Building Annex questions

dottiec

Further to previous posts, 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 my 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 for the annex, 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.

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theartfullodger

Problem with son being joint owner would be him paying higher rate of stamp duty on applicable transactions.  Could be expensive.

dottiec

Thank you.  I understand the problem with the higher rate stamp duty and we are trying to disentangle ourselves but as low earners aren't in a position to change mortgage lenders as a new lender would not take my youngest son on individually.     They currently have a buy to let mortgage which they own 50% each.

I am interested in knowing whether there is some sort of legal agreement we could enter into which would allow me to reduce my share of ownership in lieu of the money being injected into our property by my two sons ie annex build and lump sums.  I am keeping a record of these transactions but they will be ongoing for some time so I'm not sure how this would work.

I am also interested in knowing whether when I reduce my share it could also be on condition that I (and my eldest son) are allowed to remain in the property for the remainder of our lives, even if it means my paying a rent in the annex.

As stated above, the intention is for my two sons to eventually share the property when I'm no longer around, one in the annex and the other in the house.  At this point, my oldest son will be able to buy out my youngest son if this is what they wish to do.