Sub-letting

[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 👍