Terms & Conditions

[Anonymous]

Son and Daughter jointly purchased a property in 2002 but live seperately elsewhere. Mother, Father and Aunt move into the property from the purchase date and son confirms property was purchased to house the parents and aunt. CTB is awarded but no HB as they are never charged rent, the son and daughter pay the mortgage. In May 2006 both the son and daughter (who live seperately) financial circumstances change. They can no longer afford to the pay the mortgage, therefore begin to charge rent to the mother, father and aunt. HB and is refused as non commercial? Claimant has now appealed and I was looking for any advice and/or Commissioners Decisions similar to this case. Any help would be appreciated.

Thanks

[andyrichards]

From what I gather from other occasions when this has been discussed here, there is not alot here on which to base a decision of non-commerciality. If there has been a clear change of circumstances which means that the son daughter have to start charging rent, I would not have thought that made it non-commercial. Not in itself anyway.

[Anonymous]

Thanks for your reply. We also refused it as the landlords bought the property for the sole purpose of housing their parents and aunt. There was nothing in the tenancy agreement explainging what action would be taken for non payment of rent. Any CD on this type of case would be appreciated.

Thanks

[Kevin D]

This thread is very close to an earlier thread:

new.hbinfo.org.com/forum/viewtopic.php?t=8217

[quote:1111e16e2c]Payments towards mortgage payments can have the effect of being rent – see CH/2329/2003. [/quote:1111e16e2c]

Also, case law generally sides with the clmt where a L/L has had a change in circs and then proceeds to charge rent. Brings to mind [b:1111e16e2c]R v LB Sutton HBRB ex p Keegan (1992) 27 HLR 92[/b:1111e16e2c] (see notes in CPAG).

Regards

[Author]

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