Is he a landlord?

[Deleted User]

Not if she didn't keep to the agreement and her brother needed to sell the place.

silvercar

My OH's father has just died without having made a will and under Scottish law his house is now jointly owned by my OH and his sister.

This is why everyone should write a will.

If a will had been written, the benefactors could agree to alter it within 2 years of death and change the beneficiaries to suit their situation.

It seems to me that the sister doesn't want to inherit as (a) she can't afford to pay rent to brother (b) can't afford to maintain the property (c) can't afford the outgoings if living their alone (d) wouldn't want to be paid off for her share of the property as that would effect benefits.

One solution may be for sister to live there and take a lodger to pay some rent which could be used to pay off brother and provide some money for maintenance.

noh

silvercar wrote: »

This is why everyone should write a will.

If a will had been written, the benefactors could agree to alter it within 2 years of death and change the beneficiaries to suit their situation.................

.

A Deed of Variation can be used whether or not a will has been made.

See below for UK.
http://www.legislation.gov.uk/ukpga/1984/51/section/142

xylophone

If the sister is on means tested benefits and agreed to a DoV so that she could keep those benefits, a Deprivation of Capital situation would arise.

http://www.dootsons.co.uk/wp-content/uploads/2015/01/Dootsons-Deeds-of-Variation-sr.pdf



However, if a beneficiary is receiving means tested benefits, a Deed
of Variation cannot be used to redirect his entitlement from the deceased’s
estate to prevent benefits being disallowed because under these
circumstances it will be seen as a gift from the beneficiary.

bris

It's a terrible idea and will end in tears and fall outs.


The sister may lose more than just the housing benefit when the new asset gets taken into consideration.


Why would he also agree to pay half the council tax? Either way living on benefits and not getting housing benefit will see the rent going unpaid for a long time, with the OH being taken for a ride simply because benefits will not cover living expenses and rent so who do you think will get left out?

skintandfat

As it stands your sister has inherited an asset- to hide the asset is unlawful
She won't get housing benefit as she partly owns a house.


You can't own property and rent a house with housing benefit support.
Had your dad left the house to you it would still be hard to rent to her as she is a relation.


Take legal advice but unless she can buy you out she has no option.


This could go horribly wrong

Proxima_Centauri

It does sound like a rather complicated arrangement!

Kynthia

I'm not sure you can be a landlord if the person living in the property is a joint owner. Whether the money he receives is still legally property income for tax purposes would need to be checked with the HMRC.

As others have said this seems like an arrangement that could be more complicated and troublesome than you all realise.

Usually a resident of a property pays the council tax. What type of maintenance costs will be split and she'll be the one causing wear and tear, so is it only the big things like roof repairs and new windows or every boiler breakdown and gutter cleaning? Plus your husband won't be able to evict his sister as she is an owner. If she pats nothing or he needs the money in the property his only option will be to offer to buy her out or force a sale through the courts, which will be expensive and time consuming.

jbainbridge

cjdavies wrote: »

It's a terrible idea to start with and in future a mess.

Sell house and then 50/50.

Housing benefit will stop as you said, how is she going to pay the rent?

Why half countil tax?

theartfullodger wrote: »

Terrible idea, flog it

I'll echo that. Terrible idea ... it will only lead to future falling out. Sell it and split the money is the only sensible option.

stevegrass777

It's a bad idea,you will end up falling out with her,either buy her out and let it out or sell it and invest your half knocking your mortgage down.
Don't fall for that bad idea.