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Sister being added to title....what % of ownership?

Discussion in 'Property Finance' started by mike8t1, 24th Mar, 2016.

  1. mike8t1

    mike8t1 Member

    Joined:
    17th Aug, 2015
    Posts:
    23
    Location:
    Sydney
    Hello friends,
    My sister has taken 50% ownership of my fathers deceased estate. She is a single mum with no income aside from government benefits. In order to borrow against the property to pay out the other 50% owner, she wanted to add another sister to the title and use her income in servicing. What is the ideal ratio to minimise stamp duty for sister 2?
    99% vs 1%?
    Will lenders be ok with this?
    Are any lenders taking single parent pension payments in servicing?

    Thanks team
    Michael
     
  2. tobe

    tobe Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    897
    Location:
    Melbourne
    yes, there are lenders who take parenting payments into servicing, along with Family tax benefits and child support as well.

    regarding ownership, many lenders don't like the idea of 'borrower of convenience', where another party is brought in as co owner just for the purpose of borrowing. Its messy, and has stamp duty and other tax and risk implications.

    Id investigate whether she can afford the loan on her own with a broker. She could also investigate whether the party being bought out would be open to an arrangement whereby only 25% is paid now, and the remaining 25% is paid in the future, so they can share in some of the capital growth.
     
  3. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

    Joined:
    18th Jun, 2015
    Posts:
    9,043
    Location:
    Sydney
    Have they sought legal advice? If could be possible to do without duty in some states (not SA though).

    Do as Tobe suggests and she should try to do it on her own. If not then seek legal advice and loan advice on transferring 10%