Moving house

[Electric_Andy]

Has anyone ever sub-letted a property? If so, I'd like to know how you went about it please.

Background: I rent off my Dad, house is in his name. He was going to sign it over to me (as an early inheritance) but he got cancer and didn't get around to it. He's still alive by the way. He spoke to his solicitor and was advised not to sign it over to me yet because he has a number of other incomes that would push him above a certain threshold where he'd be clobbered with tax for this financial year. So he has to (wants to) wait until April 2024.

So his solicitor has said there's no reason I can't sub-let it in my name when I move into a new house I have bought with my partner.

However, my estate agent has never dealt with a sub-let before and will not take on the property without, in their words, "some sort of assurance". They are basically worrying about who would have overall responsibility should something bad happen i.e. legal proceedings/death or serious injury from gas leak etc etc.

So who do I go to now? I'm just worried that if I pay a solicitor do draw up some sort of agreement, and then take it to the estate agent, that they will still be too nervous to take it onto their books, and if I then go to another estate agent they may want something entirely different drawn up.

Should I just contact another estate agent who will hopefully have had experience with this before? it can't be that uncommon surely?

Thanks

 

[Kingfisher101]

There was something on the news about this that the Government were going to tighten up with subletters via legislation because tenants were not able to get jobs done because no one really knew who the owner was etc. I don't know the outcome but what I'd do is just ring round a few estate agents and ask them the best course of action as you are potential client. Then take it from there? Also you don't have to rent it out through an estate agent you can just DIY?

 

[wiggydiggy]

NAL

If your dad has all his faculties then can he not contact an estate agent himself, and instruct them that you are his point of contact and manager? He might have to have to sign a few things I'd guess?

Alternatively as above do it privately, a friend of mine does this. He got the contract from online and informed his insurance, council etc himself. Advertised it on Gumtree I think,

 

[Sharky]

Are you anywhere near a university town? Letting to students could be an option and will only tie you down to the end of the summer term. But you would need to satisfy various regulations, of which, haven't a clue.

 

[Electric_Andy]

There was something on the news about this that the Government were going to tighten up with subletters via legislation because tenants were not able to get jobs done because no one really knew who the owner was etc. I don't know the outcome but what I'd do is just ring round a few estate agents and ask them the best course of action as you are potential client. Then take it from there? Also you don't have to rent it out through an estate agent you can just DIY?

Thanks, yes will probably phone around, just wanted to use a specific estate agents because we know them. I'm not at all keen on DIY as the agents do credit checks etc which I can't do

 

[Electric_Andy]

NAL

If your dad has all his faculties then can he not contact an estate agent himself, and instruct them that you are his point of contact and manager? He might have to have to sign a few things I'd guess?

Alternatively as above do it privately, a friend of mine does this. He got the contract from online and informed his insurance, council etc himself. Advertised it on Gumtree I think,

Yes he has all his faculties and rents another property out himself, he just expects me to sort it out because it's my house (just not on paper). I'm trying to do as much as I can because he lives 30 miles away and is 73

 

[Electric_Andy]

Are you anywhere near a university town? Letting to students could be an option and will only tie you down to the end of the summer term. But you would need to satisfy various regulations, of which, haven't a clue.

In Plymouth but not near enough to town. Also house not suitable for students.

 

[wiggydiggy]

Yes he has all his faculties and rents another property out himself, he just expects me to sort it out because it's my house (just not on paper). I'm trying to do as much as I can because he lives 30 miles away and is 73

Yeah I understand, my mother is a similar age and though i dont rent a house from her I do a lot of other stuff.

I hold a POA for her which makes things easier, might be another option for you.

 

[vickster]

Don’t forget to declare the income to the taxman. There’ll also be capital gains if it’s sold and/or IHT eventually.
It’s not your house until your name is on the deeds so any tax liability would be down to him (presumably he/solicitor/accountant aware)

 

[CXRAndy]

Why don't you just give the house back to your dad. He can do what he wants with it.

Is your father going to hold you to the tenancy agreement

I would suggest your father takes further advice re inheritance and tax matters from a tax specialist accountant

 

[Electric_Andy]

Yeah I understand, my mother is a similar age and though i dont rent a house from her I do a lot of other stuff.

I hold a POA for her which makes things easier, might be another option for you.

Yeah I've just been made POA 👍

 

[Electric_Andy]

Update: long story but it may help someone sometime.

I have found some very nice tenants who want to move in to my house ASAP (my neighbours' friends). House is being signed over to me as we speak. I have downloaded the government template for rental agreement. So that side of things is in hand thankfully.

Just to throw a spanner in the works:

My partner's house sold 2 months ago, we are number 4 in a chain of 5. We were all set to move on Friday into our new home; the first 2 houses in the chain completed. 6 weeks ago, our buyers' lender (Nationwide) queried my partner's loft conversion so we consulted the council and they said as it was completed in 1979 it did not require a building reg certificate. This was communicated to Nationwide 6 weeks ago. On Monday, Nationwide (and our lender) released the mortgage monies so we booked a van and were going to move on Friday just gone.

By the time I got the van back to my partner's house, she'd had a call to say Nationwide have put a freeze on everything and are now insiting that a surveyor inspects the loft conversion...something they did not initially do 6 weeks ago and have chosen to do now.

The house has been bought and sold as a 4 bed property 3 times since 1979 with no issue. We are hoping (best case scenario) that the surveyor views the bedroom, signs it off, and we all move in under license (technically squatting in each other's new homes until 5 working days has cleared to move all the money again).

Worst case scenario: the surveyor doesn't sign it off and doesn't class it as a habitable room. So my partner's house becomes a 3 bed, not 4. So her buyer cannot then use it as a bedroom and will not buy the house. So it all falls through. Meaning person no2 in the chain has bought a house but cannot move in (they are currently staying with their Dad).

What a collosal cook-up. Nationwide have admitted serious failings but that doesn't help us much. Fingers crossed I suppose.

 

[fossyant]

It's a mess these days with older extensions etc. We had issues with MIL's conservatory (mainly brick) as it was built way before current regs. I think we stumped up a few quid for an indemnity, just to ensure it completed. I don't know what it is with lenders now, expecting houses built/extended many years ago being upto a current building reg. It won't be.

 

[postman]

Fingers crossed for all of you.How petty seeing as it's been sold before.

 

[Electric_Andy]

Thank you. The surveyor came round today and stayed for 10 minutes. He said he will send his report to Nationwide and that he can see no issues with it being a habitable living space. But ultimately it's still up to Nationwide, they can either tick a box to say they are happy so we can move, or they can insist on getting a structural engineer around to do a proper report