Reply To: Pensioner renting from his daughter – contrived/commercial tenancy?



Have a tricky non-commercial appeal which would like to share. 

Customer is single, 35 ,has a SE business which is now dormant. No income, was living with mother.

Mother buys a property without mortgage, existing tenants moved out, son moves in after borrowing rent in advance and deposit from father ( mother and father are divorced ).

Rent is slightly above LHA level and makes nil income claim saying that mother supporting him. Assessment Team turned down claim as non commercial, landlord effectively supporting tenant's living expenses. 

Son has now appealed stating change of circumstances. He has now been awarded WTC as SE , SE business live again- evidence of one off job which he got paid £95.00, Letter from Mum saying stopped financially supporting him. 

Our chap states that his rent is up to date. Father has now paid money to him to pay rent with, he is living from around £50.00 a week WTC.  Supplied bank statements . Father expects the money back eventually- so father is effectively paying the rent to his ex-partner via their son's tenancy. 

We have permission to write to Mother / Landlord. I am going to ask for further confirmation about the rent that is paid to check against bank statements. and am going to ask about smoke alarms, gas & electric compliance.

If all the latter is in order, I would pay from Monday following mother stopped supporting tenant. I find it hard to argue non-commericiality if rent is being paid and mother is fulfilling all her obligations as landlord. Would want the claim checked in future just to confirm that rent is still being paid. 

Other colleagues still unconvinced that this is commercial. 

Comments most welcome- thank you.