1. Free Legal Help, Legal Forms and Lawyers. TheLaw.com has been providing free legal assistance online since 1995. Our most popular destinations for legal help are below. It only takes a minute to join our legal community!

    Dismiss Notice

Life lease

Discussion in 'Rental Agreements & Subleases' started by Norelle, May 24, 2017.

  1. Norelle

    Norelle Law Topic Starter New Member

    Messages:
    2
    Likes Received:
    0
    Trophy Points:
    1
    Jurisdiction:
    North Carolina
    I have been renting a house I own in Fayettville North Carolina to my brother for 2 years, he wants me to sign a life lease agreement in case something happens to me.
     
  2. Norelle

    Norelle Law Topic Starter New Member

    Messages:
    2
    Likes Received:
    0
    Trophy Points:
    1
     
  3. mightymoose

    mightymoose Moderator

    Messages:
    11,361
    Likes Received:
    1,959
    Trophy Points:
    113

    I'm gong to assume your question is if that is possible?

    Such a lease would stop the income. You would have to arrange a one time payment for the remainder of the lease period. If you rely on that income to maintain the property or pay taxes then it isn't really practical in my view.

    What you could do is put into your will what should become of the property. If you will it to your brother he would not have to worry about losing the home if something should happen to you.
     
    Last edited: May 24, 2017
  4. army judge

    army judge Super Moderator

    Messages:
    32,841
    Likes Received:
    5,123
    Trophy Points:
    113


    Why would a "life lease" be of any value to you?

    If you are a landlord wishing to maximize his/her finances, it wouldn't.

    The one you should worry about protecting is yourself, and your assets.

    Let's say your brother died, how does a life lease help you?

    Let's say your brother contracted a dreaded disease which required him to be confined to a nursing home, how does a life estate help you?

    What if your brother committed a crime, got arrested, held in jail on a $500,000 bail, got acquitted after two years, how does his LIFE ESTATE benefit you?

    You're either a landlord, or a benefactor.

    One last thought for you to ponder.

    What your brother calls a "life lease", is what the law terms a "life estate".

    Here, this will help:


    Life Lease Law and Legal Definition | USLegal, Inc.



    Let's say your property is valued at $500,000.
    Wal-Mart, the city, the state, or the federal government comes along and offers you $2,500,000 to buy your property.
    Who will demand YOU to give them HALF of your windfall to buy out that "life lease"?

    Does that help you understand why a "life ANYTHING" isn't in your best interests.

    I used to own many rental properties.
    I gave some away to relatives, and sold off most of the rest.

    I retain a few to round out my portfolio, which also give me access to liquidity should I ever need it.

    Financially you'd be better off "GIFTING" or "SELLING" the property to your brother, mate.
     

Share This Page