is he a landlord?

dimbo61

Your brother could sell the property to his son at below market rate with the difference making up the gifted deposit.
Son takes out an offset mortgage with YBS ( friends and family)
Your brother then puts the money from the sale of the property into HIS offset account offsetting his Son + Daughter in Law offset mortgage.
The young couple and his gran kids live in house and pay mortgage BUT they pay very little interest as Offset accounts HELP.
House is sold and he has money in offset account should he need money.
As the balance goes down each month he can either spend the money or drip feed into Cash ISA,s

NowRetired

Your brother could sell the property to his son at below market rate with the difference making up the gifted deposit.
Son takes out an offset mortgage with YBS ( friends and family)
Your brother then puts the money from the sale of the property into HIS offset account offsetting his Son + Daughter in Law offset mortgage.
The young couple and his gran kids live in house and pay mortgage BUT they pay very little interest as Offset accounts HELP.
House is sold and he has money in offset account should he need money.
As the balance goes down each month he can either spend the money or drip feed into Cash ISA,s

And others said my brother's way is complicated.

dimbo61

My Idea only works if the son/ daughter in law have the ability to get a mortgage.
It also protects your brother and his money as it still belongs to him until he spends or gives it away.

st999

When my brother died intestate, his daughter just moved into his house, left all the bills in his name, and never closed his bank account, in fact the bank doesn't know he has died, and puts enough money into the account each month to pay the bills.

She has been meaning to get things put in her name but has never got round to it.

This has been going on for the past 5 years.

G_M

Werdnal wrote: »

Anyone who owns a property, does not live there themselves but allows others to live there instead, is technically a landlord.

Are you sure Werdnall?

I believe if no rent changes hands, there is no tenancy. He would be an 'Excluded Occupier'.

Of course, 'rent' does not have to be cash - if the occupant lives there in return for, say, re-decorating, renovating, re-roofing, maintaining etc, that would constitute an exchange ('consideration') which is a form of rent.

Whilst I agree that to be on the safe-side a gas certificate (done at the same time as an annual service) is sensible, I'm not convinced it would be compulsory.

But happy to be challanged/convinced on this.

edit: see Shelter's tenancy checker here. Q1 "do you pay rent?" "no"....

princeofpounds

You are right G_M. Kind of.

If there is no consideration passing between them then no tenancy is established, so he will not be a landlord in the sense of a landlord of an AST.

But he is still the property owner (i.e. the lord of the land!), so will have some duties of care if he permits occupants.

Mallotum_X

Maybe it would be simpler to give the son the house now?

CKhalvashi

gwynlas wrote: »

Your brother also needs to think about your nephew pre deceasing him or divorcing wife and what happens then. Presumably he would want inheritance to go to his grandchildren rather than ex daughter in law and her new husband.

That's why it's done as a conditional gift, so that should son divorce, it's his house in contract, and should he die, it goes to the children, but wife has a right to live there.

CK

G_M

princeofpounds wrote: »

But he is still the property owner (i.e. the lord of the land!), so will have some duties of care if he permits occupants.

So common law duty of care rather than statutory obligations eg repairing under LL/T Acts and GSC?

But what would be those common law duties?

As I said, it makes sense to get a GSC (etc) just to be safe.

HappyMJ

NowRetired wrote: »

Why does a rented house need a gas safety certificate and an owner occupied house not?

so the minute my brother passes away and his son inherits the house there is no longer a need for a gas safety certificate.

What has changed?



Because none of this has been thought out yet, this is why I am asking questions.

my brother thought the simplest way would be for his son to move into his house, and he move in with me.

You will need (or at least should have) a gas safety certificate as the property owner is liable for anything that could happen regarding the boiler/fire not being safe for any occupiers. Tenants aren't normally allowed to fix anything to do with the property and they rely on the landlord to fix issues. An owner is only responsible for themselves...any damages they could claim would be from their own pocket anyway so a gas safety certificate isn't required. They are cheap enough to get.