A tenant appears to be entitled to pay sub-market rent for the rest of his life after a legal case involving his former neighbours and the fine print of a 16-year-old mortgage deal.
Former Peacehaven residents David and Sheila Harding bought their friend and next door neighbour Colin Gregory’s three bedroom bungalow for £143,000 in 2001; they used what has been referred to as a ‘buy to rent’ mortgage which allowed Gregory to remain in the property and pay £800 a month in rent.
The Argus local newspaper in Sussex reports that the Hardings claimed Gregory was in financial difficulties with his mortgage at the time; Gregory disputes this.
The Hardings went on to move to Spain in 2002 but in 2014 decided to sell the Peacehaven property occupied by Gregory - but he declined to leave.
“We had a paper agreement stating that I could stay in the house for as long as I want for £800 a month, with a mortgage payment included in the rent. [David Harding] said we didn’t have that agreement when we went to court” Gregory is quoted in the newspaper.
The Hardings accepted an offer from a buyer who was willing to pay about £240,000 and keep Gregory as a tenant, but only at an increased rent of £1,200 per month - and this prompted a court case in Brighton over who precisely owned the property, and whether Gregory was entitled to remain in it at the sub-market rent.
Gregory’s solicitor cited two laws dating back to 1925 and 1948. Under the 1925 Property Act he has the right to pay £800 for the next 90 years - and this was agreed by the court.
It means that the Hardings can only sell the property if the purchaser accepts Gregory as a tenant at a rent of £800 per month, effectively for life.
You can read the full story here.
Join the conversation
Be the first to comment (please use the comment box below)
Please login to comment