Adding a restriction at Land Registry

[HarryS]

Hi everyone. We need some help with Land Registry. I have emailed several solicitors, but nobody has ever got back to me, so I come here in the hope someone can help.

We live in England, and we wish to transfer my fathers share of the family home (currently 50%) to my brother. The other name on the property is mine. My father wishes to add a restriction at Land Registry which would grant him a life interest in the property despite him giving his share up. Guaranteeing his right to live in the property for the rest of his life.

I have looked through the Land Registry website at all the possible restriction codes to use but I am unsure which one to use. I know there may not be a life interest one, but I was told that there is another one would have the same effect. Can anyone shed any light on this?

We have already completed our ID1 forms and they expire in 2 months, so we really need to get this done.

I would be very grateful for any advice.

Many thanks

[Pezza54]

Hi
Welcome to LB

Your father needs to consult a solicitor about the drafting of a Life Interest Trust. This type of trust should cover more than just living at the property for the rest of his life, such as insurance, maintenance, council tax etc. The solicitor will advise if any changes are necessary to the title deeds at the Land Registry.

Although your brother is being gifted a share of the property, your father is keeping a beneficial interest in the property. This means that even if 7 years pass since the date of the gift. the value of the gift at the time it is gifted should still be included in IHT calculations.

Is your brother living at the property? The tax rules regarding gifts with reservation of benefit may be different if he is

[atticus]

I agree. This is not something that can be done simply by a restriction. There needs to be a properly worded document recording the full terms of this transfer.

If this is being done to avoid care home charges, it may not work.

[HarryS]

Thank you both for your very helpful replies.

No, this is not being done to avoid IHT or care home charges. The problem is we cannot find any solicitors that are able/willing to do this (Birmingham).

I wish I had kept the details of a solicitor who I once briefly spoke to on the phone, a while back, who said she could do it via a restriction.

We really dont understand anything about trusts, etc. So, I think you are correct in that we need to find a solicitor who is an expert in this field. But, I have a feeling that would be very expensive which is something we wanted to avoid.

[Pezza54]

What do you call very expensive? You may not need a local solicitor. Try contacting a few and see if they are prepared to draft one by telephone/email/post
To check whether the solicitor you spoke to is correct, try phoning the Land Registry helpline.

Please read the article "A Guide to Gifts with Reservation of Benefits" at www.elm-online.co.uk