Student Renting Question

sid · 5 Aug 2006 at 12:47

Hi Guys,

I will be living with my brother in london from next sept/oct and I have already found a place so this isn't to do with that.

Heres the thing, the house in which we will be living belongs to our parents. We will obviously have to pay rent for lol

What I was wondering is if my parents wanted to rent us that place officially, what would they have to do? We need that place for 5 years. If the place is officially rented to us then they wouldn't have to pay council tax would they cos we are both full time students (parents won't be living with us phew!1)

Is it pretty simple to get like a 5 year lease? or would it be too much hassle? I know we will need to speak to a solicitor about it. Does anyone have any input in this case?

thanks a lot

sid

fanger · 5 Aug 2006 at 12:54

I would say provisionally that you and your parents would sign a "6 month Short-Hold Tenancy Agreement" but I'd check with a solicitor about Council Tax liabilities as he might point out a more mutually advantageous way of doing it. Then, it's worth paying for an hour or so of his time with the savings you could make.

sid · 5 Aug 2006 at 13:03

So this is certainly plausible and a good idea?

Its a bit cheeky but nothing illegal or dogi ?

sid

Rotty · 5 Aug 2006 at 13:06

if they do this then the rent will be a taxable income

fanger · 5 Aug 2006 at 13:11

sid said:
So this is certainly plausible and a good idea?

Its a bit cheeky but nothing illegal or dogi ?

sid

As far as I know there's nothing illegal about it but as stated below edit: above the income will be taxable - just get a solicitor to maybe find the tax breaks available.
One thing - your parents might be able to 'gift' you the rent on an annual basis- which would be non-taxable and basically keep all the money in the family.

sid · 5 Aug 2006 at 13:25

Rotty said:
if they do this then the rent will be a taxable income

Yer but they are my parents, The rent will be lets say minimal

sid · 5 Aug 2006 at 13:38

Whats all this about commercial rates for water, electricity and gas?

sid

Over Clocker · 5 Aug 2006 at 14:26

Nothing wrong with this at all.

When the council tax form comes tick the box that says all residents are exempt and send off your council tax exepmtion certificates with it which you can get from your university.

Mal

Van Hellseek · 5 Aug 2006 at 14:35

is your brother a student too?

a few moths ago someone at the city council told me that students aren't exempt from council tax unless...

a) they live in a student-only house

or

b) they have a council tax bill in their name (which is impossible in a HMO since the bill would always be issued to the landlord and not tennants).

so obviously in the latter case the landlord would have to pay the bill, and then it would be up to him how he bills the tennants (although he wouldn't legally be allowed to bill them a penny if it wasn't mentioned in the contract). at this point of course it would be entirely between the landlord and tennant, and therefore have nothing to do with the council - hence it being impossible to claim exemption from.

big_white_dog84 · 5 Aug 2006 at 15:17

The council tax goes according to occupancy. Yours will be £0.

sid · 5 Aug 2006 at 15:54

sounding good so far !!!

My brother is a student too so that won't be a problem

thanks for your help , i know for sure that my uni issue council tax exemption certs.

no ideas about commercial gas, water, etc bills??

cheers sid