Joint owners/tenants in common

dottiec

My two sons and myself have joint ownership of the property in which my eldest son and I live.  I would like to ensure my eldest son and myself have a legal right to remain in the property until we die and I would be happy to reduce my share of ownership if this would help achieve this for my eldest son's.

1   A previous post states that where there are more than two joint owners, it is possible to have combined beneficiary joint ownership and tenants in common eg 3 joint owners could become 2 plus 1 tenant in common.   Would it be possible for me to sever my joint ownership and become a beneficial tenant in common (I don't really understand this) and then reduce my one third share (presumably via my will) to favour my eldest son. 

If this is possible and would therefore result in my eldest son owning more than one half of the property on my death, would this automatically mean he would have the right to stay in the property.  Also in this scenario my eldest son would own a larger share than his brother - is this possible if they are joint owners of two thirds of the property at the time of my death.  Would this situation force them into becoming tenants in common.

2   Do we need to consider Life Trusts or something similar.  I am trying to gather as much information as I can before going to a solicitor to enable me to be prepared.

3   Another option would be to change ownership to tenants in common and then I can dispose of my one third share how I would like in my Will. 

My sons do share ownership of other properties so in the end one will not receive more than the other - my concern is for my eldest son to be able to remain in our current home. 

If anyone can offer any advice or suggestions, that would be very much appreciated.  There is no IHT involved.

doodling

Hi,

Well that now makes more sense than the previous thread with your post in it but the answer is the same.  Any joint owner, no matter whether the house is held as joint tenants or tenants in common can force a sale.

There is no way to prevent this.  If you don't want someone to be able to force a sale then you don't want them to own even 1% of the property.  The solution to your problem is to buy out the other son (or somehow convince him to give away his share).

The house could, for example be sold from you plus two sons to you plus one son, assuming the now excluded son was happy with the deal - that would prevent that son from forcing a sale but wouldn't prevent you or your other son from doing so at a later date if you/they chose.

A life trust only works when the interests of both it and all the other owners coincide - your concern in this case is that they might not so it won't be of help to you.

The best you can do without changing owners is to make sure that your eldest son receives your interest in the house when you die - I would hold it as tenants in common (you may already do so) and create a will leaving your third to your eldest son.  This won't stop your other son forcing a sale but hopefully your eldest would be able to find the money to buy out the other son if that situation arose.

I would talk to a solicitor to arrange your will and get them to advise on the house ownership at the same time.

dottiec

Thank you so much for your advice.  I can see that the best way forward is to change to tenants in common and have my Will drawn up stating my wishes.  We are joint tenants at the moment.  My youngest son won't object to this as he is equally well catered for.  I tend to worry about what could happen when I'm not around to oversee things and want to give my eldest son the best protection I can.  Thank you for your help.

Keep_pedalling

Does your younger son own his own home? If not, not only does he own an assets that provides him with zero benefit he will also have to find an extra 3% to pay the additional stamp duty on any home he wants to buy.

Whether he does or not you and him would be better off if you can buy out his share.

dottiec

Further to the above, we are contemplating building a garage with additional annex in the garden of the house where I live with my eldest son, and which is jointly owned by all three of us ie two sons and myself. 

The house is mortgaged and my eldest son has recently paid off a lump sum to enable us to get a better mortgage rate. 

My youngest son is providing a lump sum to start the building works, which will then have to be completed in stages over the next few years, when finances are available.  Sums of money will continue to be inputted by my sons into the property for the building works and mortgage lump sums as things progress - but no financial input from me. 

The annex is to initially provide me with separate accommodation should I need care in the future (ie try and keep myself out of a care home for as long as possible, should I live that long).  When I die it is intended my youngest son will live in the house and my eldest son in the annex to be near family.
 
What I am considering doing is
1   Changing the ownership to tenants in common at this point. 
2   I would like the extra amounts of money paid into the property by my sons to be recognised by way of a reduction in my ownership share of the property (rather than being a gift). 
3   I would also like to ensure that my eldest son and I are able to live in the property until each of us dies if we so wish.  
4   When I die, my eldest son will be left any remaining share of mine in the property in my Will and will be in a position to buy out my youngest son's share.


Is it actually possible to do the above?  I am still gathering as much info as possible before going to the solicitor to enable me to consider how to progress.  

Any guidance would be much appreciated.