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Cheap rented house in exchange for doing it up - Legal obstacles
Hi there, this post is on behalf of my brother...
My brother and his partner and kids are struggling in their rented home that they do not really like and are paying over £1200 per month + bills. He is self employed builder and she works part time in a care home so income not best. They are desperate to move someware in a reasonable area but with cheaper rent.
A elderly freind of the family have offered them a beautiful period cottage with land in the country that they owned for many years, but have just come to some major inheritance money (7 figure sum), as a result they have moved out and bought someware else with no intention of moving back in, and they do not want to sell it for nostalgic reasons.
They are offering to let my brother and partner live in the cottage for a flat rate £500 per month, the property has a potencial rental yield of over £1000 per month easy in good condition.
The catch is that the house is very dated, not touched in many years and in desperate need of modernisation.
The mutual agreement would be a cheap rent cottage in exchange to slowly do it up to however they want it inside and out - as my brother is a builder after all. And to generally help a close family friend as well as have them maintain their old home at no cost to them.
However I am concerned that my brother and partner would have lack of legal protection to such a mutual agreement. I mean for example: What is to stop the owners from selling the house after my brother has finished doing it up?
My brother would generally do the house improvements slowly over time as his costs - hence cheap rent, and would keep records of own reciepts etc.
Is there any way my brother and the homeowner can put together somekind of legal contract to protect both parties in this?
I would be intriged to get any of your professional opinions on this, or if anyone has had cases like this before.
Many thanks
Jamie
My brother and his partner and kids are struggling in their rented home that they do not really like and are paying over £1200 per month + bills. He is self employed builder and she works part time in a care home so income not best. They are desperate to move someware in a reasonable area but with cheaper rent.
A elderly freind of the family have offered them a beautiful period cottage with land in the country that they owned for many years, but have just come to some major inheritance money (7 figure sum), as a result they have moved out and bought someware else with no intention of moving back in, and they do not want to sell it for nostalgic reasons.
They are offering to let my brother and partner live in the cottage for a flat rate £500 per month, the property has a potencial rental yield of over £1000 per month easy in good condition.
The catch is that the house is very dated, not touched in many years and in desperate need of modernisation.
The mutual agreement would be a cheap rent cottage in exchange to slowly do it up to however they want it inside and out - as my brother is a builder after all. And to generally help a close family friend as well as have them maintain their old home at no cost to them.
However I am concerned that my brother and partner would have lack of legal protection to such a mutual agreement. I mean for example: What is to stop the owners from selling the house after my brother has finished doing it up?
My brother would generally do the house improvements slowly over time as his costs - hence cheap rent, and would keep records of own reciepts etc.
Is there any way my brother and the homeowner can put together somekind of legal contract to protect both parties in this?
I would be intriged to get any of your professional opinions on this, or if anyone has had cases like this before.
Many thanks
Jamie
