Keeping a lid on it
Q. My mother remarried late in life and when she died ten years ago she left her house to my sister and I. However her husband was allowed to remain in the property during his lifetime as long as he paid the bills and kept the property in good repair. Now the property needs a new roof, but he says he cannot afford this. If we have to pay for this, would we be able to charge a nominal rent to recover our expenses?
A. Quite a lot will depend on the exact terms of the right of residence conferred on your stepfather by your late mother’s will. If his occupational rights are subject to keeping the property in good repair, this may not extend to enhancing the property by putting a new roof on it. To the extent that the terms of the will aren’t being adhered to, the trustees of your mother’s will (presumably you) could attempt to evict your stepfather and take possession of the property. However it’s unlikely that a court would go along with this, so you will probably have to compromise. If the house is not fit for occupation it would be in your stepfather’s interests to agree to the house being sold in order to buy a more suitable property. You would then have to reach an agreement that the replacement house is occupied on the same terms as the present house.

Contract to wait
Q. We reserved a new-build property in November ’06. It was meant to be ready in March last year but the builders have gone bankrupt and we have no house. However we do have a contract with the builders, and there’s a suggestion that we will still be liable to pay 10% of the purchase price if we pull out at this stage. We didn’t pay a deposit, but we’re worried that they could take us to court for the money.
A. It’s most unlikely that the trustee in bankruptcy would be able to enforce a contract where the property has still to be built and is already nearly a year behind schedule. The contract itself is likely to say something about delays to the schedule, but even if there’s no get-out clause the law says that contracts must be fulfilled with a “reasonable” time. Twelve months behind schedule would not be seen as reasonable. You should show the contract to a solicitor to be absolutely certain. It’s unusual for the builders not to ask you for a deposit. This may have contributed to their demise.

Should we buy daughter’s house?
Q. My daughter is in a terrible financial mess, owing more than £20,000. They bought their council house three years ago but her husband has now left her and wants £25,000 for his share of the house if it’s to be sold. She has a young daughter from a previous relationship. She’s now suggesting we buy the house since we would get a better interest rate and she would pay the mortgage. Would she lose her home if she declared bankruptcy?
A. Is the £20,000 debt jointly owed by your daughter and her husband? If so their creditors are more likely to chase him for the money if he’s working. Your daughter could certainly suggest that they do! Your daughter shouldn’t declare herself bankrupt while there is £50,000 worth of equity in their property. She could sell the house to meet her debts if necessary, but she should first try to reach an agreement with the creditors. The Citizens’ Advice Bureau may help her with this. If you were to buy the house without the couple reaching a divorce settlement your son-in-law would receive his share of the equity. In reality he would be likely to receive very little from a divorce settlement while there’s a young child living in the house. Your daughter should see a solicitor specialising in matrimonial work.

In the wrong band
Q. My husband died recently so now I pay all the bills. I notice on my council tax bill that the house is in a lower band than it should be: we had an extension built some time ago, and I assumed since we applied for planning permission it would have been taken into account. Should I draw their attention to it and would I be liable for my husband’s share of any arrears?
A. Improvements to your home will not change your property’s council tax band unless you either sell the house or there is a countrywide council tax revaluation. Since a proposed revaluation has been postponed indefinitely you don’t need to worry about it in the immediate future: there are no arrears. The council tax bands are quite wide, so your extension will not necessarily have increased the value of your property to an extent where it would be placed in a higher bracket. Bear in mind that the current bands are based on what your property was worth 17 years ago, and not what it is worth today. If you are now living alone you should apply for a 25 per cent reduction.