housing benefit if related and used to own

RDB

I have bought a house off my father that he was renting to tenants for over 10yrs, they have given notice to move out now.

My parents do qualify for Housing allowance and would like to now rent it off me and claim housing allowance.

I know there are 2 problems that we are related and that they used to own it until a few months ago.

I dont mind paying for professional help if there is any way that they would be able to get LHA to live there.

Premier_2

teeni wrote:

remember that as well as the pitfalls relating to possible eviction and low valuation if you are considering paying the rent with the help of housing benefit you are not entitled to claim housing benefit for a property that you have previously owned for a period of 5 years.

teeni

http://forums.moneysavingexpert.com/showpost.html?p=8249031&postcount=9

Oldernotwiser

RDB wrote: »

I have bought a house off my father that he was renting to tenants for over 10yrs, they have given notice to move out now.

My parents do qualify for Housing allowance and would like to now rent it off me and claim housing allowance.

I know there are 2 problems that we are related and that they used to own it until a few months ago.

I dont mind paying for professional help if there is any way that they would be able to get LHA to live there.

Presumably your father will still have the money that he received from you for the sale of the house which is likely to make him ineligible for LHA. If he's disposed of this money then he will still be ineligible under the deprivation of capital rules. You're getting very close to asking for advice on benefit fraud!

margaretclare

If he owned it and wanted to live in it, why didn't he choose to live in it rather than selling it to you?

Or is that too simple and obvious?

RDB

Oldernotwiser wrote: »

Presumably your father will still have the money that he received from you for the sale of the house which is likely to make him ineligible for LHA. If he's disposed of this money then he will still be ineligible under the deprivation of capital rules. You're getting very close to asking for advice on benefit fraud!

He couldnt aford the mortgage I helped him out. He has no money at all, and is curently on LHA in a small place in the country, but they have health problems and want to live nearer the town.

krisskross

RDB wrote: »

He couldnt aford the mortgage I helped him out. He has no money at all, and is curently on LHA in a small place in the country, but they have health problems and want to live nearer the town.

How much did you pay him for the house? Why doesn't he have any money? All sounds most odd.

emsywoo123

krisskross wrote: »

How much did you pay him for the house? Why doesn't he have any money? All sounds most odd.

KK, we have clashed a few times, but I completely agree with you on this:D Odd is the word!

Oldernotwiser

Selling your house to a relative for under market value also counts as deprivation of capital.

Reading your other posts, you always seem to have some dodgy idea or other on the go. I think that this one is going to backfire in your face!

margaretclare

Oldernotwiser wrote: »

Selling your house to a relative for under market value also counts as deprivation of capital.

It may not, we did the same thing in 1990, but then none of us was planning to claim any benefit or allowances. There were good reasons why we did it.

Oldernotwiser

margaretclare wrote: »

It may not, we did the same thing in 1990, but then none of us was planning to claim any benefit or allowances. There were good reasons why we did it.

I don't think that this is the same here; there's some very devious goings on in the background, if you read earlier posts.

Ditzy_2

This will be deemed as a contrived tenancy - you cannot get LHA for relatives that own property you intend to rent.

ie your father will not get LHA for a property that YOU own!
Local Authorities are not in the interest to be paying for your mortgage to house your father.