Paying 6 Months Rent In Advance - Housing Benefit...

[petridish]

Hello, i've had lots of help regarding previous problems but i have had enough of my landlord refusing to get work done to my rented house so i desperately want to move out. I've got my eye a few properties but none of the landlords will touch me with a barge pole since i don't have a guarantor and i receive housing benefit (am single mum to a baby at the moment but will be going back to work within a year).

I have no one that i can persuade to be a guarantor but my father has offered to lend me 6 months rent in advance to try and sway a new landlord. The condition of it is that i pay it back as soon as possible. When i return to work i will be in no position to pay twice as much rent each month so the only way to do it would be to continue claiming HB when i move in (which i would be doing anyway if i could find a LL to accept me without a guarantor!!) and then give my father the rent money each month.

Is this allowed?? Would i need to inform the council about this or should i just not mention it? And would my tenancy agreement state that i've paid 6 months up front (in which case im assuming they wouldn't give me HB?)

Hopefully someone will know!! Thanks in advance

[BitterAndTwisted]

The entitlement to housing benefit (or LHA: Local Housing Allowance) is based on your declared income, not on loans from family or any savings you might have up to the maximum limit. In your case I don't see how a loan from your father could affect your entitlement to LHA even if there was mention of it in the tenancy agreement. but you must bear in mind what your local authority's maximum LHA might be for someone in your circumstances. I suggest you do this so that you can ensure that you don't take on a property with a rent in excess of the allowance or you'll have to make up the difference yourself. I'm not certain whether with a baby you can claim the rent-level for a one or two-bed property so you should most definitely check that.

[Morglin]

I don't think you will have a problem with this, as the money your father is lending you is basically a guarantee/deposit to secure a tenancy, and LHA/HB is paid on the basis of weekly income, not loans etc.,

However, I would advise the Housing Benefits department what you are doing, so that there is no future query/problem.

Some councils have schemes where they guarantee the rent etc., to private landlords, and hold lists of LL's who are happy to accept tenants on LHA - so it might be worth asking about this, as well.

You can check here what you would be entitled to in respect of LHA and type of accomodation:

https://lha-direct.voa.gov.uk/Secure...hType=PostCode

Lin

[tbs624]

If your father is willing to loan you the money upfront, have you already checked whether he could possibly act as your guarantor?

[BitterAndTwisted]

Maybe Dad isn't in a position to help any more than he has offered to already? Six months rent as a loan is very generous but a future, possibly unlimited liability might not be acceptable. Goodness knows we've seen enough horror-stories on here from people who have found out the hard way about signing up to such agreements. It's not one I'd take lightly, even for someone I trusted implicitly.

[StarvinMarvin]

Does anyone know if the information given to petridish proved to be correct? I ask as I find myself in a very similar position (6 months rent paid up front, borrowed from Father-in-law, just been made redundant and now need to claim HB for me and my family). Hopefully Morglin's got it right in that the borrowed money was essentially a large deposit...it still needs to be paid back to FIL.

Thanks in advance. :-)

[HappyMJ]

Originally Posted by StarvinMarvin

Does anyone know if the information given to petridish proved to be correct? I ask as I find myself in a very similar position (6 months rent paid up front, borrowed from Father-in-law, just been made redundant and now need to claim HB for me and my family). Hopefully Morglin's got it right in that the borrowed money was essentially a large deposit...it still needs to be paid back to FIL.

Thanks in advance. :-)

You should be able to claim housing benefit.

[BitterAndTwisted]

You should be able to claim LHA but the amount your Local Authority is prepared to pay is dependent on your particular circumstances. If you're single and under 35 years of age it will be a whole world away from what it might be if you are a couple with seven kids.

I suggest you check your Local Authority's website and see what they currently pay because they may not pay all of your current rent and then you will have to make up the difference from whatever income you do have. You entitlement is based on their decision about your "need" rather than the actual rent, so a couple with two kids would need a property with two bedrooms but that might not help you much if the property has four, except if it was remarkably lower than the average rent in your area.

