Relation Landlord dies. (Complicated)

mikeypr1212

I was paying rent to a relation who has now sadly passed away. I am on housing benefit. 

The complicated bit is, I am now being left half the property. 

I have not taken possession yet, as probate is in progress. 

Not sure if I still should be paying rent into the estate. 

What do I need to do? I have saved the rent that has been given to me since the death. But is I do not own half the property yet, I have no idea where to start. And not even sure the benefits agency will know correctly, if I need to pay it back. 

Thank you for any help. 

ElephantBoy57

mikeypr1212 said:

I was paying rent to a relation who has now sadly passed away. I am on housing benefit. 

The complicated bit is, I am now being left half the property. 

I have not taken possession yet, as probate is in progress. 

Not sure if I still should be paying rent into the estate. 

You may need to pay rent to the other person that owns 50% of the house. If you own 50% share and its value is above £16k, you may not get housing benefit. You need to think about this.

Not sure what the rules are these days.

blue_max_3

I think you should pay the rent to the estate. You don't own the property, the estate does. 

mikeypr1212

Yes. That is what I was thinking. Pay it to the estate. Until probate is granted. 

Gets a little more complicated at the house may not be sold, and I will be able to stay in  the (flat)  But I am guessing that if I have the half share in the house (which the flat is in I will have Over £16,000 In benefits and be over the threshold. I will loose my housing benefit. Even though I won’t have any money. 

I can understand and accept the loss of rent, as I will not need to pay any. But when do I inform the benefits agency? And when will they stop rent? Will it be once the property is transferred over or as soon as probate is granted. As half is still going into the estate and will be decided by the other beneficiaries. 

xylophone

You were making regular payments to the bank account of the deceased?
It is quite possible that these would still have been accepted even though the executor would have advised  death of account owner.
https://www.hsbc.uk/help/life-events/bereavement/help-and-support/what-happens-when-we-are-notified-of-death-of-a-customer/
You could check with the executor. He may prefer that you hold on to the arrears until he has opened an exor account.

With regard to the ownership of the property, who will be the other owner?

Will he/she also live in the property?

How will you own the property (joint tenants /tenants in common)?

If the other owner does not live in the property, will he expect you to pay him rent?

 

Comms69

xylophone said:

You were making regular payments to the bank account of the deceased?
It is quite possible that these would still have been accepted even though the executor would have advised  death of account owner.
https://www.hsbc.uk/help/life-events/bereavement/help-and-support/what-happens-when-we-are-notified-of-death-of-a-customer/
You could check with the executor. He may prefer that you hold on to the arrears until he has opened an exor account.

With regard to the ownership of the property, who will be the other owner?

Will he/she also live in the property?

How will you own the property (joint tenants /tenants in common)?

If the other owner does not live in the property, will he expect you to pay him rent?

 

Might expect it, but would have no right to any rent.

blue_max_3

mikeypr1212 said:

Yes. That is what I was thinking. Pay it to the estate. Until probate is granted. 

Gets a little more complicated at the house may not be sold, and I will be able to stay in  the (flat)  But I am guessing that if I have the half share in the house (which the flat is in I will have Over £16,000 In benefits and be over the threshold. I will loose my housing benefit. Even though I won’t have any money. 

I can understand and accept the loss of rent, as I will not need to pay any. But when do I inform the benefits agency? And when will they stop rent? Will it be once the property is transferred over or as soon as probate is granted. As half is still going into the estate and will be decided by the other beneficiaries. 

I think that once probate was agreed. Could the other parties buy you out? Obviously your needs would need to be assessed after the probate was granted. I can imagine it's very unsettling.

theartfullodger

You pay the estate of whoever was named as landlord on your tenancy agreement.  You do not have to own a place to be Landlord

xylophone

This is a little confusing.

The deceased owned a property which had been converted into flats?
Is there a freehold/leasehold situation?

mikeypr1212

Yes, it’s worrying. Not sure about how the place will be split. And if it even makes a difference. 

At the moment it’s will be a 50/50 split. But not agreed on the way it will be shared. Don’t ever know the difference between the options. 

He will not be living in the property. But will rent out the other flat. 

Thank you for all your help. 

blue_max_3

mikeypr1212 said:

Yes, it’s worrying. Not sure about how the place will be split. And if it even makes a difference. 

At the moment it’s will be a 50/50 split. But not agreed on the way it will be shared. Don’t ever know the difference between the options. 

He will not be living in the property. But will rent out the other flat. 

Thank you for all your help. 

Ah, so there are two separate flats? One of which you can sell?