Callum Adams told Nottingham Crown Court how Smith had been in a financial mess following the break up of his relationship with Adam Dixon at the end of 2006.

Mr Adams lived with Smith –– who denies brutally killing neighbour Hilda Owen between 26th February and 1st March 2007 –– at his West Hill home between 21st December 2006 and 21st February 2007.

He told the court: "With Adam Dixon leaving, Peter was in a financial mess with the mortgage payments, payments for his motorbike and all the other bills.

"Adam Dixon paid the mortgage while Peter was responsible for the other bills. He told me he would not be able to keep up all these payments on his own."

Mr Adams also went on to describe how Smith would have benefited in Hilda's will:

"On 19th February he returned home with a homemade will kit. He told me it was for Hilda to sign over her possessions so if anything happened to her he would get her house.

"He was also interested in having the power of attorney over Hilda and had researched this topic on the internet."

Case continues.

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