41.1 Lifetime Annuity Schemes

In the late 1980s, some companies (in particular, life assurance companies) promoted schemes to provide extra income for retired homeowners by providing lifetime annuities financed out of their heritable property. The schemes had various names but were usually known as ‘lifetime annuity schemes’ or ‘lifetime income plans’.

In a typical scheme a company would buy a house at its full current value, the price being paid in the form of a lifetime annuity. At the same time the company would grant a lifetime lease to the former owner at a nominal rent. By the sale of the house, the retired homeowner received a monthly income for life while retaining occupancy of the property under the lease. The lease, however, being a lifetime lease, fell short of the requirements of a long lease and was therefore not recordable in Sasines or registrable in the Land Register.

The schemes did not become common and, as far as the Agency is aware, they are no longer being offered. Any revival of the idea that registration officers may encounter in deeds or applications for registration should be brought to the attention of the Legal Services.

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