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 ask if inheritance tax is an issue for your parents estate please?
My apologies for the delay in reverting to you.
There are some tax considerations to consider, namely that notwithstanding what follows, any amount you acquire as an interest in the property will not benefit from your parents principal private residence capital gains tax relief on any future gains in the property.
Providing there is no inheritance tax involved, then this should be the only significant tax issue that you would need to consider. This can be potentially mitigated using a life interest trust as follows:
From your point of view you would want to ensure that any investment you make is protected and is not later claimed to be a gift by you to your parents. Accordingly you will wish to draw up a declaration of trust that sets out that a particular percentage share in the property belongs to you despite the legal title being owned by your parents.
From you parents point of view once you acquire an interest in the property you could legally demand that they pay back your investment or you could force a sale of the property. I do not suggest you would do so but you should consider what may happen if anything were to happen to you. Beneficiaries of your estate could potentially take this action.
For this reason you may wish to consider putting in place a life interest trust for your parents (referred to above). This would protect your parents in that they could not be forced out of the property before their death without their consent. In addition there is a further benefit that where there is a life interest trust in place, upon their deaths, you take the property back for capital gains tax purposes at the value of the property at their death rather than your acquisition value giving you effectively a tax free gain on any increase in value.
A solicitor can prepare a life interest trust or a simple declaration of trust as you prefer.
Are you happy with the information I have provided to you above or is there anything above I can clarify for you any further?