Did you get that reply
In 2000 I bought a house off a friend at a discount as her relationship ended. Her EX sold her the house 25 % discounted and contemperaneously i bought it from her
We used the same solicitor who drew up an agreement that she pay me rent roughly the same as my mortgage on Shorthold tenancy agreement
On or before 1/1 2004 the property was to be soldand any profit distributed between us
I did not sign this as I found out she was claiming Council Housing Benefit
I consulted another solicitor who adivsed me not to sign as this would be illegal
In 2007 my tenant was given a legacy and now wants the house as she says she has a beneficial interest as I was a trustee for her
Can an Illegal contract not signed be enforced
Did you get my reply?
I bought the property in my sole name she rented it on a proper tenancy
We had a verbal agreement that any profit would be shared on or before 1/1/2004
I paid £60,000 but she forwent the deposit
She underpaid rent by a large amount after 7 months and the council paid her Housing Benefit to pay me but did not pay in full
The house value now does not realy matter as it is the principle I need to establish
She forewent the deposit and we agreed that anything more than £45,000 would be shared
I beleive that the crux of the matter is CAN HOUSING BENEFIT BE USED TO BUY A HOUSE OR A PROPERTY YOU OWN OR IN WHICH HAVE A BENEFICIAL INTEREST ?
Did you get my last reply
Surely any agreement tainted by illegality is not enforceable at law
How can a fraud be the basis of a legally enforceable contract?
If I had signed the agreement knowing the rent was fraudulently obtained would have made me conspiritor to defraud the local authority
Also what about the proceeds of crime -- can one benefit from a crime?
One cannot have housing benefit on a property which is in trust for one-- FACT