I live in a property which has a garage attached which is rented to a neighbour, these are on a peppercorn rent of £1 per year. Now with a peppercorn rent I've read various descriptions which some saying you don't have to collect it, however my solicitor upon buying the property told me it was important to collect them. He did not at the time state the reason, but after doing some research it occurs to me that if the rent is not collected there could be repercussions. The property owner I rent to actually told me that he was told when buying the property that the garage would be his in ten years, this would be a terrible situation for me as the property owner.
Obviously these people are my neighbours and I don't want a dispute over this, but I don't want to potentially lose the value of my home, by not owning the garages and potentially making it unsaleable. My neighbours actually refuse to pay now, but I could be in the wrong on this one.
So my questions are:
- Do I have to collect the peppercorn rent?
- Is requesting the rent enough?
- If the tenant tried to claim ownership of the garage in court, would it go in my favour?