Hi, thanks for your enquiry. First and foremost, it is your Mother's decision if she decides to proceed with your suggestion and your brother's wishes don't come into it. However, if you were to proceed, it would of course be fair for your brother's "inheritance" to be protected. Would you need to take out a Mortgage to fund the new purchase? Would your Mother want to be on the Deeds to he new property? Kind Regards Al
Thanks for your reply.
From a legal point of view, there is of course nothing stopping your Mother gifting you the required monies to help finance the property (although your Mortgage Lender will insist on receiving a letter signed by your Mother confirming that this payment is a gift, and is not repayable). This may upset your Brother.
Subject to the above, as you will be having a Mortgage, it won't be possible for you to grant your Brother any private Mortgage over the property (ie any private Mortgage could say that as and when the house is sold, your Brother should receive £x). This is because your Mortgage Lender won't agree to allow any third parties to have a financial interest in the house.
You would therefore have to draw up a separate Declaration of Trust between yourselves and your Brother, stipulating that as and when the property is sold, he should receive £x or stipulating a different agreement, depending on what you all can agree on.
Other than this, I am not sure how much savings your Mother has, but she can of course make a new Will, stipulating that your Brother should receive the first £70,000 on her death, but I am not sure if she has this amount of money to leave.
I hope this assists and sets out the legal position.
Family matters are always the most tricky!
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Hi, IF your Mum's name was on the Deeds, then your brother would have a claim when anything happened to her if she had not made a Will and you all were holding the property as tenants in common. There are 2 ways a property can be held- as Joint tenants which means if one party dies, the property passes automatically to the surviving owners, or as tenants in common, which means you all hold a separate share in the property, which share then forms part of each of yours Estate. However, please note I don't think it will be possible for your Mother's name to go on the Deeds because only the parties to a Mortgage can be named on the Deeds- I doubt very much that your Bank will allow your Mother to be a party to the Mortgage, but you can always ask. Whatever happens, whatever your Mother decides to do, it will be difficult for your brother to contest any monies she may have given to you during her lifetime, as anybody is free to give their money away if they so wish. I hope this helps. Kind Regards Al