Sale of house by Trustees

lunarjan

Thank you all for your detailed replies, it’s been really helpful.
I’m studying the Deed, which is in fact my Grandfather’s Will, but as usual with these things the wording takes a bit of understanding as there’s no punctuation! I don’t think it’s a Tontine, it’s either a Bare Trust or IIP Trust. As far as I can tell, when each life tenant died, their share passed in equal amounts to their issue, and as three of them were daughters, to their husbands (if they outlived them) until they died, and then to the issue. 

There’s no specific mention of the Property in the Deed, and it’s not clear to me what happens to the Trust on the death of the last Life Tenant, but possibly a solicitor would be able to work it out!

It’s possible that the last Life Tenant (who was also a Trustee) nominated her daughter and husband as Trustees when she was in failing health. The original Trustees are the only ones named in the Will, ie my Grandmother and a local Solicitor, both long departed.
I’ve also just noticed that a neighbouring property which is very similar, although in a better state of repair, sold in 2018 for £90,000 more, which is why I’m thinking it would be worth taking the time to get the tenants to do the repairs-(they’ve actually had it on a very long lease, it’s just that it’s coming to an end in 2022)

theoretica

Taking a charity to court to get them to do repairs on a building whose lease is ending and they are leaving would not be a challenge I would take on. 

AskAsk

i think it all boils down to the trust and how it should operate under law, and your legal right to the trust (consulting rights, voting rights) and whether the trustees have been appointed correctly and whether their decisions to sell the property has not been in the interest of the beneficiaries.
in order to fully fight your case, i am afraid you will need to consult a solicitor who has an understanding of trusts and can advise you on whether your cousin has pulled a fast one, and has acted wrongfully.  you could ask solcitors for quotes to read the trust deed and explain the implications to you.  i would expect they would charge you something like £150 to £200 to do this.

AdrianC

lunarjan said:

I’m studying the Deed, which is in fact my Grandfather’s Will, but as usual with these things the wording takes a bit of understanding as there’s no punctuation! I don’t think it’s a Tontine, it’s either a Bare Trust or IIP Trust. As far as I can tell, when each life tenant died, their share passed in equal amounts to their issue, and as three of them were daughters, to their husbands (if they outlived them) until they died, and then to the issue. 

There’s no specific mention of the Property in the Deed, and it’s not clear to me what happens to the Trust on the death of the last Life Tenant, but possibly a solicitor would be able to work it out!

It’s possible that the last Life Tenant (who was also a Trustee) nominated her daughter and husband as Trustees when she was in failing health. The original Trustees are the only ones named in the Will, ie my Grandmother and a local Solicitor, both long departed.

This really is going to be one for professional legal advice, because it's all going to depend on the precise wording.

But it sounds as if the property was just another asset of the trust, which the trustees were free to dispose of at any time they felt appropriate.

I’ve also just noticed that a neighbouring property which is very similar, although in a better state of repair, sold in 2018 for £90,000 more, which is why I’m thinking it would be worth taking the time to get the tenants to do the repairs-(they’ve actually had it on a very long lease, it’s just that it’s coming to an end in 2022)

This, you may have noticed, is not 2018.
The market - especially for mixed retail and residential - is very different indeed.
A new lease being negotiated now is going to be very different from one negotiated however long ago. And 2022 is anybody's guess...

Frankly, I think if you want to get all legal on some kind of point of principle, this has the potential to turn into yet another replay of Dickens' Jarndyce v Jarndyce.

xylophone

Your grandfather's will created an Interest in possession Trust - the assets of the Trust were certain investments and a property.

The income beneficiaries received  a quarter share of the investment  income and a share of the rental income.

The original Trustees were your grandmother and a solicitor.  When  your grandmother died,  your late aunt (her daughter) took over as Trustee  (sole Trustee?) - she was also your grandfather's last surviving child and the   last income beneficiary.


There were  originally four income beneficiaries - the terms of the trust stipulated that as each income beneficiary died, a sum equivalent to a quarter of the capital should be released to his/her heirs? Those heirs also became beneficially entitled to a quarter share of the property?

The property remained in the legal ownership of the  Trustee  but she was now bare trustee for the children of her dead siblings as well as Trustee of the IIP.

Your late aunt's daughter (your cousin) and her husband have taken over  from her as Trustees of the Trust.

Presumably  this cousin/Trustee has now taken her mother's share of the capital and she and her husband are now  just Bare Trustees of the house.

If the Trust is now just a Bare Trust, then all the beneficiaries (the eight cousins) have the right to call for control of the last remaining asset.

One of the cousins is a Trustee and she wishes to sell the property. She is supported in this by another cousin.

You, your brother and another cousin want to retain the property. 

The Trustee cousin's  two siblings live abroad and they (and another cousin) do not appear to have expressed a view.

Frankly, with eight owners, selling the property seems to be a very practical plan.

Has somebody looked at the CGT implications?





 

lunarjan

My brother is looking into  CGT as part of our consideration of all possible scenarios.
We’re not planning any legal action but simply want the chance to discuss our best options with everyone.  We thought it would be a good idea to keep the property until the end of the lease in order to improve it, and then possibly sell, depending on what everyone wants. This is our last inheritance and to me it would be sensible to make the best of it.
I’m so grateful to everyone who’s taken the time to respond to this post, it’s been really helpful.

getmore4less

If you belief the property should be kept buy it yourselves and take action to get the tenants to do the maintenance..