buying parents rented house,need some ideas

fishing-girl

my parents in law currently live in a house owned by a private landlord, (since 1971,so sitting tennant)
the next door nieghbour recently passed away and the land lord has put the house on the market.
this has given me the idea that i could buy my in-laws house(same landlord that is selling next door) if the landlord is willing to sell, continuing with the rent arrangements as they are as i would need to pay a mortgage.


my questions are
my in-laws get help towards the rent and council tax, would that be affected by me (the landlord) being a family member,

how would being a landlord affect my tax status.

am i entitled to buy it at a reduced rate as it has sitting tennants.


it would be great if i could buy it as they are both elderly and i would like to put in a downstairs loo for them (landlord wont),
also does my husband have any claims to the tennancy as their son with current landlord.

sorry if this all seems a bit vague but the idea has only occured,i dont want to falsely raise my inlaws hopes.
thanks for any help or ideas.:beer:

TTMCMschine

Yes, of course you're allowed to buy it at a discount because it has sitting tennants. Didn't you know, its the law.

Even though you want to buy it & you & your in laws will benefit from it (supposedly), & the landlord will lose out, he has got to give you a 99% discount because your in laws have lived in the same house on benefits for so long.

Thats why all houses with sitting tennants are snapped up by their in laws.

Its a bargain. Sod the landlord.

clutton_2

""my questions are
my in-laws get help towards the rent and council tax, would that be affected by me (the landlord) being a family member""

yes it would - councils are notoriously reluctant to pay housing benefit if the landlord is a close family member - you must research this part of the equation very thoroughly before going ahead.

busydaffodil1

I'm sorry about the sarcastic comment higher up the thread fishing girl. There seems to be a few people on MSE lately that are not behaving appropriately.
It doesnt make them look good.......just makes them look silly.

fishing-girl wrote: »

my in-laws get help towards the rent and council tax, would that be affected by me (the landlord) being a family member,
Probably be unable to claim but a call to your local Council office for general advice on Council Tax & Housing Benefit, would give you the correct info.

how would being a landlord affect my tax status.
You would probably have to become self employed and declare your income/expenses. You will be taxed on profit. I'm not 100% on this so best to phone local tax office for correct advice.

am i entitled to buy it at a reduced rate as it has sitting tennants.
No. The discount scheme usually applies to Council Homes only.

it would be great if i could buy it as they are both elderly and i would like to put in a downstairs loo for them (landlord wont),
Social Services or age concern might be of assistance to make adaptions maybe?

also does my husband have any claims to the tennancy as their son with current landlord.
Wouldnt have thought so.

tbs624

fishing-girl wrote: »

my parents in law currently live in a house owned by a private landlord, (since 1971,so sitting tennant)
the next door nieghbour recently passed away and the land lord has put the house on the market.
this has given me the idea that i could buy my in-laws house(same landlord that is selling next door) if the landlord is willing to sell, continuing with the rent arrangements as they are.


my questions are
my in-laws get help towards the rent and council tax, would that be affected by me (the landlord) being a family member

If you also lived there then yes, otherwise maybe not but see here for clarification:
http://england.shelter.org.uk/advice/advice-7386.cfm

fishing-girl wrote: »

how would being a landlord affect my tax status.

You would need to pay tax on the profit from your rental income - have a look at the HMRC website under SA105 Land & Property Pages for more info. Under L&T law you'd be responsible for maintaining the property and you'd also need to comply with current safety regulations including gas appliance services & safety certification.

fishing-girl wrote: »

am i entitled to buy it at a reduced rate as it has sitting tennants.

No, you are not *entitled* but a purchaser buying a property with sitting tenants will usually pay a lower price than for the same property with vacant possession.However, the LL may be happy to wait to sell it at a later date when it does have vacant possession and there may have been a further increase in market value.

fishing-girl wrote: »

it would be great if i could buy it as they are both elderly and i would like to put in a downstairs loo for them (landlord wont),

I'm assuming because of the date that the Tenancy is a Regulated one - ie, if the LL is not resident and the Tenancy began before 15 Jan 1989 it falls under the Rent Act 1977.Anyone with a Regulated Tenancy is in a much stronger position than those on an AST -a fair rent can be registered (by either LL or Tenant) and may only be increased every two years, and you have stronger rights against eviction.However, the LL can apply to increase the rent if he makes substantial alterations or improvements to the property.

fishing-girl wrote: »

also does my husband have any claims to the tennancy as their son with current landlord.

Assuming that this is a Regulated Tenancy, my understanding is that succession is only possible where one of the following applies:

• the LL agrees to it
• The Tenancy Agreement allows it
• it is sought by a family member in the event of the death of the original tenant(s)

AFAIAA for the third one your brother would have to have lived at the property for the two years prior to attempting succession.

You really do need legal advice for the best way forward with this one so my suggestion would be to make an appointment either with someone at the local CAB or ask for a short Fixed Fee Interview with a local solicitor ( £30-50) to discuss this, taking a copy of the original agreement/rent books or any letters with you. Make sure you ask for someone who has experience of dealing with Regulated Tenancies.

tbs624

busydaffodil1 wrote: »

I'm sorry about the sarcastic comment higher up the thread fishing girl. There seems to be a few people on MSE lately that are not behaving appropriately.
It doesnt make them look good.......just makes them look silly.

I agree with you there BD1

busydaffodil1 wrote: »

You would probably have to become self employed and declare your income/expenses. You will be taxed on profit. I'm not 100% on this so best to phone local tax office for correct advice.

You don't have to become self-employed to act as an LL but you do have to declare the income on your tax return - it's all on the HMRC website.

busydaffodil1 wrote: »

The discount scheme usually applies to Council Homes only.

Absolutely right.

busydaffodil1 wrote: »

Social Services or age concern might be of assistance to make adaptions maybe?

Your point about Social Services is a useful one - they may not be able to arrange for another lav to be fitted but they could probably arrange for a commode and support from a care worker if needed.

tbs624

margaretclare wrote: »

Just a small point. I don't know how 'elderly' the OP's elderly in-laws are, but there is a huge difference between the convenience of having a downstairs loo, which most modern houses have as standard, and the stage of life when SS involvement is necessary and a commode and care worker!

But they can provide a short-term alternative if you have a unhelpful LL and you don't have the financial means to do anything about it yourself: its about looking at all possible solutions, and my post included the rider "if needed".

Unfortunately most properties that are tenanted under a Regulated Tenancy are very unlikely to have much in common with what you would view as standard provision in modern housing. You used the word "convenience" rather than "necessity" which probably sums it up unless you do have mobility difficulties.

Rabiddog_2

Under the stairs is a great place to start (downstairs loo).
Theres just something odd about using a second-hand commode (great word tho).
Outside loos.. now theres something I think will make a comeback.. what with health and hygiene , obviously it will have a new century look about it ,
probably glass walls and designer interior, and of course will be centrally heated,
unlike our old one next to the Coal Shed
(also due a comeback, great for people with asthma).
Your income as a landlord has no bearing on your employment status, its just more money coming in thru the door

fishing-girl

thanks for all the replies,
there is an old coal house part of the back kitchen which would be perfect to put a loo in , just needs the door moving from an external to an internal door.
my in-laws manage at present, i am just looking towards the future.

Benefits_Blagger

what i would do, is buy the house at a huge discount because of the elderly sitting tenants. wait till next winter and turn the heating off, once elderly relatives have froze to death you can flog on the property for a huge profit and will have made a killing! (literally)

fishing-girl

thanks blagger,
that made my husband laugh, he thinks its a great idea,(his parents):beer: