Help with ideas for dealing with legal action for ground rent

littly_kitty

Thanks for all the help. It makes things a lot clearer.
About the Landlord thing, I was wrong about that. Although his daughter is living in the house, she is living there rent free and there is no mortgage on the property.

lisyloo

The link I put up in post #4 says he is subject to all landlord/tenant law and that was specifically case where no rent was paid.


For example he cannot skip life and death carbon monoxide checks simply because she pays no rent !!



https://www.thisismoney.co.uk/money/buytolet/article-4487684/Can-let-property-family-member-no-rent.html

littly_kitty

Thanks! I will have to tell him to look into that. How would paying landlord taxes work if no rent is paid? (I know he pays all the regular household taxes on the property such as council tax).
Also what type of person would he have to speak to to make sure he is doing everything correctly. Would it be a lawyer or another type of person?

I know his daughter is the apple of his eye, so he probably will be doing all the safety checks, but I will tell him to double check.

lisyloo

How would paying landlord taxes work if no rent is paid?

He might not have to pay income tax, but he would still be subject to Capital Gains Tax on any capital gains when he sells the property, so there is more than one tax.

Also what type of person would he have to speak to to make sure he is doing everything correctly. Would it be a lawyer or another type of person?

Most people running a business research this for themsleves.
For example we have a Ltd company and we work out the best way to distribute the profits (pension, dividends, income) ourselves.
We do book keeping ourselves but employ a qualified accountant to do the accounting once a year.



In general most landlords do a lot of the work of running a business themselves and only get people in - accountants, electricians, gas engineers when specific skills or qualifications are required.


If you need to pay someone for eveything then the business is likely to make a loss.

I know his daughter is the apple of his eye, so he probably will be doing all the safety checks, but I will tell him to double check.

The checks for landlords are a higher standard than for your own family.

hazyjo

littly_kitty wrote: »

My elderly uncle...

...He's quite old and doesn't live in the property...

littly_kitty wrote: »

...I think he was considering applying (or may have already applied) for another mortgage on a different property.

Just how old is he? Can't be that 'elderly' if he's applying for a mortgage!

littly_kitty

He is 70. Although I might be wrong about him applying for the mortgage.

Thanks for all the suggestions that everybody has give, I appreciate them.