How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Joshua Your Own Question
Joshua
Joshua, Lawyer
Category: Property Law
Satisfied Customers: 25424
Experience:  LL.B (Hons), Higher Prof. Dip. Law & Practice
35043042
Type Your Property Law Question Here...
Joshua is online now

If a son wants to buy a 50% share leasehold property for his

Resolved Question:

If a son wants to buy a 50% share leasehold property for his parents, can he hold the leasehold title without being 'A Leaseholder', who would in fact be his parents.
Submitted: 3 years ago.
Category: Property Law
Expert:  Joshua replied 3 years ago.

Joshua :

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.

Joshua :

May I clarify would this be a shared ownership property bought through a housing association please?

Customer:

Yes

Joshua :

Thanks. So who would actually be living at the property please?

Customer:

His Parents

Joshua :

Thanks. Why is it proposed that the property would be in sons name?

Customer:

I am thinking it is because he has the capital

Joshua :

Thanks. There will be some significant difficulties in this respect unfortunately. There is no strict legal reason why this could not be. The problem that will be encountered will be one of housing association policy and social housing regulations. These require that the legal owner (the leaseholder) must also be the person that lives in the property. The HAs are very strict on this and do not allow shared ownership properties to be bought as investments as a matter of social housing policy. Accordingly you will find that they will refuse to grant a lease where the owner does not also live in the property.

Joshua :

However if son wants to provide capital for his parents to buy such a property in principle he could maintain an interest by way of a bare trust.

Joshua :

This is where he gifts the capital to his parents for the purchase of the property but his parents sign a deed of bare trust in relation to their interest in the property to son.

Joshua :

This would enable son to have a financial interest in the property without being on the lease which would comply with the the HAs regulations. Any such trust arrangement would need to be arranged through other solicitors to those dealing with the purchase as the HA would not approve such an arrangement

Customer:

Most interesting and very helpful. Thank you

Joshua and other Property Law Specialists are ready to help you

Related Property Law Questions