Reply To: Liable or not?

Alistair Costelloe

Is the reason they’ve not signed the agreement because they do not accept the new rent, or is it connected to a lack of mental capacity?

If they have capacity and have declined to sign, the rental liability would be the existing liability and not the new one, hence the lower rate. The provider would need to formalise the new rent through a Section 13 notice or a formal rent increase notification pursuant to whatever terms exist in the contract they already had.

If the agreements are unsigned and the tenant lacks capacity, a liability to pay rent would likely still exist under S7 of the MCA 2005, and the liability to make reasonable payment for neccesary goods and services. This is further reinforced by the Wychavon v EM case from 2012. A statement of best interests from a healthcare professional confirming that it is in the person’s interests to occupy these premises would demonstrate that it is neccesary, and you have already determined an amount that is reasonable.