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Life Interest

1 reply

TheRosesAreInBloom · 10/08/2020 22:28

Hi, just wondering if there’s anyone around who can advise on the Life Interest process.

Long story short my dad left his half of the property to my sister and I with a life interest instruction. We understood that when my mother decided to downside, any realised equity (50%) would Be ‘ringfenced’, whatever that really means.

So now that the sale of the property is going ahead, and the purchase of the new property is some gross £48 k less.....what happens to the £24 k that is legally owned by my sister and I?

I have been given the impression that the total profit will be distributed according to the ‘shares’ but the reality is is that my mother will need it all to finance her future years. Can we reallocate the shares of the property to reflect my mother having received a larger share in cash?

Any insight from anyone in the know will be gratefully recieved, I will be speaking to our solicitor of course 👍🏻

OP posts:
Scrumptiousbears · 10/08/2020 23:35

This happened to my sister and I and as I understand it.

Joint house was say £300k. So sister and I had £150k between us. Stepmother sold the house and bought for £250k. Our £150k is sitting in her house and she gets the £50k profit.

I also understand if her house randomly sells for say £500k when the time comes we still only get £150k out of it.

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