We have a claim from an elderly gentleman who has been living at the property since 2002 (paying the ground rent of £400 per annum) rent free.
The landlord is his daughter, who does not rent out any other properties and has always housed her father in the properties she owned. In April 2006 the daughter takes early retirement and starts charging a rental liability in respect of the property.
I have questioned the reasoning for early retirement but the reasoning has been very limited it appears that she chose to take early retirement. The property is mortgage free and from April 2006 a rental liability of £100.00 per week was imposed.
I have paid cases in the past where someone has lived in a property rent-free until the landlord has had a change in circumstance however in this case I feel that if we were to pay HB we would be assisting in paying a Pension to the landlord.
However, all the info provided so far indicates that the tenancy agreement is commercial. Has anybody come across similar cases and what did you do in your case?