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Lifetime Interest in Property

15 replies

CiderGlider · 04/02/2023 19:27

My father recently passed away and the house has been left to me but his wife (my mum died 26 years ago) has the right to live there until she dies.

Technically it’s straight forward and we have a civil relationship but essentially she’s a manipulative narcissist and I don’t trust her one bit.

What do I need to consider while we wait for probate to to be granted and house transferred.

She’s said she can’t afford to run the houses ie cover bills and another time that it’s too big for her. She legally has to keep it in a good state of repair but I intend to take out building insurance to cover any structural issues that may crop up as I can’t trust her to take out house insurance when the current policy ends.

Anyone been in similar situation and have pearls of wisdom? What do I need to consider?

Thanks I’m advance.

OP posts:
purpledalmation · 04/02/2023 19:30

Who is the executor?

CiderGlider · 04/02/2023 20:01

Me and his wife….

OP posts:
purpledalmation · 04/02/2023 20:36

Engage a probate solicitor. The fees will come out of the estate and they can draw up a trust agreement to coincide with the wishes of the will. It's very straightforward and they will alter the land registry to reflect the trust status. This is important as it protects against any attempt to sell without your knowledge.

Once set up it is a very secure option. You can have written into the trust that she can downsize if she wishes, but the money not required goes to you, and there are several other conditions the solicitor goes through with you. The trust also would have a condition anyone living with her sign a declaration they have no interest in the house, so even if she marries it won't overturn the will or the trust. It should be very watertight.

If she refuses to get insurance it would be simpler and safer for you to do this. Any repairs would have to be worked out between you but you may end up paying as the house is ultimately yours.

JustDrama · 04/02/2023 20:40

We had this and she was allowed to sell the property and buy a smaller one.

Blueash · 04/02/2023 20:44

The other poster is mistaken, The Land Registration Act 2002 expressly provides that interests under trusts cannot be noted on the register.

If she has expressed that she cannot afford to live there give some thought to what will happen if she decides to move out and let it.

JustDrama · 04/02/2023 21:26

Blueash · 04/02/2023 20:44

The other poster is mistaken, The Land Registration Act 2002 expressly provides that interests under trusts cannot be noted on the register.

If she has expressed that she cannot afford to live there give some thought to what will happen if she decides to move out and let it.

The house I speak of has the name of the person holding the trust on the deeds. I check the land registry regularly to make sure my step mother hasn't fucked about.

Princessglittery · 05/02/2023 00:25

Sign up for a property alert propertyalert.landregistry.gov.uk

If you can add your email address as one of the three addresses permitted on the register www.gov.uk/registering-land-or-property-with-land-registry/update-or-correct-the-register

purpledalmation · 05/02/2023 12:22

Blueash · 04/02/2023 20:44

The other poster is mistaken, The Land Registration Act 2002 expressly provides that interests under trusts cannot be noted on the register.

If she has expressed that she cannot afford to live there give some thought to what will happen if she decides to move out and let it.

I disagree. A declaration of trust can be noted on the land registry according to this.

A declaration of trust confirms the true ownership of a property in the proportions contributed by each party regardless of the title entries at the Land Registry. It can allow an owner not protected by being a registered owner of a property at the Land Registry to actually be an owner and be protected as such. The declaration of trust can be noted at the Land Registry, alerting future purchasers that the registered owner is not alone in owning the property.

purpledalmation · 05/02/2023 12:22

We are in the process of buying a house in trust as a substitute property.

MumOf2workOptions · 05/02/2023 13:48

A lady I worked with had this but her Dad died young then her Mum had a partner
The house was big with big bills and it needed work doing to it and he was in ill health
They mutually agreed it wasn't suitable and her mums partner went into sheltered accommodation sheltered housing as he physically couldn't afford to be there - she didn't have to make any financial contribution to him but she did furnish and decorate for him and does some food shopping for him

FluffyFluffyClouds · 05/02/2023 16:11

Definitely see a solicitor yourself and get them to talk you through the relevant bits of the will, what they mean, and what you can do in various eventualities.

My Mum left a similar will and the details were important. They are, I think, designed to keep things simple and prevent issues down the line.
Her partner has a right of residence in the house but NOT the right to sell it and buy something else with the money. So that's one thing we don't have to worry about.

The right ends if he marries or cohabits. So I don't have to face the situation where he's gone to his great reward but a frail and possibly somewhat demented old lady has been living there for years!

He is responsible for keeping it in good order and insuring it. LUCKILY we get on well and he's easy to arrange things with. I actually offered to pay half of the insurance and I'm also named on it (so I know the insurance is in place and if, heaven forfend, he burns the house down with him in it, at least dealing with the insurance will be covered).

There's no guarantee the details in this will won't differ so solicitor.

You need to ask the solicitor what the procedure is if the lady doesn't meet her responsibilities. I didn't ask for details of that as I thought I would ask later if I needed to, but didn't think it likely.

Ask all the what-ifs. Can she have a lodger? What if someone has their own place but has ended up staying there long-term and is either causing issues or (if the lady has died) is refusing to go home?

We found a lot of insurance brokers weren't interested in insuring a house which is in trust - we weren't sure how to phrase it. Might be worth asking solicitor about that too. Fwiw ukinsurance dot net sorted it for us. A bit more but we didn't want to take risks obviously.

The advice might cost hundreds of pounds or even low four figures but probably worth it . A STEP solicitor is what you want.

Oh and yes crucially the solicitor will sort out the land registry changes for you.

The good news is that normally if someone dies and their house is sold much later, CGT is due on the increase in value BUT if it's someone's main residence that's not the case. So say Bert dies and leaves his house to Bert Jnr but 2nd wife Mary is willed the right to live there until SHE dies. Mary lives another 10 years and the house goes up quite a lot in that period - but Bert Jnr only has to worry about increase in value since Mary died.

BentleyRhythmAce · 05/02/2023 16:15

It is possible to capitalise her life interest. Essentially an actuary calculates a lump sum based on her age and life expectancy and the value of the house. She gets the cash and you get the rest of the value of the house. It's a clean break. You'd need to both agree it but it could work.

caringcarer · 05/02/2023 16:31

With a lifetime interest his wife could choose to.live in there herself or to rent it out and use the rental income to rent in somewhere smaller for herself. She is should not be in abl we to sell it because it belongs to you.

Fenella123 · 05/02/2023 16:52

caringcarer · 05/02/2023 16:31

With a lifetime interest his wife could choose to.live in there herself or to rent it out and use the rental income to rent in somewhere smaller for herself. She is should not be in abl we to sell it because it belongs to you.

Hence important to check the wording of the will with a solicitor - is it a lifetime interest or a right to residence?

CiderGlider · 05/02/2023 21:15

Thank you all for the replies-some good tips there and things to watch out for. The Will does stipulate she’s not allowed to co-habit and if she chooses to leave, or leave because she’s breached the terms, then the house becomes mine.

I’ll be seeking legal advice to ensure it’s all water tight.

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