Denis Sullivan. Posted October 25, 2016 Report Share Posted October 25, 2016 Hello forum. I need some advice, I own a second property and I let relatives stay there rent free, they are saving for deposit on a house. They pay all the bills council tax etc, I will downsize next year and move in,when they will enough to buy there own home. because I won't accept any rent and we don't have any tenancy agreement, must I still apply for landlord licence and register??? its all a bit confusing,your advice is much appreciated. Link to comment Share on other sites More sharing options...
Richlist Posted October 25, 2016 Report Share Posted October 25, 2016 If I were in your shoes I'd request a copy of the rules and regs from your local council that apply to landlord licencing and registration. Link to comment Share on other sites More sharing options...
Melboy Posted October 26, 2016 Report Share Posted October 26, 2016 Check your property insurance as well. Any infringements will result in non payment in the event of a claim. Do you actually have a landlord registration scheme in your area? A lot of Councils don't, including mine. I remember reading an article a few years back that although you may not be receiving rental payments the governing rules still apply regarding tenant/landlord law. Link to comment Share on other sites More sharing options...
landlord insurance Posted October 26, 2016 Report Share Posted October 26, 2016 You don't have to take rent to have a lease agreement. This lease agreement will simply say that the tenant agrees to pay you £0 per month. I've seen this many times where landlords let to family/friends. It makes it official without the rent payments making them able to obtain landlord insurance in the same way as everyone else. Link to comment Share on other sites More sharing options...
Richlist Posted October 26, 2016 Report Share Posted October 26, 2016 But........AIUI....The law says that to make it a normal contract there has to be a 'consideration' i.e. a payment. No rent payment means it's not an AST. That might well muddy the water. You need a legal opinion from someone who knows the rules. Unlikely to find that on here. Link to comment Share on other sites More sharing options...
landlord insurance Posted October 26, 2016 Report Share Posted October 26, 2016 I'm sure I've come across rent free lease agreements, however I cannot disagree with what seems to be a good arguement - maybe this could be solved with a £1p/m payment??? I do agree that a qualified legal opinion should be the only advice you take. Link to comment Share on other sites More sharing options...
Melboy Posted October 26, 2016 Report Share Posted October 26, 2016 I think one of the stumbling blocks here is the fact there is no AST and for me, no matter who I was letting the property to I would draw up an AST contract and show the rental payments as being £0. Verbal contracts may be considered OK for some........ but not for me. Link to comment Share on other sites More sharing options...
Grampa Posted October 27, 2016 Report Share Posted October 27, 2016 On 10/26/2016 at 10:01 AM, Richlist said: But........AIUI....The law says that to make it a normal contract there has to be a 'consideration' i.e. a payment. No rent payment means it's not an AST. That might well muddy the water. You need a legal opinion from someone who knows the rules. Unlikely to find that on here. My thoughts exactly. Link to comment Share on other sites More sharing options...
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