Leaving a lifetime interest

FlorayG

As far as I am aware, she just gave her friend the money. Her name is not on the deeds, she is a tenant. Yes, I know it's stupid, but it's what she did; she trusts him.
She doesn't want equity in the property, she just wants to live there for the rest of her life

fourmarks

Then I earnestly hope their friendship endures.

silvercar

anselld said:

If he dies the mortgage would be paid off out of his Estate and she would retain a lifetime interest in the property prior to it passing to the final beneficiaries.  Not sure what would happen if the Estate was insolvent but that doesnt sound likely to be the case.

Is there any obligation on the benefactors of the will to use some of his estate to clear the mortgage? I wouldn't have thought so, unless that is specified in the will. Otherwise the mortgage would just be a debt on the estate that the lender could call in. 

theartfullodger

FlorayG said:

theartfullodger said:

Wills can be changed. Obvs.. Even her getting copy of current will doesn't mean it won't be changed tomorrow.

What matters currently is what her existing tenancy says about this (or not).  Suggest she perhaps with you) after getting all existing paperwork together go see a solicitor or a local Citizens advice.

Suspect he invested expecting he will get a BIG payday when she dies (or has to go into a home)

I think he is genuine and doesn't intend to change it ( I haven't met him, but she has known him a very long time).
...

You don't know, you are guessing.  She/she needs to see (see i.e. read ) what the tenancy (nothing - so she has NO rights to stop eviction attempt..), deeds (£3 copy from gov.uk land registry - look it up!) and current will says - not just accepting what he says.

But that won't tell you what any changed will says will it ?

Greed is a massive incentive for many.

FlorayG

Yes I am guessing about him; I did say I THINK he is genuine, I don't know him. But both she and I have seen the deeds and the tenancy so I know I'm correct about those

theartfullodger

Good luck!

FlorayG

My original question was, can he give her a lifetime interest in a mortgaged property? From the answers I gather that he can only do that if he has also stipulated in his will that the remaining mortgage is paid off out of his estate?
Then the lifetime tenant who pays no rent becomes the tenant of whoever is the final beneficiary of the house or its value? 
EEK

Tucosalamanca

I hope that she has an assured tenancy in place.

It would appear that she's gifted her equity to a friend.

As well as leaving herself in a potentially difficult housing situation, so has also left herself in a position where she has no equity to fund later life care, if ever needed.
I have no idea if the council would consider the equity transfer as a deprivation of assets?

It sounds like a very questionable situation, with the only winner being her friend (and possibly his family).
I would say that establishing security of tenure is a priority, this will almost certainly be better if done now, while both parties are fit and able.

silvercar

Could she put a charging order on the deeds for the value of the investment she made in the property when it was bought?

anselld

silvercar said:

anselld said:

If he dies the mortgage would be paid off out of his Estate and she would retain a lifetime interest in the property prior to it passing to the final beneficiaries.  Not sure what would happen if the Estate was insolvent but that doesnt sound likely to be the case.

Is there any obligation on the benefactors of the will to use some of his estate to clear the mortgage? I wouldn't have thought so, unless that is specified in the will. Otherwise the mortgage would just be a debt on the estate that the lender could call in. 

There is an obligation on the Executors to clear all debts of the Deceased prior to any distribution of remaining assets to beneficiaries.