‘Renting’ to family

pac-man

ThisIsWeird said:

Pac-man, have you given us an idea of the timescale here?

1) how long has your friend owned their mortgaged home?

2) when did the relative move in?

3) when was this 'resident' declared on the mortgage - from the very start?

4) is your friend also down as a resident owner on the mortgage?

5) when did your friend get married to their partner?

1] 2 -3 years
2) From the start
3) from the start
4) I think so, but not sure
5) less than a year ago.

I have suggested and friend has agreed it’s a good idea to ask for tax accountant advice in the new year. Once they know where they stand hopefully ‘sensible’ rather than ‘knee jerk’ decisions can be made. My tax friend said they could phone HMRC anonymously and get some advice also.

Thanks all. I think I’m done here but I will check in again to see if there are further updates but I am reassured that friend will now engage with formal advice.

Jude57

Just as worrying is that OP's friend doesn't seem to understand how marital property works. While OP's friend may only have been legally married for a short time, the comment that said friend has been a father to the children from the wife's previous relationship indicates that the relationship has lasted for a considerable time before marriage. That being so, the rented property could well be considered by a judge as an asset of the marriage, as indeed could the wife's house if they do separate. If the judge agrees that the relationship before marriage counts, then it's irrelevant whose name is on the property deeds because it all goes into the same pot, along with pensions, any other assets and debts. And from what OP says, the wife is unlikely to agree to a contrived separation so I'd suggest she might be unwilling to simply walk away from the marriage without establishing her, and OP's friend's, rights and liabilities. What a tangled web, indeed.

ThisIsWeird

pac-man said:

ThisIsWeird said:

Pac-man, have you given us an idea of the timescale here?

1) how long has your friend owned their mortgaged home?

2) when did the relative move in?

3) when was this 'resident' declared on the mortgage - from the very start?

4) is your friend also down as a resident owner on the mortgage?

5) when did your friend get married to their partner?

1] 2 -3 years
2) From the start
3) from the start
4) I think so, but not sure
5) less than a year ago.

I have suggested and friend has agreed it’s a good idea to ask for tax accountant advice in the new year. Once they know where they stand hopefully ‘sensible’ rather than ‘knee jerk’ decisions can be made. My tax friend said they could phone HMRC anonymously and get some advice also.

Thanks all. I think I’m done here but I will check in again to see if there are further updates but I am reassured that friend will now engage with formal advice.

I couldn't possibly suggest that your friend had his house as his main residence up until the point he got married less than one year ago, still effectively sharing it with his elderly relative up until this point, even tho' he was obviously away from his home for various periods.
But, if he did, it would mean he'd only need to sort out - correct - the new situation for a matter of months.
I don't suppose he was included on the Council Tax for his own home for even part of that time?