Housing Benefit and letting to parents

DORA_THE_EXPLORER_2

hi my boyfriend would like to move in to the house and sell my flat. Im not keen.

Before they bought the house his parents had HB and CTB even though my boyfriend lived there and was working full time (i dont understand how this works)

How did they get the mortgage in the first place? My boyfriend was guarantor i think, but the council must have known his parents were unable to buy it. I think they were approached by one of those right to buy companys. I wish had never done this and i wouldnt have let him if i had met him before

If they cannot claim HB how will we get them rehoused we cant afford to pay mortgage and rent on sheltered accommodation. I dont think it will be easy to sell the house, next door has been up for sale almost a year... Can we sell the house back to the council?... thanks in advance

gravitytolls

They would qualify for housing benefit in sheltered accommodation. As you're planning on having a family, I think the best course of action would be to 'evict' the parents, rent out your flat, and live in the house. That way the folks are moved into a home where they are safe, you keep your own piece of security, and you raise a family within a home with a garden.

ianian99

so they get a cheap house from council and basically your asking for a way to get same council to pay for it?
Takes the p£$$ if u ask me

Oldernotwiser

DORA_THE_EXPLORER wrote: »

I dont think it will be easy to sell the house, next door has been up for sale almost a year... Can we sell the house back to the council?... thanks in advance

You might be able to sell it back to the council but surely, considering the discount he'll have got when it was bought, he should be able to undercut the other houses and sell it?

gravitytolls

Absolutely OnW. Councils do sometimes buy properties back, it's worth contacting them. In our area, once the initial 5 years is up before you can sell without repaying any discount, the rules state the council must be given first refusal at current market value before going on the market. Social housing is in such short supply. I guess for the very savvy there are ways to exploit this.

wrandall45

Surely if it is sold and it is less than 5 years since it was bought on discount, the discount-or part of it anyway- will be repayable.

krisskross

So if they had stayed renting the house they would have got housing benefit and council tax benefit. So housing would have been costing them nothing, All maintenance done free and in addition the council would have been more than happy to move them into sheltered accomodation now they need it. Plus of course freeing up a family home.

Completely the son's responsibility to ensure they still have a rent free home. He appears to be the only person likely to profit from the deal. I really don't see why the council tax payers should be expected to shell out, very cheeky really.

Oldernotwiser

krisskross wrote: »

Completely the son's responsibility to ensure they still have a rent free home. He appears to be the only person likely to profit from the deal. I really don't see why the council tax payers should be expected to shell out, very cheeky really.

I wasn't suggesting that he should be able to sell it back to the council at a vast profit, just that he might be able to solve the current problem by passing it back to them.

HaushinkaGreenDay

gravitytolls wrote: »

They would qualify for housing benefit in sheltered accommodation.

As I, and Lucia, said previously, this is only true if the Council decides that they no longer have the theoretical capital that they would have received had money exchanged hands when the son took over the property, which is unlikely considering the market value of the property at the time was probably a considerable amount of money.

It doesn't matter that no money actually changed hands.

Additionally, if the OP or her partner contribute towards any rent in any property in which the OP in-laws are claiming HB, that will be taken into account as income for HB/CTB purposes.

Any additional income or property/capital that any HB/CTB claimant has had recently MUST be declared, otherwise if the council find out later and it affects your entitlement (they do keep records of previous claims and RTB houses) you could be in serious trouble.

Another thought that has occured in relation to further info from the OP: was the council aware that your partner was living with his parents and working full-time? If so, I doubt that his parents would have been entitled to full HB/CTB due to the non-dependant deduction (ie they expect anyone living in the property on certain incomes over a certain age to contribute to the rent/council tax). There may have been an over-payment of HB/CTB.

I have to say that the OP's in-laws and/or partner should have been aware of the future effects on HB/CTB and their personal finances when buying a property; as anyone who takes on a large debt such as a mortgage should.

Haushinka

Oldernotwiser

HaushinkaGreenDay wrote: »

Additionally, if the OP or her partner contribute towards any rent in any property in which the OP in-laws are claiming HB, that will be taken into account as income for HB/CTB purposes.

I agree with much of what you've posted but there was a thread recently where someone claiming HB for rent whch was partially paid by the father. Several very knowledgeable members were absolutely certain that these payments were voluntary and wouldn't be counted as income. I don't know which of you is right.