Grown up children are exclusive occupants of husband's house rent free

Shookup

I have just married my husband and he now lives with me in my house.  His grown up children now occupy his house exclusively rent free, his daughter also has her boyfriend living with her. This is to enable them to save up for a deposit on a house of their own, rather than pay out rent to private landlords.
They have informed the council tax people that they live there and that my husband has moved out. 
What is the situation for my husband legally? 
His house insurers have told him they will no longer insure his house as it is not his main residence.  He still owns the property and hasn't transferred ownership to them but he doesn't live there anymore.
Does he count as a landlord?  Does he have to get landlords insurance or does he get second home insurance?
If he then is considered a landlord, does he have to get gas safety checks, PAP checks, fire alarms, electricity certificates EPC etc if he is not collecting rent off them?  

Shookup

Doing more research, I wonder if he should get a 'licence to occupy' arrangement?

HobgoblinBT

We have a similar situation with a house held in trust for my mentally handicapped brother in law.  He is now in a residential group home so the house was empty.

  Our son rents the house with an assured shore tenancy agreement at around 50% of the commercial rent.  Son as occupier is responsible for council tax and utilities, we as landlords for usual landlord obligations such as electrical and gas safety certificates, maintenance and insurance.  We explained to Churchill Insurance that the property was occupied by our son and because he was related to us as landlords that they would provide cover on a domestic policy rather than landlord insurance.  

If you and your husband rent the house to your husband’s children you can always save the money and present to them when they come to a sensible life event eg buying their own first home.

theartfullodger

Speak to BTL insurance brokers with complete honesty.

In your shoes I'd immediately take out landlord insurance - currently you're hugely exposed if eg a fire at property, people 'orribly hurt, possibly no insurance payout.

lincroft1710

Your husband is now a landlord, his children are his tenants, with tenant's rights. The fact no rent is passing is immaterial.

Tigsteroonie

Can the grown up children not get their own insurance? Presumably in addition to Council Tax, they are paying for their utilities (or are they getting a completely free ride?).

user1977

Tigsteroonie said:

Can the grown up children not get their own insurance?

Not buildings insurance, because they don't have an insurable interest (unless there's actually some odd arrangement making them fully responsible for repairs to the property)

There are insurance options for such situations which are cheaper than standard landlord policies - try LV=.

maisie_cat

lincroft1710 said:

Your husband is now a landlord, his children are his tenants, with tenant's rights. The fact no rent is passing is immaterial.

Aren't people living rent free one of the excluded occupier categories?

Shookup

We have only just started the arrangement, they are going to pay for bills, we weren't sure what to do about council tax

Slithery

lincroft1710 said:

Your husband is now a landlord, his children are his tenants, with tenant's rights. The fact no rent is passing is immaterial.

I thought that for a legal contract to be formed there had to be some sort of payment - hence why peppercorn rent is so common even if it is never claimed. Surely the children are just licensed occupiers if no consideration is changing hands?

lincroft1710

maisie_cat said:

lincroft1710 said:

Your husband is now a landlord, his children are his tenants, with tenant's rights. The fact no rent is passing is immaterial.

Aren't people living rent free one of the excluded occupier categories?

I always thought excluded occupiers were people who shared the occupation with the landlord/owner