If I put my houses in my tenants name would I be exempt from onerous retrospective legislation?

If I put my houses in my tenants name would I be exempt from onerous retrospective legislation?

11:27 AM, 1st December 2021, About 2 years ago 37

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Yes, I know this may be the most ridiculous question. But I ain’t Einstein even though I have 27,000 times more common sense than the Govt and Nottingham City Council.

You only know the answer if someone tells you. So come on Ian Narbeth, Chris Possession Friend and all you other Legal experts.

I’m talking could we now tell Licensing, Sorry Licensing Bafoons, tenant part-owns, she don’t want Licensing and your extortionate fee and regs and rules telling her she can’t have open-plan kitchen when her Mum does, but you discriminate against tenants like they are little children being told they must have this and that.

Sorry EPC, she don’t want any more work being done.

I’m only suggesting a 5% stake which would be 7kish, which I don’t mind anyway as I’m gonna give them that should they ever wish or be in a position to be able to buy from me.

I know the tenants could have me over a barrel, saying We’re selling this now, Mick. Well, that suits me fine because I want to sell a lot of them anyway. And the 7k would only be the same as above.

Would a pitfall be they could say No Mick, we ain’t ever agree to sell to anyone? And they’d never sign?

Most of mine are on Benefits, would Universal Credit then say Sorry not paying your rent, you part own the house.

I’m gonna guess some of you are gonna shoot me down in 9 seconds saying Don’t be ridiculous Mick, this and that will happen. And Licensing will still apply.

Thanks in anticipation of quelling my dreams.


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Comments

Rob Crawford

14:39 PM, 1st December 2021, About 2 years ago

I don't see any problem with this Mick. Assuming you don't take any rent whatsoever that is!

Ian Narbeth

15:51 PM, 1st December 2021, About 2 years ago

Hi Mick
My gut feeling is this won't work. If you charge rent then the arrangement looks like a sham.You could agree to sell with a 5% deposit and a delayed completion date but that introduces other complications.
If this worked then others would be doing it.

Darren Peters

12:07 PM, 2nd December 2021, About 2 years ago

Another difficulty to overcome would be if you want a loan against the property any bad credit history the tenant as part-owner has could making borrowing difficult or impossible for you.
I wonder if there might be mileage in you becoming the bank, selling the property to the tenant and collecting mortgage payments instead of interest.
Another angle to this might be a Sharia mortgage - have a look here in case one of the types fits what you're trying to achieve.
https://www.unbiased.co.uk/life/homes-property/what-is-an-islamic-mortgage-and-how-do-they-work
Ultimately you lose future capital appreciation but also the day to day responsibility for the property.

Edited to add, you may need to become licenced or overcome impossible hurdles to become a lender.

Mohammed Shafiq

12:08 PM, 2nd December 2021, About 2 years ago

Interestingly Islamic Mortgages work on this principle - the tenant pays "rent", not interest, on the proportion of the house they don't own. The rent reduces over time as the tenant acquires more of the house until eventually they become the full owner. So it could work. Caveats would need to be put in there such as tenant has to pay full insurance and council tax, and majority stakeholder has ultimate decision-making responsibility on disposal of the property.

Paul

12:25 PM, 2nd December 2021, About 2 years ago

Look in to rent to own, this is a becoming a very popular strategy with a win win for the tenant and the freeholder. Far superior to leasehold from the tenants perspective and from a freehold perspective, minimises costs and reduces risk.

Mick Roberts

12:43 PM, 2nd December 2021, About 2 years ago

Reply to the comment left by Rob Crawford at 01/12/2021 - 14:39
Ha ha Rob u sarcastic Bas___d. Man of my own words.

Mick Roberts

12:43 PM, 2nd December 2021, About 2 years ago

Reply to the comment left by Ian Narbeth at 01/12/2021 - 15:51
There we go Ian, We all got to have hope & anticipation. And for a short period, I may have had some hope. But if a man of your legal knowledge says gut feeling, there may still be hope.
It is a sham we got that right. I don't mind sham, as long as not breaking any law.
Aah delayed completion date, the plot thickens. Maybe something for u to look into then Ian & charge us all for setting this scheme Oops structure up.

Mick Roberts

12:44 PM, 2nd December 2021, About 2 years ago

Reply to the comment left by Darren Peters at 02/12/2021 - 12:07
Yes I don't want any borrowing any more, not had none since 2009 I believe. But I get if others want to try this, may affect them.
You have some good idea's too Darren, but I'm not becoming Lender, I want to reduce my admin, not increase.

Mick Roberts

12:44 PM, 2nd December 2021, About 2 years ago

Reply to the comment left by Mohammed Shafiq at 02/12/2021 - 12:08
There u go Mohammed, u, Darren, Ian, u 3 could get together & maybe solve this for say 20% of Landlords who want to sell to their tenants & we could reduce the impending homeless by hundreds of thousands.

SCP

13:58 PM, 2nd December 2021, About 2 years ago

Please consider me as your absentee Tenant, who cannot claim UC.

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