The deceased owned a retirement flat. There is a provision in the lease that on a disposal the seller has to pay to the Landlord .5% of the sale value per year of occupation up to a maximum of 5%. There is a deemed disposal if no sale within 12 months of death.
As this is a liability increasing over time within the lease itself, I would suggest that this is an appropriate deduction for IHT purposes?
I have also been dealing with the more common structure where there is no deemed disposal but a straight say 5% event fee only triggered on a disposal. Would this also be an appropriate deduction?
I would distinguish these from event fees triggered by when the Landlord actually sources a buyer from their own waiting lists where they are effectively an estate agent.
Blandy and Blandy LLP