Beneficial interest as security for a loan

bootzey

Hi. Please bare with me as I like to give a bit of background info.
My Dad passed away in 2020. His Will was a mirror Will with Mum's and they were 50/50 Tenants in Common. There is also a Form A restriction on the deeds to their home. Mum is 100% legal owner and has a life time interest to live in the property until she no longer has a need for it. My 2 brothers and I, according to my Dad's Will, we're supposed to have been added to the deeds as TIC with Mum, but this hasn't been done. I don't know why.
I know the Form A restriction prohibits anyone acting alone in relation to deeds.
I am 61, chronically ill with sensory and heart/cardiovascular issues and unemployed. I have been declared by DWP as LCW (limited capability for work). The employment market is very ageist and I have only had two interviews in 18 months. Plus I need a job that doesn't impact my health issues which makes job hunting harder.
I am a burden not only on the welfare state but also the NHS and social housing as well. I live in a three bedroom house with my daughter. I'm trying to swap to a two bedroom bungalow. I am bedroom taxed for my spare room and lose a further £90/month housing benefit because my daughter is a working adult. I am in arrears with rent, council tax and have a total of about £14K of debt. My rent is £720/month of which about £500 is paid by HB. A family with young kids should have the home I live in so I'm trying for a swap. This could massively reduce my rent and CT as I'm looking at an area where the rent is £500/month, sometimes even cheaper.
I get £400/month to live on before bills, debts and topping up my rent deductions due bedroom. My daughter pays £35/week which obviously helps with the deduction they take for her living her.
My life needs a massive change. A noose is around my neck and the stool I'm standing on is being kicked from every direction.
So, my question (at last) is...do the lovely experts here know of a way I could monetise my beneficial interest as bequeathed to me by my Dad? It is a one third share of his half of the proceeds. So ultimately a one third share of the total proceeds as Mum's Will is the same. House value is £600-700K. So currently my beneficial interest is £100+K.
I have explored and enquired about probate/inheritance loans because they initially seemed ideal. However, with there being no probate for my Dad and my Mum's life interest there's no chance. I've asked my brothers if they would buy my beneficial interest from me via a deed of trust but they point blank refused. I know it's an asset in law, and I could sell to a third party, so I'm wondering if anyone here knows if I could somehow monetise it please?
Thank you in advance.

Nasqueron

The only way this would happen is a secured debt against the house and no lender is going to touch this as you have limited means to repay the debts with little income and it's not your house

Your rent is £720 a month - why is your daughter only paying £140 - could she afford more?

Have you spoken to debt charities for help?

Keep_pedalling

You don’t currently have either beneficial or legal ownership of your father’s share of the property. You father’s will created an immediate post death interest trust which is now had legal ownership of his share. Your mother has beneficial ownership of the whole property..

Your status is a remaindernan and do not inherit until your mother dies or has to has no further use for the home. There is therefore no way of raising finance against the house.

bootzey

https://forums.moneysavingexpert.com/discussion/comment/82007241#Comment_82007241

Thank you.

Yeah, I know they won't secure against the house, not least because of the Form A Restriction.

I'm hoping for something similar to the probate/inheritance loans that would be secured by deed of trust against my beneficial interest. With these the interest is rolled up until the beneficial interest is paid, it will then be paid by the executors directly to the loan company.

I've spoke with her about it. However, it would mean she won't be able to save up a deposit and rent in advance and at 29 she desperately wants to get away from the old man.

Thing is, if my situation stays the same, and with every day the chances of finding a job get less and less, and I manage to live to say 80, there's every chance that the burden I am on society will cost upwards of £500+k. So I want try and change that.

bootzey

https://forums.moneysavingexpert.com/discussion/comment/82007404#Comment_82007404

Thanks for your input. Well, remaindernan was a new rabbit hole to go down, not heard that before.

Though it seems that a remaindernan does have "seller rights". I think it exists when Tenants In Common isn't present.

However, under Tenants In Common no one is entitled to legal ownership other than the Tenants. The beneficial interest rests with the Tenants who divide it up to protect their intended beneficiaries. My Mum can put my brothers and I on the title deeds as instructed by my Dad's Will, but this has no financial implications. Doing this will mean probate isn't required for her either as surviving Tenants In Common automatically become legal owners upon death of a tenant. My Dad's 50% (approx £300K) beneficial interest is held in trust and guaranteed to come to my brothers and I when for whatever reason the house is sold. If Mum goes into a care home permanently the house would be sold and her 50% beneficial interest via the Tenants in Common would be used to pay for her care.

I'm just trying to find away of obtaining the third of my Dad's beneficial interest a bit earlier as it will help not just me but my 2 kids, the local council as a family could have my house and my housing benefit would be reduced, DWP as I could start working for myself and the Universal Credit who would have reduced payments to me.

silvercar

How soon could your daughter move out? That would mean you could get a 1 bedroom property, have lower rent and bills and things would be more affordable.

Can you even do a house swap while you have arrears?

I also don’t know how monetising your beneficial interest would affect your benefits. Something to check before you pursue that road too far.

Keep_pedalling

https://forums.moneysavingexpert.com/discussion/comment/82007785#Comment_82007785

The tenants in this case are your mother and the trust (which I hope someone has registered with HMRC) The only beneficial owner is your mother, which is why although only half the house forms part of her heritable estate but all of it is included in her estate for IHT purposes.