Never heard of a Life Tenancy before? No rent paid, sounds very odd?
From my knowledge of tax a life interest is that the property has been left to Party A in a will, but it stiplulates that Party B has a right to reside in the property for the rest of their life. An example of where this might be seen is a father leaving a property to his son, but stipulating that the father’s partner may live in the house for the remainder of their life.
The value of the inheritance is split between the two parties based on the life expectancy of the Party retaining a life interest.
So in this case I would imagine that the ultimate owner of the property wants to sell but has no legal right to evict the current resident and so must sell on the property with the “tenant” in situ for the remainder of their life.
The big question is how old is the tenant?
very surprised to see it in a new build;
there have been other cases here - usually a nominal sum in rent
Here are the rates applied based on the age of the tenant.
I would imagine there will not be a bidding war on this one. If I was to get involved in this, you would need to find out the age of the tenant, and ideally any underlying health issues (as horrible as that sounds). You would have to value their life interest, take this off the market value of the house and even then you would be playing a guessing game as to how long the tenant will live.
Really is only suitable for an investor to buy and I would be adding a heavy discount to the price based on the life tenant.