Terms & Conditions

[jbj]

Hi
I have a recon to do and am torn between how to treat this case- as she wants to go to appeal
Senario
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 –

[Anonymous]

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.

[simonh]

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

[Anonymous]

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]

http://www.bailii.org/ew/cases/EWCA/Civ/2004/1510.html

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.

Regards

[jbj]

thanks everyone

[Author]

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