Peppercorn agreement

princeofpounds

I still think the points that Adrian raises have not been conclusively addressed. The key question here is in what capacity the OP is buying this property and permitting occupation. The most normal way to do this would be establish a trust where the occupant has a life interest in the property. The trust, run by a trustee, would then be responsible for managing that relationship, but they are free from many of the burdens of being a landlord.

This makes it sound like some money has been passed to beneficiaries, with the request (probably unenforceable, which is why people use trusts!) to buy a house with it that will be rented to the occupant. This is not normal.

However, if it is the case, then Adrian is right - broadly speaking you get to define the landlord/tenant relationship and can rent it out on a peppercorn agreement. But you have to comply with statutory rules around renting a property which will introduce important constraints and risks for being the landlord. You will have repairing and safety obligations regardless of whether she pays as agreed for the maintenance or not. The property will be mixed up with your own personal tax affairs. If she fails to insure, the property burns down, it's your problem, assuming she doesn't have assets to claim against etc. (Indeed I'm not even sure she has an insurable interest in the property, although the contract may change that, I'm not sure). Etc. 

SDLT_Geek

OP has “cleverly” started another thread on the same question:  https://forums.moneysavingexpert.com/discussion/6242672/family-member-living-in-property-rent-free#latest
At least on that thread is the missing information as to what the Will says: 

“It says xxx lives in family home for up to 12 months ... then property to be sold and trustees to purchase a new property to the value of £ and hold that property on trust for sale with power to postpone the sale in accordance with the following directions....xxxx may live in the property and use it as her principal place of residence until death without any charge and for so long as she pays all rates and outgoings and keeps the house in good repair and insured to the satisfaction of the trustees”

K_potts

I’m sorry - I had forgotten I’d asked this before (here) at the start of the process when my mind was jumping forward, my recent enquiry is because that’s where we now are - wasn’t trying to be clever, if I was that clever I wouldn’t be asking 😂