The first thing you need to consider is what happens with you and your wife split up or either of you don’t get on with your mother or for whatever reason it doesn’t work out or your mother goes into care?
Just because the new house may be in you and your wife’s name doesn’t necessarily mean that it’s going to escape the local authority clutches to pay for care fees if your mother doesn’t have enough liquid cash to pay that.
You are doing this therefore for that reason, it’s not guaranteed to work.
Provided any replacement property is purchased within three years, the stamp duty can be reclaimed.
Your mother could have a charge on the house to ring fence her share although any first mortgage lender would need to consent to that and you would have to confirm that it wasn’t repayable until the property was sold. Lenders don’t like additional borrowing. The lender would have to consent to your mother’s charge.
If they will not, then it’s easy enough to have a deed of trust whereby you hold a percentage of the property on trust for your mother and then that is registered as a restriction against the property.
The difficulty here is that your mother doesn’t like living with you and she decides she wants to move out, you are going to have to sell the house so that really does need some careful consideration.
I know it might be all positive at the moment, but I have had this kind of question on dozens of occasions where people are trying to extricate themselves from an arrangement which they thought was going to last forever because whilst they got on swimmingly before they lived together, they were drowning when in the same house.
Can I clarify anything else for you?
I’m happy to answer any specific points arising from this.
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