Rent free lodger

imported_jac

Hi

I hope this is the right section for this question. My sister has inherited her Aunt's house. Her aunt had a companion who had lived with her for 18 years. He wants to continue to stay in the house and will pay the utilities but says he can't afford to maintain the house. He will not be paying any rent. The solicitor has suggested that my sister should insure the house to cover her for maintenance. As there will be no rent paid should the insurance be a normal household insurance or a landlord insurance.

Thanks
Jackie

G_M

I assume your sister is happy for the 'guest' to stay in her house?

If the insured (sister) is not living there I imagine the insurance will be invalid, but only the insurer could answer this for sure! If so, yes, landlords insurance.

I assume there is no mortgage?

Although not 'rented' it is arguable that an annual gas safety certificate would be required. Even if not it's a wise precaution.

There are various insurances for things like central heating, electrics, plumbing etc. Whether your sister chooses to take this insurance or deal with issues as they arise is up to her, just as this is a decision any home owner makes.

I know of no insurance for other normal maintenance issues like replacing slipped roof tiles, re-painting exterior woodwork etc. These are just expenses of property ownership.

But basically this seems like a bit of a poisoned chalice of an inheritance as it will cost her money rather than giving her money!

Annisele

I'm wondering whether the companion might have a legal right to stay in the house regardless of the will. It's possible that he could argue that he'd made contributions in the last 18 years such that he'd acquired an interest, or that he was a dependent of the aunt and so provision should be made for him. It sounds potentially messy!

As for the insurance, so long as the insurer knows the situation (i.e. sister doesn't live there, companion does) then there shouldn't be a problem. However, she needs to get insurance sorted sharpish - things like the boiler are up to her whether she self insures, but most people can't afford to self insure against the house burning down.

imported_jac

Thank you G_M and Annisele for your replies. Yes it is indeed a poisoned chalice as my sister was going to live there but doesn't want to share with someone she has no real connection with. The companion was not mentioned in the will at all and our aunt always said that he would have no claim on the house. However, he has contested the will and the solicitor says that, because he has lived there for eighteen years, he has some rights. At the moment my sister will be paying out for insurance and maintenance on the house and getting no income from it. Luckily our aunt left some cash as well which will help. There is a maintenance agreement ongoing with the gas boiler supplier so will that cover the safety angle. Normally we do our home insurance online but it sounds as though she needs to go and talk to someone at a branch and explain the situation. Can you recommend anyone?
Thanks again
Jackie

Annisele

That sounds a real mess.

Certainly somebody should insure the house - and if your sister's solicitor says that that person should be her, I'd be inclined to believe him. I don't think this is the sort of situation that can be sorted out online, but I've never had to deal with it myself so I don't have any recommendations. I'd suspect that a local insurance broker might be the way to go, but in your sister's shoes I'd start by asking her solicitor.

I'm not convinced that the companion is a lodger. If he has exclusive occupation of the house, that sounds more tenant than lodger - but given how he's acquired his (possible) right to occupy, he might not be a tenant either. Any confusion over that makes the tick boxes on online application forms a bit tricky.

Is the property in England and Wales, in Scotland, or in NI? I know the rules are different (though I'm not sure what the rules are). Other people might be able to give more help if you say where it is.

imported_jac

Hi Annisele

We are in England. Our aunt died in June and the household insurance is still current so it is insured at the moment.

Jackie

atush

I feel your aunt should probably sell the house and offer to give him some of the funds released. Or if she really wants to live there, perhaps sell what house she has now and then offer to buy him off.

It is very messy, but i have known women in this situation and if not married they were turfed out and got no money even if they did pay towards bills.

imported_jac

Hi Atush

He refuses to move so she has resigned herself to the fact that she cannot live there at the moment. The solicitor feels that it would be difficult to get him out of the property and that going to court would be very costly. So really she has had to come to terms with that rather than get frustrated about the situation.

Thanks
Jackie

CLAPTON

you haven't said what the house is worth or the age of the companion

it might be better to bite the bullet now and spend the money trying to evict him now rather that letting it fester for years and years

sarahevie

I agree, I think that it would be money well spent getting the 'lodger' out - think about the impact and cost of alternative accommodation, repair work etc

imported_jac

Hi

The lodger is in his late 70's and not in good health. The house is worth approx £80,000 and my sister also has her own house which she was going to sell so that she could move into her Aunt's house, which is nicer and a bungalow. However, she has accepted that she must stay at her house for the time being and wouldn't like to evict an old man and then have to live with the neighbours afterwards, who are his friends. Her only concern now is getting the right insurance for her situation and, as has been suggested, she will contact a broker to discuss this.

Thanks
Jackie