Dividing prpperty on joint title

Quick question for the legal team out there.
I'm looking at buying 20 acres with 1 house on it with my mum.
With our money and hers the property will be split 58% hers paid in cash and 42% ours with a bank loan.

With both putting in money to build second house.

I brought up with what happens with her share if she dies and she said it get divided 3 ways with 3 siblings so roughly 20% each

So my total % will be into 62%.
My question is. If the other 2 want to sell there 40% do I have to buy them out or if I cant do I have to sell my 62%

What are.your thoughts on this?

Thanks ricki

 

Can it be subdivided?

How will you own it? if tenants in common you can own 42% and hers 58%. If she dies first she can leave 1/3 of 58% to each of you. If they want to sell you could buy them out but CGT needs to considered - by them, and stamp duty - by you. A well drafted will might be able to avoid both.

How will you fund it? What will be the security for your loan?
The general rule is that any loan secured by the property comes out of that property. So if your loan is joint and secured by the property it will only be the equity that passes.

Why not get some legal advice on your mum owning the lot and you renting from her?

 

Hi Terry.
At this point in time the land can't be sub divided.

Mum can't afford the whole lot of 1.6mil.
There is no way the other 2 will be able to buy my 600k % off me.

And there's no way we could pay the balance there 2 out of $300k each.
That's at purchase price.

If in 5 to 20 years time the value goes up and cost more won't happen then either lol

So would only option is to sell whole lot?

 

Have you spoken to a surveyor about whether it can be subdivided? Or even if it needs to be?

Sometimes rural properties consist of multiple lots that can be seperated and seperately transferred to different owners without the need to go through council or the subdivision process. Has this been investigated?

Can you subdivide off a house lot?

Dont rely on council advice for this, speak to outside consultants.

 

No, there would be many options. One might be you pay rent to your siblings

 

Haven't spoken to anyone else yet.
Buy worth a call to check. Thanks for idea

 

Paying anyone money out wouldn't be a option as we will almost be maxed out financially with he purchase.

And neither of the other 2 work and are in Centrelink so they wouldn't have the money to maintain the property or expenses for the property

 

It would probably affect their centrelink payments if they inherited.