Hallo Learnered Fellows,
Kindly ąssist in the following regard... We have a residential property owned by my mother. She is still alive. The house is fully settled with no debt attached to it. Basically, this property is our inheritance, should our mother falls away. All siblings to have equal share.
We are 3 siblings born to my mother. It is our intend to have the house renovated and extended, however capital is the problem. One of the siblings proposed to buy the property from our mother with the sole intention to do the extention and renovations. The sibling would be finaced through a commercial bank via a bond. The extensions to the house would serve as rental property and would thus compensate for the monthly bond repayments to be deducted from my sibling' salary. My sibling has a lifecover as surety for the bond.
Should the current value of the bond be for e.g 300k and the bank finance our sibling 350k of which would be paid to our mother but would in essence be used for renovations and as a result of the extensions would increase the value of the property thereafter.
Life is unpredictable, how can one secure the "inheritance share" of the other siblings in the event that:
1. The sibling in whose name the new bond is registered falls away?
2. In future avoid the sibling who bought the property from the mother to chase the other two out of the house and claim ownership?
3. Property appreciate, how can the inheritance value be protected given the apprecoation of the property as time passes?
How best can all these questions be addressed? Thank you very much in advance for your advise!
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