Part owner or not?

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  • #38039
    rds01
    Participant

    We have just found out that our claimant used to be the partner of her landlord. We have also found out that when she sold her previous property she gave the landlord £40k towards the purchase of the property she is currently living in and paying rent. The mortgage is in the landlords sole name, as is the land registry. Can we consider our claimant to be part owner of the property and therefore ineligible for HB? Thanks.

    #107106
    michaelh
    Participant

    So you give someone £40,000 to buy a house that they have now kindly let you rent back off them! Jeez some people really do have no morals…erm….sounds like they are having a right old laugh at the HB system myself. I am sorry this doesn’t help you much Ryan but you need to everything in your powers not to allow this claim. Reg 8/9 is a starting point if you cant treat her as an owner.

    I really can not see how any LL could argue that there is a commercial agreement in place when he was gifted the deposit or part of the purchase price by the now tenant. I mean this really is taking the preverbial wee out of the HB system.

    You also have deprevation of capital issues as you cant just give away £40,000 and make a claim for HB. Also was there any other capital raised from the sale of her former home and what hapened to that if there was.

    The more and more I think about this the worse it is becoming in my head. I bet if you were to dig alot deeper into this case more and more would come to fruition and you may even have a case for your fraud squad. I think I need a :beer: after reading this….phew!!! 😉

    #107107
    Chris Robbins
    Participant

    Probably not. He is registered as sole owner and presumably the registration docs show no restriction on sale.
    So, what you are looking for is information regarding whether there is any separate deed of trust which might show your claimant has a beneficial interest in the property.
    If there is no such interest then you are looking for reasons why the gift was made and whether the disposal was for the purposes of enabling her to claim benefit. The timing of the gift, the move to the new property and the date of claim will be indicative of intentions.
    If all else fails you are back to the various provisions of good old reg 9 re commerciality/contrivance.

    #107115
    Kevin D
    Participant

    In addition to the points made by Michael and Chris, a further question springs to mind which may or may not be related to a trust issue. In return for the alleged usage of the £40,000 to help purchase the premises, did the clmt & LL agree that the clmt had the right to occupy the property? If so, it may well be that any so-called tenancy is null and void.

    #107121
    rds01
    Participant

    Thank you all for your help, much appreciated.

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