If I have an interest in a property by way of a Declaration of Trust which has limitations effectively being the death of the occupier, are there any financial deals or tools that would enable me to realise the asset now, either via cash, pension or income?
Not enough detail. You can of course sell any interest in any property. Whether you would get a price comensurate with its value is another matter. You could take advice from an estate agent with a view towards selling your interest as an investment either by private treaty or auction. I think you may be disappointed by the anticipated proceeds. It will depend to some extent on the age of the occupier who one might assume is already providing an income stream or does he/she have a life interest?
You can sell this interest at an auction run by a firm called Foster & Cranfield.
Expect to get, at best, the amount you are due at current house prices discounted at 4 to 5% pa (compound) for the life expectancy of the occupier of the house. As an example, if the occupier is a 50 year old female, expect to receive around 15% of the amount you would get if the occupier died tomorrow. You would get a lump sum, which you could invest in an annuity if you wish. F&C can give you a better idea of value than I can.
I assume that you have safeguards to prevent the occupier from remortgaging the house and so on? What are the provisions in the deed dealing with the position if the occupier wants to move house or has to go into a nursing home?
You may prefer to hang on to the interest, as you can see that you won't get a lot for it, but ask F&C for an estimate first, just in case I'm wrong.
Many thanks. This is just the sort of thing I'm looking for and gives me a foundation for further research.
A life interest is being offered as a possible solution to a problem so the exact terms have yet to be determined.
Even 15% now has attractions given the likelihood that I'll never see a penny of the full amount in my lifetime.
The snag with carving out a life interest from a property in this way is that it devalues the property. You might end up with a reversion worth 15% plus a life interest worth say 50%, with an overall loss in value of say
35%.
Are these prices on the assumption that the property is retuning a "regulated" rental income.
the OP's property isn't
tim
Nope.
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