A premium is the price paid by a tenant to a landlord to purchase a rental agreement. Most of the time, a premium is used in return for reducing the rent to what would otherwise be payable. In the case of new commercial leases with a maximum term of 25 years, it is rare to take a premium. Premiums are most commonly used for long rentals of residential real estate. I agree with John`s proposal. The case law relied on is almost certainly relevant; However, it is also selective. There is a wide range of case law regarding liability/non-commercial/benefits and it really needs to be taken into account in the cycle. We have to answer LA`s questions honestly. Any other approach may leave clmt and/or LL open to fraud charges. One question that comes to mind is: Do so-called clans have the right to occupy the property regardless of rental fees? If so, no rental fee may be applied. With respect to the case law, “Ross” is on this page: www.rightsnet.org.uk/pdfs/R_v_Poole_BC_ex_p_Ross.docI has forwarded a transcript of “Keegan” to Rightsnet and I hope that there will be no copyright issues that would prevent the provision. The burden of proof that an agreement is not made on a commercial basis rests with the decision maker and not with the applicant. It is important to emphasize this in court, as it can be a determining factor for the complainant if the evidence is sparse.
It is the whole agreement, not just the payment by the tenant, that should be taken into account by the decision maker to assess the economics of an agreement. R (H) 1/03 is the most important case that takes into account the approach to be taken during the review and states that: With respect to “family rates,” there is no law that states that you must set the amount of rent at market price. But usually with a fictitious lease, if the purpose is to mislead the benefits system, the lessor can calculate well above the market price while waiting for it to be paid by the local authority. They may even charge higher rents for all tenants receiving benefits as tenants who pay the rent themselves, or charge only rent to family members if the tenant is unemployed and entitled to benefits, but lives without rent when the family member works. ` .. a commercial lessor can completely enter into a commercial contract with a tenant whom he is aware of without a surety or, at first, without a written agreement. Agreements between family and friends should not automatically be considered non-commercial, while it appears that benefit rights under such agreements will attract further scrutiny from policy makers. The mere fact that both parties are friends or relatives does not necessarily mean that the agreement cannot be used for commercial purposes. Much will depend on the different facts of each case.
`… The appropriate approach for an appels court is to examine and determine the facts essential to the issue and then determine, as a matter of “composite fact,” whether the agreement was not on a commercial basis because of the correct use of language, applying the principles established by the authorities” E mandatory unsusced verification. The decision maker upheld the original decision, but did not provide any further justification as to why he felt the lease was not commercial, but simply listed the legislation in this area.