Hello and thank you for your question. I will be very pleased to assist you. I'm a practicing lawyer in England with over 10 years experience.
May I clarify whether it is your intention to gift the deposit you refer to or loan the deposit please? Is it your intention to live in the property that is to be purchased jointly with your step son?
Yes, I will live in the property, my stepson will move down when he retires in approx 17years time. The agreement we are wanting to legalise is that I have right of tenure for life, and when either of us dies the other has full ownership of the property. He will take out a life policy to cover his half. The mortgage would be for 10years, to be paid in full after 5.
I guess the crux of the matter is, how do I protect my investment and right to live in the property until I die?
Many thanks for this. Just reading through your posts...
The proposal in question is achievable however you would need to have a solicitor who specialises in "private client" matters to prepare a life interest trust to regularise the position...
You and your step son will need to have discussions regarding who pays for outgoings and maintenance on the property. in addition you would need to agree whether there are any circumstances that may end your life interest earlier than your passing - e.g. if you were to move out of the property permanently.
The arrangement would be contingent on his keeping up repayments on the mortgage you mention. If he failed to keep up repayments the property could potentially be repossessed which would effect you as much as he though you would still have a claim on a share of the property repossessed or not. In addition it may be difficult to obtain a mortgage from a typical high street lender. Most mainstream lenders don't like trusts of any kind on properties. Your step son may need to speak to a mortgage broker in order to obtain mortgage funding for these circumstances.
Subject to the above, a trust deed and be prepared to regulate the situation and provide protection for all of you. If your step son were to go into care, providing payments could still be made to any mortgage, this would not impact on your rights to stay in the property. Nor could the council claim the property if he were to have to go into care. Similarly the same would be true if you were to have to go into care providing you do not know of any circumstances at the time you set up the arrangement that give you cause to believe care is a likely scenario for you.
Is there anything above I can clarify for you any further?
So any legal agreement we enter into is binding, based on the above facts. Do we HAVE to set up a trust before the purchase of the property or could this be done at a later date? The remaining issues above have all been taken into consideration. Thanks for the clarity of your language usage!
Any trust deed that you both sign would be a legally binding trust provided it is executed properly - which would obviously be the case if a solicitor deals with the same. A trust can be set up before or after the event but obviously consider that if setting up after the event, your step son could potentially refuse to cooperate.
I am glad the above was of assistance. If I can assist any further as the situation develops please do no hesitate to let me know.
Is there anything else I can help you with?
No, I think that covers all the issues raised by the various other family members. Thank you!
A pleasure. If you have no further questions for now I should be very grateful if you would kindly take a moment to rate my service to you today. Your feedback is important to me. If there is anything else I can help with though please reply back to me though.