part owner occ or not

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    I have a recon to do and am torn between how to treat this case- as she wants to go to appeal
    Mother comes back from Zimbabwe – goes to live with son for 7 months –
    this cause friction with sons wife – so mother from the £26000.00 she managed to bring back with her – gives the son £17200.00 to put on a deposit on a flat to purchase and the son takers out a morgage /bond with B.Society.
    Son lets mother live in flat for 1st 3 months as rent free – while she furnishes it with the remaining £8000.00.
    From march 06 he is charging her £900.00pcm rent.

    My dilema – we have done 1st refusal on non-commercial – she has asked for reconsideration on this –

    I have written out for loads of info regarding the morgage and await land registry back

    My dilema is – if she gave the son the money purley to use a a depoisit on a flat for her to live in – does she become still ‘part owner occupier’ or can I treat it as deprivation of capital – I think we are on dodgy ground using reg 7 – as the son has not done anythin’unlawful’
    would appreciate some feed back on this –


    If the son would not let another (non-related) tenant stay in the property for a month rent free, I’d say this was non-commercial.


    As the mother only gave her son sufficient money for the deposit, how did she expect the remainder of the cost to be met?


    If the mother gave the son the deposit rather than loaned him the money then she can be treated as a beneficial owner of the property IF she is not named on the Land Regsitry title as a legal owner. The Court of Appeal considered the whole beneficial owner/legal owner claiming HB situation in a case involving New Forest DC (sorry can’t remember the name of the claimant) – definitely worth a read before you make a decision.

    If you want to get the info from Land Registry you can go online and for £2 download a copy of the title – it takes about 5 minutes.

    Kevin D

    The case law mentioned was:

    [b:c74669b8b0]Burton v New Forest DC (2004) EWCA Civ 1510[/b:c74669b8b0]

    The original Commissioner’s case was [b:c74669b8b0]CH/0563/2003[/b:c74669b8b0]. If you have difficulty in locating the ORIGINAL Commissioners Decision (i.e. pre Court of Appeal), feel free to pm me with your e-mail addy and I’ll be happy to send it to you.



    thanks everyone

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