I think we have ironed it out and ready to take this to the solicitor:

– Dad adds me to the title of that block of land as tenancy in common with a 25% share. This allows me to obtain a bank loan and build.
– Upon Dad’s passing, the land without the house and associated infrastructure that I added is valued. I contacted another property valuer who said this was possible.
– My father’s 75% share would be distributed to my three siblings, however I have the option to buy them out with the portion of inheritance from the other two blocks first.
– This allows security for my family and a share in property growth for my father and siblings.

The only issue I see now is in the case that I need or want to leave the block before my father’s passing. Possibly an agreement that Dad will buy the house from me, maybe minus a percentage value? Not really fair he would have to reimburse all my costs.

Thoughts?

• This reply was modified 9 years ago by  Cloudburster.

Just an update. It looks like we will proceed with the idea of tenancy in common. Good part of this is that I may only have to pay $20 stamp duty as the lot is currently used for primary production and is “intended” to be used after the title is amended.

We approached a property lawyer who seemed quite knowledgeable but haven’t gone any further than a phone conversation. As much as we would like to sit down with him and have a good yarn about the idea. At $600/hr we are wondering how much we can draw up ourselves. We haven’t made much on the sheep this year so trying to watch every penny although we understand the need for this to be done properly.

As it would appear the title amendment to be not too difficult. I guess the next step is to get a more definitive price of building a house on the site and ensure there are no other issues there and then look at the best way to get finance for that – through a bank loan or through Dad. Then take all that to the family and ensure everyone is happy before having the will reflect the changes.

Anyone see any other issues to take into consideration? Also, are there any major tax implications of suddenly acquiring 25% of land? Other than that, we are looking forward to the future although treading lightly.

Cheers

Thanks for the reply Dean.

By rights to buy the block do you mean it is placed in my name? I should of made it clear that even if it was, with some type of family loan made for the block, I would still need to obtain a small loan to build the house. I won’t be able to get a bank loan without the property in my name.