I have been renting a flat that is owned by my parent for over 5-years, but my parents when asked today state they dont have an official tenancy agreement for me. I have been making monthly standing orders from my bank account to my fathers for the whole 5 years (paying the rent) and this will be reflected in my bank statements. I am also on the electoral role at my address and have been for many years. I also pay the Council Tax in my name and the Water Rates in my name. The same can be said for Gas and Electric. All bills are in my name and paid by me as would be evidenced by my bank statements or credit card statements. The property is a fully self-contained purpose built one-bed flat in a small block and not physically connected to my parents home in any way. All of the above has applied since 2003 when I moved in. My concern is could the Official Receiver / Court view this flat that my parents own as a "beneficial interest". Obviously I cannot go down the route of bankruptcy if it stuff's up my folks value in their flat I am renting or my debtors / the Courts can get money from the value of my parents flat. I have not informed my parents of my plans yet, but intend to do so before I officially file for bankruptcy. Any other problems with the fact that my flat happens to be owned by my parents? I pay all bills and a market rent of 10-20% less than general average for this area. Really appreciate any tips / feedback here. Thanks in advance
The flat shouldn't been seen as a beneficial interest. Even though you do not have an official rental agreement you have been paying rent and the associated bills for the last 5 years so you are the tenant and your parents are the landlords.
I have been renting a flat owned by my parents
Posted - 25 April 2009 : 14:52:18
