Children living in house! Classed as tenants?

lemonade_lifestyle

Hi,
Can anyone give me any advice please. We are thinking of allowing our two eldest children to live in our house because there is a chance we may need to temp relocate due to work. We would move into rented accomodation to complete this move.

The children (they are grown up!!) would be paying all their own bills and the council tax, but we would continue to pay the mortgage. I assume we wouldn't be classing them as tenants as they are family, but will we be able to register them on the electoral roll here and take our names off? Or can we be on the electoral roll for two dif properties...i'm thinking more of making sure the council tax is paid correctly.

We are racking our brains for ideas as if OH gets job some distance from here we need to be able to move quickly.

Any ideas greatly received.

Zelie

Electoral roll is not the same as council tax register. So you can certainly be registered for council tax in different areas but you can only be registered to vote in one area. And you don't need to be paying rent or mortgage to be on the electoral roll so your kids are fine to register.

princeofpounds

I assume we wouldn't be classing them as tenants as they are family

If they pay rent to you and you do not live with them, they will become tenants under the law with an AST. Not a problem, unless you fall out.

we would continue to pay the mortgage.

You might require permission from your mortgage lenders, technically, although I can't recall anyone ever getting in trouble for this. Also be aware there are insurance implications for being absent from your property.

Or can we be on the electoral roll for two dif properties...i'm thinking more of making sure the council tax is paid correctly.

Council tax database is not the same as the electoral roll. The liability for council tax will be set out by your council. General rule is occupants first, if no occupants then owners. There is nothing to stop you registering for council tax on ten properties if you so wish. I believe you can be on two electoral rolls but I'm not 100% sure on that so you should check.

zzzLazyDaisy

Remember also that if they are tenants and pay you rent, that money is subject to income tax. So for example if they pay you the same rent as your mortgage payments, then it won't be enough to cover the mortgage payments once tax is taken off.

Unless you go interest only, as interest is deductable from the rent before tax is applied. You'd still have to notify the taxman though, and complete a tax return even though no tax would be payable (in that example)

Jowo_2

Yes, people who let out their property to relatives and receive rent can be classed as landlords/ tenants with all the responsibilities, obligations and rights that it entails.

I've came across threads before whereby a relative has let out their property on a temporary informal basis to a close relative who refused to move out when they wanted to return to it, and had to go through the standard lengthy eviction process to regain possession of the property.

Having said that it seems that you are not accepting rent from them and zero rent payable can have certain implications for a tenancy. Stick the scenario through the Shelter website tenancy checker wizard and see how it is classed.

lemonade_lifestyle

Thanks.
Looks like i've got electoral roll wrapped round my ears....

I just want to make sure all taxes are paid correctly and no one has a leg to stand on to get me for none payment or anything else i could be doing wrong!!!!

I cant afford to sell house at moment but can afford to rent elsewhere if OH gets new job, kids want there own place so it seems the ideal solution-we think!!

lemonade_lifestyle

They are classed as an excluded occupier. So i guess as long as they aren't paying us any rent money but are paying the bills and council tax all should be ok. If i check out any implications with my insurance company.

casper_g

It's perfectly OK for someone to be on the electoral roll in two places. Students up and down the country are registered to vote twice. A friend who was absolutely convinced this was wrong tried really hard to "fix" what he thought was a problem after the uni registered us at our accommodation. The electoral registration officer eventually convinced him this was a common occurrence, nothing to worry about, and that it was simply up to his conscience not to vote twice in national elections!!

Owain_Moneysaver

casper_g wrote: »

... it was simply up to his conscience not to vote twice in national elections!!

Well, that and it being illegal.

Owain_Moneysaver

lemonade_lifestyle wrote: »

Hi,
Can anyone give me any advice please. We are thinking of allowing our two eldest children to live in our house because there is a chance we may need to temp relocate due to work.

You need to give them a tenancy agreement and specify they pay the bills and keep the place nice. Otherwise you have no recourse if they disappear one day leaving £££s owing in unpaid bills, trash the place, etc.

You will need permission from your lender, and to arrange landlord's insurance.

Charge them some rent so they understand it's a business arrangement.

Get all the utilities in their names, do an inventory etc.

Ensure that one of the grounds for repossession in the tenancy agreement is you need the house back for yourself.

lemonade_lifestyle

All imput from you has been well recieved.

Although i must add that our children are 22 and 25!! Yes they do have good social lives but i am sure (and most certainly not niave) that my house wont be trashed.....

I have realised i have to look into insurances as certain policies have different rules. However i still have really got a clear answer as to if my children genuinely arent paying rent do i need inform anyone?

The background is we have a mortgage with Northern Rock (got bad advice 10years ago) and we still owe more on house than its worth. So selling would see us out of pocket and give us nothing to put down as a deposit for next house. Husband made redundant last year and unable to find similar jobs in this area now, so we may have to look up to 2 hours journey from here. With a new job and extra wages we can afford to rent small house near to new work, my job is portable anywhere within the East Midlands so I'm ok. So want someone to look after house for us and keep it maintained until such time that we can afford to sell house again. We aren't gaining anything other than helping kids out who live in a !!!! shack at present and helping us become more portable.