Moving in with family - legal pitfalls?

woodfairy

Hi all,

Looking for a bit of advice for my family. My brother and his wife are starting a new business. They are going to sell their house and use the money as capital. In the meantime they and their two kids are moving in with my mum to save money.

They won't be paying rent but will contribute towards the bills. There will be no formal contract, but I'm trying to encourage them to put something in writing regarding the arrangements.

They are working out the personal space issues and various other practicle considerations (!), but mum is concerned where she would stand legally if for some reason things went wrong with the business or the arrangement.

If she wanted them to move out but they did not want to go, would they have any rights as tenants? Would she need to take legal action to evict them? I'm sure it would never come to that but it's nice to know where you stand!

She is particularly concerned what would happen if they could not make their contribution towards the bills - she could not afford to cover the extra. If they found themselves in a position where they had to move out and claim housing benefit for a house - what would the situation be? Would they be classified as homeless as they are living with mum and don't have their own house? Would she have to formally evict them in order that they can claim housing benefit?

Can anyone help with these legal issues or is there any practical advice about this kind of thing? Going to be a difficult situation so want to try and anticipate any potential problems and nip them in the bud

Thanks!

olly300

If you are in England this advice would be useful.

I think your mum should charge them a nominal rent to cover wear and tear of her property as well as the bills. People tend to respect things more if they are paying for them.

woodfairy

Hi Olly
Yes, we are in England - thanks for that, looks really useful!

xylophone

Perhaps your mother should see a solicitor and ask about drawing up a formal agreement?

BitterAndTwisted

The very last thing the mother should be doing is drawing up a formal agreement. What she does not want is for these family members to suddenly acquire rights as tenants. While they are living with family, whether paying rent or not, they are guests who can be asked to leave whenever the mother decides they should.

xylophone

A formal agreement could exclude tenants' rights?

BitterAndTwisted

In which case what sort of "formal agreement" do you propose?

tbs624

There is always the possibility of a Lodger Agreement...........

It_can_get_better

xylophone wrote: »

A formal agreement could exclude tenants' rights?

A written agreement can say anything you like, but that doesn't mean it can be enforced. An agreement can only add to the rights and not take them away.

BitterAndTwisted

I knew that but was wondering whether Xylophone did. As they made no mention of one, and it would have been helpful if they had, I was curious as to what possible solution they may have had in mind.....

KateLiana27

I might be reading too much into the way the original post was worded, but... is your mother actually happy about this proposed arrangement? Was it her idea or theirs? All these concerns about eviction, not being able to pay bills, etc... it sounds as though your mother might have reason (or gut instinct) to believe this arrangement will end in disaster.

If she is uncomfortable with it all, support her in saying no.