References: , [1835] EngR 1081, (1835) 7 Sim 490, (1835) 58 ER 925
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A. was entitlecl for the joint lives of himself and his father to a rent-charge of £500 charged on an estate of which his father was tenant for life, with remainder to A in fee. A having agreed to sell to B a perpetual rentcharge of £500 issuing out of the estate, assigned to E. the rent-charge to which he was so entitled, and conveyed his reversion in fee to trustees in trust to secure to B a rent-charge of £500 a year, to commence on the termination of the prior rent-charge. Held, that the transaction was not to be considered as a sale of an interest in reversion, as A when he made the agreement, had it in his power to secure to B a perpetual rentcharge of £500 in possession.
In determining whether a fair price has been paid for a reversionary interest, the market value, and not an actuary’s estimate, ought to be regarded.
Last Update: 13-Dec-15 Ref: 316589