On a Plain
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The answer depends on how the 'life tenancy' arose, was it via a will or did she transfer her own house to another witha right to remain until her death. a right of Residency is not taken into account in Fair Deal financial assessment but 'Life Interest' is. There is a table with values and ages etc. Can you tell us more about the origin of the tenancy, her age and the value of the house?
A copy of the will will have to be submitted to the HSE along with the application. If the HSE assesses the right as anything other than a 'right of residence' it can be assessed as follows: €450,000 x .2538 = €114,210 in year 1. This would be the capital value of the 'right' and would then be assessed at 7.5% per annum. There is a table for getting the multiplier which is based on age.
Yes, it's very confusing. Anything that is other than a 'right to reside' and specified in the will as such, may well be regarded as 'life interest' which is reckonable. Many people made their wills pre Fair Deal and did not distinguish between the two but are now caught out. The life interest suggests that, if the property were sold before the applicant's death, they would benefit from the sale, but I'm not certain. That is why 'right to reside' is so important as it imparts no property right.
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