Joint ownership tenancy with son
We have purchased a house, split roughly 75%/25%, with our son owning the 25%. We have a Declaration of Trust defining the percentages owned, which also sets out what each party is expected to pay for. We are charging him 75% market rent.
I have a couple of questions, which I hope someone will either be able to answer, or point us in the right direction. To complicate things slightly, my son lives with his girlfriend and their 2 yr old child.
1. Should we, or do we have to, draw up a Tenancy Agreement? There is no deposit involved.
2. Should our Son draw up a tenancy agreement for his girlfriend?
Thank you.
Leila
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Member Since June 2013 - Comments: 646 - Articles: 1
2:46 PM, 5th May 2015, About 11 years ago
bit of a strange scenario but i would say you dont have to have a TA but it would prob be best to. the girlfriend could then be named on the TA and that would make her joint and severally responsible for rent etc.
if you dont have a TA then your son could have a lodger agreement for his girlfriend. all a bit awkward and formal, but unless they have separate bedrooms then an AST for her is inappropriate.
Member Since July 2013 - Comments: 1434
7:00 PM, 5th May 2015, About 11 years ago
I would be interested to know what the tax man says about this arrangement.
e.g. does he consider that the rent is below market rate, and therefore tax on full rent rather than after expenses?
Have you run this past an accountant or a Tax Inspector?