Non-commercial, excess capital or both??

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  • #39433
    Anonymous
    Guest

    Fresh eyes needed please!

    MR & MRS get £49k from the sale of a former residence following MR’s bankruptcy. MRS uses this as deposit on the next property they move into. The legal owner is somebody else who is the landlord and to whom MR and MRS have an agreement to pay £900 pcm rent. Although the Land registry cites the landlord as the Proprietor, a restriction has been placed on the land registry by MRS that no disposition by the owner is to be registered without her written consent. MR states in IUC that they lent some money to the landlord and in return he said they could be the tenants. But because they didn’t entirely trust him to give the money back, they had a restriction put in place.

    MR pays £900 rent and his son as a favour makes up the rest to pay £2000 per month direct to the mortgage company. This continues for about 5 years, the entire time, HB is awarded on the property. Then in April 2010 this charge is removed by MRS and the same month the property is sold to the brother of the landlord. On the day following the sale, MRS gets £25k paid into her account. The same day a draft for £24k is paid to the new owner of the property in which Mr and MRS move remain.
    Almost all this information has come to light as a result of a fraud investigation. Now they have asked that we use their findings to make a decision on the claim.
    I’m inclined to say that yes, they’re making payments of rent but that the agreement can’t be deemed commercial. But I also feel that there may some collusion between owner and tenant as well as other parties and that the tenancy has been created purely to take advantage of the scheme. OR is this all irrelevant seeing as the couple effectively have assets in excess of £16,000??

    #112135
    Chris Robbins
    Participant

    Lu, I don’t quite folow your post.
    You say the tenant (MR) pays £900.00 rent. What is this payment from the tenant’s son to make up the £2000 mortgage? Where does this come in? Are you saying the true charge to MR is £2000 per month?

    #112148
    Anonymous
    Guest

    Sorry, I know there are so many holes. The rent charged, and the amount the tenant pays is £900 pcm. But he says his son makes up the rest to meet the mortgage payments of £2000. We’ve been unable to establish who holds the mortgage and why the son makes up this difference and whether or not meeting this payment is actually the condition under which the tenant occupies the property. There is a language barrier which has meant much of what MR says either isn’t consistent, or doesn’t make sense or is recorded on the IUC transcipt as “inaudible”.

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