Is or Isn’t It Rent

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    Hi, I’ve come across a slightly unusual situation – well not one we’ve had before.

    A person have moved into a sheltered scheme (1 bed flat) and will be purchasing this flat, however he can’t purchase the flat until his current home is sold. Until the current flat is sold he is renting the flat in the sheltered scheme (£350 per week).

    He has been provided with an assured short-hold tenancy agreement, that all looks ok, only real thing is the tenancy will be for 6 months or until such point he purchases the flat.

    We have a couple of questions outstanding with the landlord, these being:
    – Do the rent payments count towards the purchase of the flat.
    – Is purchase of the property a condition of occupation / tenancy.

    Don’t know the answer to the above, but presuming it comes back the payments are just rent and don’t count towards the purchase, how would people treat this.

    – Would you say it is rent and eligible until purchased.
    – Would a condition such as must purchase make a difference.

    Ta for any input people can put in.


    Cannot see a problem on the face of it but:

    If the rent counts towards the purchase I do not think it is not rent at all.

    I am not convinced a condition to purchase would be enforeceable as part of a tenancy agreement. If such an condition exists it may warrant closer examination.

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