I went around to my folks the other day and bumped in to a neighbour of theirs and got chatting. She's batty but friendly and we have chatted often - usually because I park outside her place rather than risking an oil leak (happened before) on dad's drive.
Same style of bungalow as my parents - value about £450k - would have been up for £500k last summer - a couple sold for £499,950 when the owners passed away - all no onward chain.
The neighbour has sold their bungalow to a "we buy your home and you can live in it until you die" outfit.
I was interested in this, because I was offered the chance (and turned it down) a few years ago to buy a property with a life time tenant - no rent.
The neighbour is 79 and in mediocre health. Her life expectancy is 83 (average UK for women).
I asked and was allowed to see the contract.
It allows her to live in the property until she dies.
She is responsible for all utilities, council tax etc.
She is responsible for all maintenance and there is a schedule - exterior woodwork to be painted every 7 years or sooner if required etc.
She is responsible for all repairs - she needs to insure it - not sure how that works as she's not the owner now.
When she passes there is a £5k - a fixed amount not a percentage - residual value - which is payable to her estate.
If any maintenance is outstanding then the residual value will be reduced accordingly.
And the offer she accepted and received......
£70k - I've seen the bank statement!
Oh, there's more, there was a £3k fee to use the solicitors that the buyers recommended, because they're really nice, efficient and cheap! They also wanted her to pay their legal fees - I couldn't see what they were.
I can't believe this is legal. Anyone worth reporting to? Any action that could be taken - obviously by her relatives - kids work abroad but do come back to check on her every couple of months - so probably have no idea.
(I've done a company check on the buyers and it's like "Russian Dolls" - companies owned by companies - with no obvious real person.)
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Lifetime tenancy - astonishing con - IMHO 
Lifetime tenancy - astonishing con -.. 