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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 would this be a shared ownership property bought through a housing association please?
Thanks. So who would actually be living at the property please?
Thanks. Why is it proposed that the property would be in sons name?
I am thinking it is because he has the capital
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.
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.
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.
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
Most interesting and very helpful. Thank you