Residential lease to occupy - tenant refuses to pay

[ShoreBoy]

We bought a property 5 yrs ago, valued at $320k, for $130k on the condition that the vendor lived at the property rent free (until he died) under a lease to occupy agreement. He is 72. The agreement included clauses that he should pay all outgoings (except insurance) and allow us reasonable access. We were recently served with final demands of about $4.2k for unpaid rates, etc. He conveniently pays the water, 'phone and electric bills but ignores the "non essential ones". We have been unable to access the house for nearly 4 yrs as he refuses. I am concerned that it has deteriorated as we received negative comments via a valuation 3 yrs ago.

The District Tribunal awarded us the costs and the 30 days for him to pay expires tomorrow. I do not expect any success from appointing bailiffs as he clearly does not want to pay or allow us access to the property. He alleges that "even the armed offenders squad would not get into the property".

Whilst I accept that we got a good deal at the time, I am not convinced that our "investment" was such a good one now. Having re-read the agreement (which a solicitor drew up) we do not have too many remedies. Surely, the law would allow us to terminate the agreement by giving reasonable notice?

Does anyone have a similar example of a lease to occupy going pear shaped please?

[Dean@Massiveaction]

I have a few of these, just wait till he dies. Why stress??

[ShoreBoy]

Thanks Dean. Unfortunately my wife is stressing, which often results in me getting the after effects! We want to gain access to see how well he is maintaining it as I suspect that as he is unemployed/retired he is not maintaining it. We also would like a valuation to be able to refinance. We have good equity but due to other issues, cannot refinance. $4.2k is a lot to pay and we can expect more bills. I do not wish any ill health on anyone - but there are exceptions!

[SuperDad]

Why can't you access the property?

Is there something in the lease preventing you doing this? (I have never seen one of these before, so I don't know.)

Paul.

[ShoreBoy]

Thanks Paul/Super Dad.

Our "tenant" simply refuses us access. Entry is via the garage and his security is very tight with pin hole cameras everywhere - it's like Fort Knox. He refuses to meet with us and also refuses to answer correspondence and phone calls. He really is a pain in the a%%e.

The agreement clearly gives us the right to reasonable access but he refuses to accept that.

He has told us that we got a good deal (which I accept) and that he has no obligation to honour the agreement.

[Dean@Massiveaction]

You could simply enforce the agreement. Give him 10 day notice of an inspection and then get a locksmith to let yo uin and inspect. Just check with your lawyer on the legal details but if you have access in the LTRTO agreement this can be done.

[Green Fish]

Recent case on the subject:

http://jdo.justice.govt.nz/jdo/GetJudgment/?judgmentID=144083

[Viking]

Call the police and let them know that there may be hot house plants growing indoors.
They will visit.

[rueben]

Call the police and let them know that there may be hot house plants growing indoors.
They will visit.

Viking - Why on earth would you advise someone to give false information to the Police? Why would you want to waste Police resources and make a false complaint? Have you got any idea how much work it takes to get a search warrant together? Appalling advice! This guy may be unbalanced and have firearms and you have just suggested putting the Police going around there in danger by giving untrue and incomplete information.

SShoreboy if you think that his threats of "not even armed offenders would get in" is real and valid and you have reason to believe he has firearms and may be a threat to the public then a talk with the Police may be a prudent thing to do.

[ShoreBoy]

Thanks Rueben - our tenant is now telling us that he has a taser gun, Glock pistol, razor wire surrounding the house and even a warning that there is poisonous gas. So much for a peaceful neighbourhood!

I'm not sure if these are scare tactics but it does play on our minds a little.

[WBuffett]

I guess these are the risks in preying on senile old people offering them ridiculously low prices.

[ShoreBoy]

WBuffett - just for the record - it was he who approached us (not the other way round) and asked for $130k on the understanding that he would live there rent free.

What would you do if someone offered you a property, worth $320k for $130k under these conditions?

[WBuffett]

WBuffett - just for the record - it was he who approached us (not the other way round) and asked for $130k on the understanding that he would live there rent free.

What would you do if someone offered you a property, worth $320k for $130k under these conditions?

I would tell him to speak to a lawyer/valuer/children/family/doctor or somebody independent, morally I could not take advantage of a senile person like that.
Some might say you were doing him a favour, helping him out, that is one way of looking at it.

[ShoreBoy]

Thank you for your comments WBuffett. As you decided to make such a sweeping conclusion without asking for (or knowing) the facts, you may like to know that he did consult a solicitor. And he approached us with this deal - NOT the other way round.

Are you suggesting that all 66 (as that was his age when he approached us) year olds are senile? I'm sure that there will be many people of this age who would resent your comments.

[One]

Description of offensive weapons sounds to me like he's threatening you. Given that, I'd give the cops a call. I certainly wouldn't turn up with a locksmith - he may be all talk but why take the risk?