2nd home - family member living in it

LJ1

Ok will try to cut a long story short.
Matrimonal home in joint names
Ex moved out May 2008
I move out April 2011
Divorced Sept 2009

Matrmonal house up for sale

But ex`s daughter has just split up from boyfriend and I have just received email from him that she is moving into the house until it is sold.

Seperation agreement we have states ex is to pay the mortgage until the house is sold. I have been paying the council tax and insurance.

I realise that if the house is not sold within 3 years of me moving then I will be liable to CG Tax - but fingers crossed i will sell before then.

I dont know what arrangements my ex will have with his daughter as far as rent goes.... I doubt he would tell me anyway. I would like to think he will allow her to stay there rent free - so she can save up a bit...to move on when the house is sold.

He has just told me to stop paying what i pay as of the end of this month ie council tax, gas elec(which currently are 0.00) and insurance. Whilst that is great will give me some much needed cash...I am not exactly sure if this is correct.

Can anyone give me any advise on this,
I do not want to get into trouble with the HMRC or tax credits people

Any advise very much appeciated.

CIS

But ex`s daughter has just split up from boyfriend and I have just received email from him that she is moving into the house until it is sold.

As the occupier your ex's daughter is liable for the council tax from the date she moves in. I wouldn't just leave it , I would contact the council and make sure they are aware.

G_M

The house will not be sold. Either it will come off the market, or stay on but with the daughter making sure any viewers are thoroughly put off - why would she help sell it? It's her home now!

IF this plan goes ahead a proper rent should be paid and split between you. You will be a landlord.

But I would do everything possible to scupper this idea, unless you
a) are happy to take on a LL's responsibilities (see here)
b) don't want your share of the money from the house sale
c) are happy for an ongoing involvement with your ex and family
d) are happy to pay tax on rent she pays etc

If necessary, move back in yourself (It's YOUR house still) temporarily, to stop the daughter moving in and gaining tenant rights (either keep her out or, if you must, let her in as a lodger).

Then get the house sold fast, reducing price if necessary to get it over and done with.

LJ1

Thanks for replies so far,

Alarm bells had started to ring with this arrangement.
But the house does need to be sold.
Moving back is not really a option open to me.

Price would have to come down a lot for his daughter to buy.
Whist dont really trust ex much - he needs the house to sell as much as I do and for a fair price.

Think I will just need to trust him on this one.
But i do appreciate its a big risk for the reasons pointed out to me.

If ex were to allow his daughter to stay at the house ``rent free`` sort of house sitting until the house is sold. No rent paid
Would there be any letting income implications - does anyone know.
Would it be better to notify HMRC of the situation -

I dare say we could get some form of documentation drawn up to keep everyone right here.

Daughter just needs somewhere to stay - the house is far too big for her - not somewhere she would want to live in to remote. I am confident she will move when the property sold.

Im more worried about any HMRC implications than I am about anything else here.

Werdnal

HMRC wouldn't be intrested unless there was an income, so if no rent then no problem.

But any mortgage or insurance would be an issue. If mortgage is in your and ex's names and neither of you living there, they should be informed. Residential terms mean that you or ex should be resident and if you aren't then mortgage would be void. They should look kindly on this as it is a relative staying there, but better safe than sorry so I would inform them. Similarly, your insurance policy is based on you living there, so this would also no longer apply, but check with them as someone living there would be preferential over leaving it empty.

I would also insist that all utilities and council tax are put in her name, as if the suppliers/CT only have you as last occupier, they could come chasing you if they are not paid.