Bills
  • 178.5K Life & Family
  • 261.8K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.