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UKSolicitorJA
UKSolicitorJA, Solicitor
Category: Law
Satisfied Customers: 6052
Experience:  English solicitor with over 12 years experience
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I would like advice regarding a private tenancy agreement

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Hi, I would like advice regarding a private tenancy agreement with a tenant in receipt of housing support
Assistant: What steps have you taken so far? Have you prepared or filed any paperwork?
Customer: No. I have a tenancy agreement in place
Assistant: Where is the property located?
Customer: Enfield
Assistant: Anything else you want the lawyer to know before I connect you?
Customer: The tenant is my mother. I have received some questions from the council that I would like help with answering

Hello,

Please type your questions.

Customer: replied 27 days ago.
Hi there. I bought a second property using a buy to let mortgage. I decided to rent it to my mother as she is in receipt of housing benefit. My understanding was that we only needed a tenancy agreement in place for the council to pay the rent. They have now sent me a lot of questions that I wanted to answer with legal advice please.
Customer: replied 27 days ago.
Is this something you can deal with?
Customer: replied 27 days ago.
If so, I'm happy to talk on the phone

I am unable to talk at the moment. Please type your questions

Customer: replied 27 days ago.
See attached

You need to answer these questions in your capacity as a landlord. The council is looking to establish that it is a genuine arms length tenancy agreement and not a sham e.g. you may also be living at the property as a family or your mother may have a beneficial interest in the property.

May I help further?

Customer: replied 27 days ago.
A few issues that I actually wanted help with.
Firstly, it is a true tenancy. I do not live there and my mother is not a beneficiary. I certainly cannot afford to pay 2 mortgages.
1. Does the fact that I did not officially advertise the property present a problem?
2. I offered rent that was twice the amount of the buy to let mortgage, but £300 beneath market price. Is this a problem?
3. I was stupidly assured by my mother that once she moved in the council would transfer her rent to me. As such, they are asking why she has moved in without paying. Is this a potential problem as well?
Customer: replied 27 days ago.
Hi. Just checking you're still there. Thanks

1. No. This is not a problem;

2. Not a problem but it could mean that she is not a bona fide tenant and is getting preferential treatment, which however is not a deal breaker. It is your commercial decision at the end of the day.

3. Yes, this could be a problem as again, it could mean she is not a bona fide tenant.

All the best. Please click on 5 stars

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Customer: replied 27 days ago.
Thanks a lot. That's very helpful!