- Lady gifts house to her two grown up children 9 years ago.
- By mutual agreement the lady carries on living in the house on her own as her home.
- The family now want to grant/give something (preferably back-dated) to the lady that defines in unambiguous terms that the lady has a right to live in the house and under certain terms.
Is this possible and if so what is the best way to deal with this please? I was thinking of a Statement of Terms as the lady effectively had a verbal agreement?
If the rent is less than £250 per annum (or £1000 per annum in Greater London) it cannot be an AST. As such, it would be a contractual tenancy.
Otherwise it would be an AST and a statement of terms could be provided although that’s a very basic list.
If you’re wanting to give a little security, it’s best there be some rent even if small because a tenancy with no rent payable is excluded from Protection from Eviction Act.
Finally, if the rent is not a market rent (I.e. lower than market value) it must be made as a deed.
Thank you for the prompt response. So if I went for Statement of Terms for £1 a month would that need to be executed as a deed?
A statement of terms is only for an assured or assured shorthold tenancy but £1.00 per month would require a contractual tenancy made as a deed.