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Tenant Or Lodger?

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Two sisters own a 2-bed flat.

One of the sisters is not living there, and has let her room to a friend, who has signed an AST. The other sister continues to live there.

Is "friend" T or lodger?

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Two sisters own a 2-bed flat.

One of the sisters is not living there, and has let her room to a friend, who has signed an AST. The other sister continues to live there.

Is "friend" T or lodger?

Lodger, one of the acts (off the top of my head the 1988 HA) states that a lease can not be a tenancy if the LL lives in the property... I will take a looks and get the chapter and verse

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Lodger, one of the acts (off the top of my head the 1988 HA) states that a lease can not be an assured tenancy if the LL lives in the property... I will take a looks and get the chapter and verse

Indeed the 1988 HA, Schedule 1: Tenancies which cannot be assured tenancies, Part I clause 10

http://www.letlink.co.uk/letting-statutes/...es-1-and-2.html

Lodger and landlord have very few rights.....

The solution may be to put the property in a trust but probably too expensive to be worth the effort

Edited by Matt Henson

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Problem with putting into a Trust is CGT. Actually, that's not a problem at all - as disposal into Trust is a deemed disposal of PPR, so tax free. Trust then ends up with Capital losses on eventual sale... and the PPR is locked in.

Problem with putting into a Trust is IHT. It's a chargeable lifetime transfer, so 20% tax up front on the excess over the nil rate band - which is £312,000; so that's probably not a problem either. There will however be a ten-year charge on the Trust every ten years.

Anyway, going back to the original question, thanks Matt I am aware of Sch 1 para 10 HA88. The thing is that the resident L claims not to be (in fact was not) the individual who granted the tenancy. I suspect that this is completely wrong in Law. I imagine, but do not know, that even tenants in common own a specified proportion of the entire asset - rather than each owning a specific room within the property.

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I don't see how Schedule 1 applies.

The departed sister rented out her proportion of the asset and is not resident.

The other sister is neither a resident landlord nor a fellow lodger.

They both have a right to share communal areas (bathroom- unless

each has their own ensuite) , one by ownership, the other by rental/lease

but that does not exactly coincide with the application of Schedule 1.

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I don't see how Schedule 1 applies.

The departed sister rented out her proportion of the asset and is not resident.

The other sister is neither a resident landlord nor a fellow lodger.

They both have a right to share communal areas (bathroom- unless

each has their own ensuite) , one by ownership, the other by rental/lease

but that does not exactly coincide with the application of Schedule 1.

The original post does not tell us which sister is the LL is so you can not assume this situation.

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One of the sisters is not living there, and has let her room to a friend, who has signed an AST. The other sister continues to live there.

Yes it does, Matt! Anyway, the answer is that the remaining sister is not bound by the invalid AST signed by the first sister.

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  • 399 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
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      • Even
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      • up 5%



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