Shared ownership?

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  • #38437
    Anonymous
    Guest

    Hi,

    I have a case where the claimant owns 75% of the property he lives in and his parents own the remaining 25%.

    He has submitted a claim for HB on the basis that his parents are charging him rent of £100.00 per month to cover their share.

    Taking aside the issues of non-commerciality and contrivance, would you treat the £100.00 paid to the parents as ‘payments of rent’ or not?

    Any advice would be greatfully received!

    🙂

    #108331
    Kevin D
    Participant

    Does the clmt’s name appear on the Land Registry as one of the freeholders? If so, nil HB courtesy of HBR 12(2)(c) because he is “an owner” for the purposes of HB. For the definition of “owner”, see HBR 2 and the case of Burton v New Forest DC [2004] EWCA Civ 1510.

    If the clmt is not “an owner” for HB purposes, the question of whether the payments count as rent or, in any case, payments that are eligible for HB (see HBR 12(1)) will depend on the facts. In short, you’ll need to establish all of the facts relating to the agreement / arrangements between the parties.

    If the agreement between the parties (whether or not in writing) gives the clmt a legal right to occupy the dwelling in any case, a rent charge (or charges for use and occupation) may not be enforceable and, on that basis, no HB would be payable – aspects of CH/1578/2006 may be of interest.

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