Sale subject to tenancy- does P become landlord ?

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    Sale subject to tenancy- does P become landlord ?

    I'm Selling one of my buy to lets to my son. The tenants are remaining. Does he have to become their landlord ?
    Or in other words does the landlord of a property always have to be the owner of it ?

    #2
    Originally posted by Pobinr View Post
    I'm Selling one of my buy to lets to my son. The tenants are remaining. Does he have to become their landlord ?
    Or in other words does the landlord of a property always have to be the owner of it ?
    Isn't this primarily a 'tax' issue? Ie, the letting income must be taxed to the individual(s) who own the property, ie that will be your son regardless of who the landlord is.

    If it is necessary for the landlord to be an owner (and I really don't know), then couldn't you just transfer 99% of the value of the property to your son (you'd need to formally register the ownership of the property as "Tenants in Common" first), ie retaining a notional 1% yourself to enable you to stay as landlord? You'd also then be responsible for paying tax on 1% of the letting profits).

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      #3
      Originally posted by Pobinr View Post
      I'm Selling one of my buy to lets to my son. The tenants are remaining. Does he have to become their landlord ? Yes as you will no longer have any beneficial interest in the property
      Or in other words does the landlord of a property always have to be the owner of it ? No they don't but in this case it is, or will be.
      Don't forget you will have to pay any CGT liability by 31 January 2010 if you dispose of it within this tax year.
      The advice I give should not be construed as a definitive answer, and is without prejudice or liability. You are advised to consult a specialist solicitor or other person of equal legal standing.

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        #4
        And the sale will be deemed to be at MV for CGT purposes, irrespective of the price agreed between you and your son.

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          #5
          Originally posted by Pobinr View Post
          I'm Selling one of my buy to lets to my son. The tenants are remaining. Does he have to become their landlord ?
          Or in other words does the landlord of a property always have to be the owner of it ?
          Yes, to both. On you transferring, son becomes owner and L.
          He will need to serve T with:
          a. your Letter of Authority for future rent collections;
          b. Notice under s.3 of LTA 1985; and
          c. Notice under s.48 of LTA 1987.
          JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
          1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
          2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
          3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
          4. *- Contact info: click on my name (blue-highlight link).

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            #6
            [QUOTE=Pobinr;91050]I'm Selling one of my buy to lets to my son. The tenants are remaining. Does he have to become their landlord ?Or in other words does the landlord of a property always have to be the owner of it?[/QUOTE)

            However..if by 'landlord' you mean manager (of the rented property), then no - someone else (e.g. you, or an agent) could manage it. Sorry if that wasn't what you meant!
            'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

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              #7
              Originally posted by jeffrey View Post
              Yes, to both. On you transferring, son becomes owner and L.
              He will need to serve T with:
              a. your Letter of Authority for future rent collections;
              b. Notice under s.3 of LTA 1985; and
              c. Notice under s.48 of LTA 1987.
              Jeffrey Many thanks

              Comment

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