Can a limited owner create a legal charge?

HarborBrit

In Irish Law, is it possible for a limited owner of a property to create a legal charge on that property? For example, could someone who has been given sole right of residence on a property for their lifetime legally take out a loan against that property? Thanks!

Vinny Cleary 25

no

Peregrinus

At most, you can only grant a charge over your own interest in the property. If you have only a limited interest in property, that's all you can offer as security. And most lenders aren't really interested in security like that, so charges of this kind are created only rarely.

But even that assumes your interest is capable of being assigned or charged. An exclusive right of residence generally isn't. If I have a right to reside in a particular house (that I don't own) for the rest of my life, I can't sell or give that to someone else so that they can live in it for their life. And if I can't sell it or give it away then I can't charge it either, even in the very unlikely event that I could find someone willing to accept it as security.

HarborBrit

Thank you @Peregrinus , that’s a very helpful response!