You will be entitled to something and it's rarely back-dated so get on with your application tout ruddy suite.

[StarvinMarvin]

Originally Posted by BitterAndTwisted

You should be able to claim LHA but the amount your Local Authority is prepared to pay is dependent on your particular circumstances. If you're single and under 35 years of age it will be a whole world away from what it might be if you are a couple with seven kids.

I suggest you check your Local Authority's website and see what they currently pay because they may not pay all of your current rent and then you will have to make up the difference from whatever income you do have. You entitlement is based on their decision about your "need" rather than the actual rent, so a couple with two kids would need a property with two bedrooms but that might not help you much if the property has four, except if it was remarkably lower than the average rent in your area.

You will be entitled to something and it's rarely back-dated so get on with your application tout ruddy suite.

Thanks again BAT. I'm married with 2 kids living in a modest (2 bedroomed) bungalow and the claim is being filled in as we speak! I was made redundant on the 30th April and the claim starts from the 1st May as that's when the LA were first contacted. We have no savings, but can make up the difference between the rent and our LHA (temporarily) from selling some belongings on eBay, getting rid of a car etc. The shortfall is about £200 a month, so that can't last forever...but then I hope my position won't either!

I just wanted to be sure that the LA understands what my FIL did through lending money for the first 6 months up front was in no way a 'gift'...it's not! The reason we had to ask this was precisely as you said above...I'd been made redundant previously and was entering a new job with uncertain prospects and he did not want the liability of being a guarantor for an indefinite period, which was fair enough. Unfortunately, we find ourselves in the same situation - yet again - but with this added complication of not actually paying our landlady rent, but - in essence - my FIL. Really hope the LA views it as such or, well, I don't know what will happen actually.

[BitterAndTwisted]

You might not, but I do. The loan from your FIL to pay your rent in advance is irrelevant. Just get that claim in asap and I wish you the very best of luck with your job-searching.

[StarvinMarvin]

Originally Posted by BitterAndTwisted

You might not, but I do. The loan from your FIL to pay your rent in advance is irrelevant. Just get that claim in asap and I wish you the very best of luck with your job-searching.

Thank you!

[LoopyLu]

We paid 6 months upfront with a loan from a relative - we get LHA. It even stated on the AST that we paid upfront. I actually asked the exact same question here myself 3 months ago lol!
Good luck!

[deannatrois]

Petridish.., be careful. I am aware u say u will be working within the year.., but that can't be guaranteed, even with the best will in the world. And if you work, u have to take into account the increased costs of child care, increased transport costs when calculating how to pay your father back. Also, if you are moving furniture etc, moving costs can be quite difficult to budget for on benefits (been there, done it).

U say your father will lend u six months rent .., but wants it paid back (over what term?). Think about it.., u are dependent on benefits right now.., and will have to use your benefits to pay off your father.., and possibly save up another six moth's rent in advance. It will be like paying rent twice.., out of benefits. Although u will almost certainly get LHA for half of that (although u may have to top it up depending on any difference between rent and LHA awarded).

Be careful. I'd advise, however much u want to move.., it might be best to wait for a while as finding a landlord who will accept benefits is difficult. I had problems even with my council giving me a loan for the first month's rent and deposit. And I also have a landlord who won't do much in the way of repairs etc.., but I am able to do most things myself, accept that at this level of rent its just the way life is.., at least I have a roof over my head and I didn't a year ago!

I know its not 'fair' but assess the risks very carefully. With benefits, u have to assess risks on the basis of 'what's the worst that can happen' because unfortunately, worst can and does happen and with no spare money, worst can be quite difficult to climb out of. However much you want to move, however much its annoying to be treated like a second class citizen because you are on benefits.., assess the risks in your plans carefully. It can actually get worse. I am sorry to be defeatest.