Terms & Conditions

[marie1]

Property owned by Mr A who lives elsewhere. Mr A has lease agreement with Miss B, Miss B moves friend in with her and asks Mr A if this is ok. Mr A replies he has no problem with sharing property so long as Miss B remains soley responsiable for bills, lease etc. Miss B then creates tenancy with Miss C charging her £300 which includes bills. If you are still with me.. then my thinking is that Miss C’s agreement is not on a commercial basis as it is not enforcable, as agreement between Mr A and Miss B, and that Miss C really has no rights and That Miss B could not enforce payment as only sharing agreed to. Miss C is not a border and as far as I can see not a sub tenant. Any guidence/experiance on this matter would be really appreciated.
Thanks

[David]

From the information you’ve provided, I’m not sure I agree.

Whether Mr A wants Miss C to be a sub tenant is not the important point here. (And from the way I read it, there is no certainty that that’s the case – he just wants one tenant to deal with rather than 2)

Assuming you’re satisfied there is the intent to create legal relations between Miss B & Miss C (nothing to indicate that there isn’t), you could consider commerciality. Again, I can see nothing to indicate that it is not commercial, unless you know Miss B would not seek to revover rent arrears. Created to take advantage of HB scheme – again I do don’t think you can say this is the case.

I’m willing to be persuaded otherwise, but I think you should pay HB to Miss C.

[Anonymous]

I would agree with David on this one.

I think Ms C is a sub-tenant of Ms B, and here we have a number of sub-tenancies created in this way.
You would have to refer the rent to RO, but as long as it is deemed reasonable, then I can see nothing in your original post to make me want to say “don’t pay this”. 8)

[Author]

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