Buying house for parents

martycrane

I want to buy my elderly parents' rented house for them and let them live there rent free. But I don't want them to worry that I might sell up and evict them at some stage.

Someone suggests that I give them "right of residence" for life and that what I do is sign an "easement"? and have them added to the deeds as life tenants.

Number of questions:

Is the above OK?

What is an easement?

Is this suggested arrangement a form of a trust?

If I do all that's suggested, will that ensure (for my parents' peace of mind) that I can't sell the property while they are alive or at least without their permission?

Thanks : Marty

msmicawber

I'll try and help, Marty, as I used to fill out conveyancing forms years ago. An easement is a limited right that can be granted to one person concerning another person's property. For instance, if I can only reach my house using the lane that runs through your land, you can (and hopefully would!) grant me an easement to use your lane for that purpose. I couldn't decide to erect a shed in the middle of your lane, however, as the right granted is specific. More usually, utilities companies are granted easements to maintain their pipes and cables.

What you would be doing is granting an easement for your parents to live in your property for their natural lives, and giving them rights to have 'quiet enjoyment' of the property. I'm not sure whether it counts as them holding it in trust for you.

Another way of doing it may be to buy it in their names, and then get them to leave it to the survivor in the first instance, then to you once the second one dies. It's worth looking into the tax implications of this, though.

Oh dear, I'm not sure if I've helped or hindered here. Sorry.

Bogof_Babe

If it is a Council property (which you don't specify but it is more likely to be available for sale than a private rental), you might encounter problems trying to buy it in your own name.

martycrane

Thank you Bogof_Babe - the property isn't council owned.

Thank you msmicawber for the explanation of an easement.
I was thinking that I would be creating a trust and that my parents would be the beneficiaries. I wonder is it possible to be a settlor (trust creator) and also a trustee which I would (possibly) be?

Marty

msmicawber

I'm pleased I could help a little, but your trust questions are beyond my realms of knowledge. I think it would be worth speaking to a solicitor about this - a lot of them do fixed price for conveyancing, and you could ask them to include this in the price or at least give you a fixed price for arranging the trust/easement. At the end of the day, it's their expertise you need and, if you get proper advice from a solicitor which turns out to be wrong, you have recourse via their professional indemnity insurance and The Law Society, whereas if you take non-professional advice that turns out to be wrong, you just have to live with the consequences.

Good luck, and I meant to say before that it's a particularly kind thing that you are doing in making sure that your parents feel secure in their home for life.

martycrane

Thank you very much msmicawber.