Tenant rights when local authority wants to take a charge for owner's care home fees

keithgbucks

Help please forum-ites before I take legal advice.


We are renting a property (2 months gone of 6 on the initial agreement) which is being rented out for the first time as the owner has gone into a care home. Out of the blue we have received a letter from the local authority who is funding her care fees which says that they will be taking a legal charge on the property to secure the cost of care fees, repayable on the owner's death. It goes on to say "In the rare event that the Council was forced to exercise these powers (to take possession of and/or sell the property if the loan is not repaid)...it would be necessary to sell the property with vacant possession". It then goes on to say we must sign a form to reverse our priority rights below the Council's by signing a waiver form and thus be required to vacate the property if needed.


I assume this to be a standard letter but would be welcome on advice on the following (and any other further thoughts):

• There is no reference to this eventuality in our rental contract which I would think takes precedence
• It's not unknown for a property to be sold with a sitting tenant. Is there some statutory power which gives the local authority the right to put their claim on the property above ours. In other words are they trying it on?

The letter does suggest we talk to CAB or get (and pay for) legal advice but I'm keen to hear from anyone who has had a similar experience and the outcome.


TIA

anselld

Don't sign. The Council taking a legal charge on the property does not give them any rights as far as your tenancy is concerned which remains a contract between you and the Landlord/Owner.

G_M

There are two things going on here I think.

1) the Charge. This is registered on the Title of the property so that if/when the owner (or Executers/Beneficiaries etc) sells, the council gets their cash from the proceeds of the sale before the owner gets the remainder. You don't need to worry about this - indeed there is nothing you can do about it

2) the letter with your signature (if you sign) gives them an additional right (or rather, removes your rights) in the event of the council forcing a sale. There's no reason for you to agree to remove your rights.

This post will tell you more about what happens if the council (like a mortgage lender) repossesses:

* Repossession: what if a LL's mortgage lender repossesses the property?

marksoton

Jesus F Christ.

Has it really reached the point where councils will use subterfuge to coerce people to sign private tenancy rights away?!

I'm naive on occasion but this is something else.

tom9980

Trying it on, do not sign.

PasturesNew

Don't sign it. If the owner dies, it'll take them some time to get the estate etc sorted and so it shouldn't be impacted too much by you being there.

mrginge

Agreed. Don't sign it.

As an aside i'd like to point out to other posters on this thread that the OP's use of the term 'sitting tenant' can have multiple meanings.

keithgbucks

Thanks all for the sage and fairly unanimous advice thus far. Confirms what I hoped to be the position but with some other stresses currently in our lives this is something we could do without being "harassed" on.


My only worry is how a local authority (actually a County Council) can use this sort of approach if it's not backed up by law...


regards

AnnieO1234

What everyone else said. Name and shame the council! Xxx

wwl

Ask the council why on what basis they are stating that you "must" sign, and what would be the consequences if you don't.
If they can't give a sensible answer then "council trying to trick tenants in signing away their rights" might make a good story for the local press.

moneyistooshorttomention

marksoton wrote: »

Jesus F Christ.

Has it really reached the point where councils will use subterfuge to coerce people to sign private tenancy rights away?!

I'm naive on occasion but this is something else.

Well - I would have phrased it as "This sounds like a try-on by the Council" - but the sentiment is the same.

I cant see that OP and their tenancy has anything whatsoever to do with the Council. It is clear the Council would prefer to have the house vacant if they decided to have a go at the home-owner and have the house sold. However, I would say the tenant should have nothing to do with the Council whatsoever (and that includes signing this bit of paper they want signed).

Bloomin' cheek of the Council to suggest OP should be prepared to spend their money on legal advice for a suggestion that is basically nothing to do with them.

In OP's position - I would just tell the Council "The fact that you want a charge on my landladys house is nothing to do with me - I'm just the tenant." and keep repeating that phrase however many times necessary and refuse to sign/refuse to have anything to do with the Council beyond repeating that sentence at them any time they try contacting you.

If they start pushing and pushing at you - then go to the newspapers and have them print an article about it.