Tenancy Agreement For Parents

jaws44476

I own the property that my parents live in and as such seem to have to pay for landlords insurance even though I do not charge them any rent and for all intents and purposes is their property other than the fact that my name is on the documents etc.
My query relates to tenancy agreement. I realise I should have sorted this before now but just wondered if a normal shorthold tenancy agreement with all values marked as £0 would be sufficient? I've had a little panic that should I need to claim the insurers may not pay out without proof of an agreement.
I would also value if anyone knows if there is any other way to obtain buildings insurance in this situation without requiring the landlords cover (I'm guessing not).
Thanks in advance

seven-day-weekend

You also should have a gas safety certificate if there is a gas supply in the house.

You are their landlord and must abide by landlords' rules.

paddy's_mum

jaws44476 wrote: »

for all intents and purposes is their property

Crikey - that view is highly naive!

You are, in fact, a landlord.

G_M

Who pays for repairs and maintenance?

Re the tenancy agreement, this can be verbal if you wish - there's no requirement for a written one, though it can often be useful simply to clarify who is responsible for what.

However as 7-day-weekend says, landlords have other legal obligations ( see here ).

However if you are really receiving no rent, your parents are probobly 'Excluded Occupiers' with a Licence, rather than tenants with a tenancy agreement.

Bear in mind though that 'rent' does not just mean cash paid to you:

If there is an agreement (written or verbal) that in return for living in your property they will
* improve it at their own cost
* pay your mortgage
* provide you with services that have a quantifiable financial value,

then that could constitute 'rent'.

jaws44476

seven-day-weekend: Thanks, yes I have all required safety certs as required.
G_M: Thanks for that, I was unsure whether tenancy agreement stands if just verbal. I cover all maintenance/repairs/improvements and the sort so I don't have to worry about chargeable gains or other forms of tax. I always thought excluded occupancy only referred to shared accommodation with tenant. I'll look into that.

theartfullodger

G_M's probably right about "excluded occupier" - see
http://england.shelter.org.uk/get_advice/downloads_and_tools/tenancy_checker

It cannot be (may not be, legally impossible to be..) an AST if genuinely no rent.

Is there a mortgage? If so, letting relos live there may mean you could be repossessed.

I'd never provide accommodation to relatives: I'd help them find some other landlord, maybe give them a bung, but no live in one of my properties...

jaws44476

Thanks for the link theartfullodger - no mortgage on property. I just want to make sure that if I should need to claim on insurance for anything they can't deny any payout due to me having the wrong paperwork.

G_M

jaws44476 wrote: »

....I just want to make sure that if I should need to claim on insurance for anything they can't deny any payout due to me having the wrong paperwork.

For this, there is no better source of information than the wording in your policy document!

An alternative is to ask the insurer, and get a written reply confirming that the cover is valid, given the specific circumstances.

booksurr

jaws44476 wrote: »

Thanks for the link theartfullodger - no mortgage on property. I just want to make sure that if I should need to claim on insurance for anything they can't deny any payout due to me having the wrong paperwork.

did your parents give you any money at all towards the purchase cost of the property you now own but which they occupy?

if they did, then their (not your) situation just got a lot more complex in respect of tax as the Pre Owned Asset Tax rules come into play where no rent is being paid