Is this commercial?

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  • #38143
    fayemc
    Participant

    We have received a new application from a couple who have been resident in the property since 1987. The couple previously owned the property but sold it to their son in 2004 because they could not afford the mortgage repayments.

    The son was also resident at the time and remained in the property and was paying the mortgage. However, in February 2011 the son has vacated the property and has moved into a property that he rents for himself and his family.

    The son has now started charging his parents rent from February 2011, as he is unable to pay the mortgage and the rent on his own property.

    The rent on the property is low compared to other properties of this size in the area.

    The claimant has said that they would have to move out of the property if the rent is not paid.

    I do not believe that this tenancy is commercial. However, before I can make a decision I will need to gether further information. Can anyone think of any questions that I can ask to allow a decision to be made.

    Thank you

    #107433
    John Boxall
    Participant

    It seems to me that

    1. The son has a reason for needing to charge his parents rent – in that he has moved with his family to a new home
    2. He’s said that they cant stay if they dont pay

    So on the face of it it’s commercial

    However it might be worth looking at the papers relating to the sale of the property to the son to see if the parents retained any right to occupy, or any other interest in the property.

    Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery. The blossom is blighted, the leaf is withered, the god of day goes down upon the dreary scene, and—and in short you are for ever floored.

    Wilkins Micawber, Ch12 David Copperfield

    #107437
    michaelh
    Participant

    I’d agree with John fully on this one, does not seem to be any grounds for refusal under non-commercial

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