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Original poster

Can’t sell house until stepdad passes

91 replies

Gulpalp · 08/09/2023 08:19

Mum has allowed for stepdad to live in her house when she passes
The actual property has been gifted to the 2 children but they can’t release the value of it until stepdad passes and only then they can sell
Whilst he is alive and living there can they extract value from the house via equity release or otherwise and how does that work?

OP posts:
awfullytricky · 08/09/2023 12:23

It depends entirely on how your mothers Will is written. How is the legacy to your children worded ? How old are your children ?

sparklefresh · 08/09/2023 12:25

Unlikely they can do equity release. Lenders don't tend to like trust arrangements (which is what this is). Your mother's wish was to give him a home for life, and you get your entitlement once he has died - not before.

awfullytricky · 08/09/2023 12:25

Apologies. I see your mum has 'gifted' it to your children and she is still alive . How has she done this ? Is she married to your step dad ?

Mari9999 · 08/09/2023 12:34

She has probably given him a life tenancy in the house. HR will have no rights of ownership, but he will have the right to live in the home until he passes.

Ohthatsabitshit · 08/09/2023 12:37

No I don’t think you can have it while he’s alive it’s for him. You won’t own it till both of them have died.

Bromptotoo · 08/09/2023 12:38

A freehold house subject to a life tenancy will have a market value but, depending on the age/life expectancy of the life tenant it may not be very much....

LegendsBeyond · 08/09/2023 12:40

You just have to wait until he dies. Very kind of her to let him live in it. No one has a right to an inheritance you know?

Proudgypsy · 08/09/2023 12:40

So just the be clear- your mum wanted him to live in it for the rest of his life, but him being alive is so inconvenient to you that you're wondering how you can go against her wishes and cash in early?

AuntieMarys · 08/09/2023 12:41

I've done this with my house. Dh can stay they if I die, then it goes to dcs

Bananas1350 · 08/09/2023 12:42

My husband had this. The lady living in it tried to take money out the house a few times. And we said yes as long as we could. So she never went any further. We had to wait until she does before we could have our money.

ForbiddenColour · 08/09/2023 12:43

I don’t believe that you can extract value. I’d have a few questions re this - who will be responsible for maintenance whilst the step - dad is living?

its unsure from the OP who the ‘children ‘ are , you or grandchildren? Do the children already own property ? If not then this will be a problem If they want to buy their own property as they will need to pay the supplementary rate of stamp duty.

Parrotcup · 08/09/2023 12:43

What is the mechanism she's used to "gift" it to her (?) children whilst giving him lifetime rights to live there?

Parrotcup · 08/09/2023 12:44

Is mum still alive or by gift do you mean left?

PragmaticWench · 08/09/2023 12:47

Maintenance of the property and who pays for that during the stepfather's lifetime occupancy would be really important to determine from the start.

PragmaticWench · 08/09/2023 12:47

Plus paying for buildings insurance.

flingoringo · 08/09/2023 12:48

It's not clear if your mum is still alive and has transferred ownership to her children, or if she has passed away and now your stepdad has the right to live there till he dies, then it gets passed to the children.
If the former, then the house would belong to the children so I'm not sure how that would then give any rights to the step dad?

Itick8outof10boxes · 08/09/2023 12:54

Not enough info really.

ShyMaryEllen · 08/09/2023 12:57

Was this done to avoid possible care home fees? I've heard of people passing on their homes in trust to the next generation, but each parent leaving the other a lifetime right to live there after one of them dies.

It relies so much on trust. Yes, the children will get more money if care fees are avoided - which can seem attractive when the thought of going into care is long way off - but if care is needed, the children have the option to refuse to pay anything and put their aged parent(s) into local authority care, which is often 'no frills', or to exercise other financial control. It's a big risk, particularly if the children see the parent's house as representing 'their money'.

There is also the question of the inconvenient surviving spouse. If a parent and step-parent have just got together it can seem as though the SP is cashing in, but often they have contributed to the mortgage, paid for works to the house, or paid for other things for the couple if the house was paid off when they moved in.

chatenoire · 08/09/2023 12:57

Were they married?

CredibilityProblem · 08/09/2023 13:02

Proudgypsy · 08/09/2023 12:40

So just the be clear- your mum wanted him to live in it for the rest of his life, but him being alive is so inconvenient to you that you're wondering how you can go against her wishes and cash in early?

They're not trying to go against mum's wishes at all. Mum wanted stepdad to be able to stay in the house until he died (or went into a care home).

The children aren't trying to counteract that at all - they're just wondering whether they can access some of the financial value of the house in the meantime. The stepfather's rights wouldn't be affected in any way.

Yorkshireteaformethanks · 08/09/2023 13:03

My best friends mum died two years ago but she won't get her inheritance until her mothers partner dies as she wrote in her will that he could live there until he dies. He's 80 but could easily live another 10 years + that's just how it is.

All direct debits for bills and maintenance have been changed to his bank recently (he can afford it as he hasn't spent a penny while living there for 20 years)

SleeplessinSeattle53 · 08/09/2023 13:09

The entitlement here is staggering - poor stepdad.

unsync · 08/09/2023 13:10

Has she taken advice on inheritance tax? There can be IHT issues with this type of arrangement.

Parrotcup · 08/09/2023 13:11

SleeplessinSeattle53 · 08/09/2023 13:09

The entitlement here is staggering - poor stepdad.

Why? They're only talking about some sort of equity release, it would make no difference at all to him.

Judashascomeintosomemoney · 08/09/2023 13:14

Gulpalp · 08/09/2023 08:19

Mum has allowed for stepdad to live in her house when she passes
The actual property has been gifted to the 2 children but they can’t release the value of it until stepdad passes and only then they can sell
Whilst he is alive and living there can they extract value from the house via equity release or otherwise and how does that work?

What mechanism for allowing him to stay has been included in the Will?
If he is a Tenant under the mechanism then the answer is highly likely to be No, because as a tenant he will have rights.
Also, if the children own the property, but he will be living there, does that mean the children will Not be living there? Because that would likely be a condition of the equity release - that the owner lived in the property concerned for at least six months of the year.