Tenants in common with Mum, so many questions

[PrinnyPree]

Well this might be a little bit backwards from usual parent child tennants in common.

I want to help my Mum afford to buy the house she wants so she can live near me when my baby is born. (She currently lives 100 miles away) It was her idea to move closer as her other grandchildren are growing up and my other sibling who lives close is moving a bit further away.

However the area I live is slightly more expensive, and to get a comparable house to the one she will be selling I was wondering if I could buy a stake in it. She l's 75 and morgage free, I have a small mortgage left due to big overpayments whilst both working and child free but will be getting some inheritance soon so instead of completely paying off the last of my mortgage was wondering if I could put 10% (£35k) towards my Mums house so there's a 10-90 split tennants in common (her 90% coming from the sale of her house). My Mum will live there as her main residence I won't be charging rent on the 10% or anything awful like that, just a win win (I hope) of Mum being able to afford the house she likes and I have a 10% stake as an investment in many decades time if my Mum passes, or if before, she decides to sell and downsize and give me the 10% back. I have 2 siblings if that's relevant. Although I don't think they will be negatively effected inheritance wise with this arrangement?

My main question is because I already own a house with my husband will I be subject to any sort of tax or payments as this will be considered a second home on our part? Is this complicated to arrange and legal? Any advice would be hugely appreciated. :)

TIA for reading.

Capital Gains Tax on any appreciation in value of your % of the second home, I think. Only on the increase, so you wouldn’t lose money - but in investment terms, it might make it a less good investment than other things - for example if you’re losing out on HRT relief for pension contributions. I get that it’s not financially motivated though.

I would be completely open with siblings. Not just about what you’re doing, but on how it is separate from any willed inheritance.

I’d want to look into what happens if she needs residential care. I think your part ownership would stop it being sold during her lifetime and a charge being put on the property instead - but given her age I’d want advice on how that would all work.

Be clear about maintenance too - you should be paying 10% of that.

@Ellisandra thankyou for your reply, after looking into it I think my involvement would mean we'd have to pay the higher rate stamp duty on the entire cost of the property too which would add another 10k+ so probably unfeasible after all. X

Could you loan your DM the money and have a legal agreement between you rather than going in the deeds?

It is possible for your mum to get a retirement mortgage, similar to equity release but she would pay the interest monthly so that the capital amount outstanding would never change. This might be a better option for her?