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Ask Clare Your Own Question
Clare
Clare, Solicitor
Category: Property Law
Satisfied Customers: 34510
Experience:  I have been a solicitor in High Street Practise since 1985 with a wide general experience.
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My mother gave myself and my 3 siblings her house by way of

Customer Question

My mother gave myself and my 3 siblings her house by way of a deed of gift in 1998 on the verbal understanding that she can live in the property rent free for as long as remains there. We pay the building insurance and for the up keep of the property.
My Question is do we need to have a landlords cert. for the gas and electric and do we need a written tenancy agreement with her ?
Submitted: 1 year ago.
Category: Property Law
Expert:  Clare replied 1 year ago.

Thank you for your question

My name is Clare

I shall do my best to help you but I need some further information first

How much is the property worth?

Customer: replied 1 year ago.
approx. £135,000
Expert:  Clare replied 1 year ago.

How old is your mother now?

Customer: replied 1 year ago.
86 yrs old
Customer: replied 1 year ago.
Why, does the value of the property and my mothers age have any bearing on our obligations / responsibility as Landlords?
Expert:  Clare replied 1 year ago.

I checked the value to ensure that this was not a matter where Inheritance Tax was a problem.

I checked your mother's age to see if this was a matter where the Local Authority might take issue and call this deliberate Deprivation of Assets - which is still a possibility.

Since that is indeed the case then yes it would be sensible to make it as official as possible.

In addition you may find that it is a breach of your Insurance if you do NOT have the correct certificates in place even for a "tenancy" such as this

Please ask if you need further details

Customer: replied 1 year ago.
Are there any financial implications to myself and my siblings as a result of allowing our mother to live at the property rent free ?
Expert:  Clare replied 1 year ago.

I checked the value to ensure that this was not a matter where Inheritance Tax was a problem.

I checked your mother's age to see if this was a matter where the Local Authority might take issue and call this deliberate Deprivation of Assets - which is still a possibility.

Since that is indeed the case then yes it would be sensible to make it as official as possible.

In addition you may find that it is a breach of your Insurance if you do NOT have the correct certificates in place even for a "tenancy" such as this

Please ask if you need further details

Customer: replied 1 year ago.
The latest answer you gave appears to be a summery of my previous questions -You had already answered my question about inheritance tax,certification, deliberate deprivation of assets (which as I previously mentioned was completed over twenty years ago, so don't consider to be an issue).The matter I required an answer to was - Are there any financial implications to myself and my siblings as a result of allowing our mother to live at the property rent free ? for example, would we be liable to pay tax for rent which although we have never received, the law may determine should have been paid at the current/ previous market rate by our mother ?
Expert:  Clare replied 1 year ago.

I am sorry - I was not aware that I had answered any previous questions for you.

Do not be too confident about the 20 years - there is no time limit so far the Local Authority is concerned.

You are allowed to let your mother live there rent free - there is no question of being taxed on rent you chose not to charge.

The only potential issue would be the Insurance one