Tenants In Common Question

[bond]

If a property is purchased outright and has two tenants in common, does it matter about what share each has, in terms of the government trying to take it away from one or the other (say for nursing home fees or anything else). Say the property is valued at £250K one owns 20% the other 80%. I'm just worried there may be an issue if it is not 50/50. I understand the situation with leaving the share in a will (which you don't if in joint ownership).

[Barmaid]

If the TIC is backed by a declaration of trust (or is stated on the TR1) as to the shares the ownership is clear. One party owns 80% and the other 20%. The shares are fixed in the divisible shares.

In terms of LA care, the max they could charge (they couldn't just take whilst the co-owner lives there) is the extent of the person's share. Nor could they force the co-owner to sell if it was his home.

If you can be a bit more specific, I'll be a bit more specific.

[bond]

Barmaid, thanks for your answer but I'm not clear. You say the max the LA could charge is the persons share, so one could receive a bill for 80% or 20% of the property for LA care? and where would one find that money from if no savings or other assets or held and the property cannot be taken away or sold due to TIC. Happy to give more info, but not sure what info you need...

[black_cat51]

you don't have to pay up immediately - the LA will pay and put a charge on the house for when it is sold (upon the 2nd death) Say the house is worth 1 million. If the 20% share person had to have care, the most the LA could ask for back (assuming no other assets) is £200k. However, if the 80% person needs care, the LA could ask for 8oo k back Via a charging order upon the 2nd death

[bond]

Thank you black_cat51, that makes sense about charging orders. So could this work if I purchased a percentage of my mothers property? she is 61 and in very good health, driving a car etc, but if the worst happened in her later years, could I prevent her house being taken away to pay for potential care by purchasing a percentage of it now ?

[buildersmate]

On the face of it you could do that, but the legal charge would still sit on the property. Then the executors of your mother's estate, when the eventuality happens, would be unable to distribute the proceeds of your mum's asset - a large share in a house, with you living in it and owning a share. Even if you were the sole beneficiary, I don't see how the executors could transfer mum's share to you. The LA would claim their stake at some future point.