Terms & Conditions

[petedavies]

Secure tenant dies leaving her two resident children aged 12 & 16.

16 y.o. succeeds but holds an equitable tenancy with the legal tenancy being devolved to a trust with her as a beneficiary until she is 18 when she will become the legal tenant.

The trustee acts as a guarantor for rent.

I think that (1) the liability for rent arises from the equitable interest and that (2) the 16y.o. is therefore liable for rent to (3) the LL (as oppossed to the trustee)

There are other issues (residence, Children Act etc) which I am OK with but not overly confident on this above point.

Any thoughts?

[markp]

Sorry to seem dim, but in what way is the 16 year old the beneficiary of the trust seeing that she was the late tenant’s daughter?

In my view HB is payable as the girl in question will become the secure(?) tenant at the age of 18 as the trust issue is a red herring.

Do I know what I'm doing? The jury's out on that........................

[petedavies]

Basically it allows for the tenancy to continue unbroken bar the succession since the trustees can possess a legal estate and protects her legal interest.

I have no major doubts about entitlement itself but…Does the rent fall due by virtue of her equitable interest to the LL or by virtue of the trustees legal interest?

If the latter is the case then her rental liability would be to the trust although she would be protected from the effects of Reg.9.

The question is directed more at how the claim should be treated than whether an entitlement exists.

[Anonymous]

My turn to seem dim…in what way would she be protected from a Reg 9 decision?

[edit] …although, having now re-read the regulation, perhaps you’re right

[Author]

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