Regulated activity or not?
Hi everyone, I’m new on here so please be gentle with me. I am a private landlord, letting 5 small residential units at present in the Bristol area.
My Great Aunt has been asked to buy her old friends cottage in Oxfordshire. As I understand things, the idea is my Aunt buys the cottage and allows her old pal to live there without paying any rent and details such in a deed of trust along with various contractual agreements.
My aunt is a retired head mistress with no business interests, this transaction would be a one off opportunity designed solely to help her friend.
My question to you is this; would my Aunt need to be registered with any financial agency like the FCA or the like?
Your help please?
Many thanks
David
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36% Gross Rental Yield - Is that even possible?
Member Since July 2013 - Comments: 1264 - Articles: 1
9:45 AM, 1st July 2015, About 11 years ago
Reply to the comment left by “DAVID SMITH” at “07/06/2015 – 12:12“:
Sorry just come back to this. What do you mean no equity released? What transaction is taking place then? If your aunt is buying the house, then the friend is effectively getting equity liquidated which would be vulnerable to care fees. The fact that your aunt now owns it would not protect it. So they would be both worse off. I fail to see how your aunt gains anything from this.- she ties up her funds which she may need later for an indefinitely long period. And why would she expect no rent?
They both need to take independent legal advice on this as it looks highly close to the wire. I cannot see any advantage for your aunt.