Sale of mother's home

[stel]

When their mother was widowed, two sisters participated in the purchase of a property for her. Each sister contributed one third of the cost and the mother contributed one third.

Their mother will shortly go into a care home. She has little money apart from the value of the one third of the property she lives in. She has asked the sisters to purchase her third so that at least in the early period of her stay in a rest home her modest pension income plus the funds from the sale of her third will enable her to cover the care home costs.

They hold the property as joint tenants. What would be the most tax efficient way for the sisters to purchase the mother’s third and are there any obvious pitfalls?

They envisage renting the property once the mother vacates it.

[pawncob]

Well as she needs the money, it'll have to be at full market value, and if it's her PPR the sale of her share will be exempt from CGT.