Charging mother rent...........

ess0two

Sounds like a good scam to all intents and purposes.

tbs624

Captain_Mainwaring wrote: »

And your point is? two completely different contexts.

:rolleyes: Your possible hypocrisy is the point CM. The contexts aren't that different - both people letting/intending to let one property but not knowing much about the full process, and the OP wasn't asking about tax matters in either thread. Clearly one is a scenario that you felt sympathy for/identified with and this is one that you don't.

Captain_Mainwaring_2

tbs624 wrote: »

:rolleyes: Your possible hypocrisy is the point CM. The contexts aren't that different - both people letting/intending to let one property but not knowing much about the full process, and the OP wasn't asking about tax matters in either thread. Clearly one is a scenario that you felt sympathy for/identified with and this is one that you don't.

Two completely different cases.
(as you well know)
First is a BTL'er who (however misguided he may be) wants to know about his responsibilities.
Second is someone who is happy to rob (and that is how many see it) the benefits system, not content to just take a profit out of a cheap house.

Captain_Mainwaring_2

ess0two wrote: »

Sounds like a good scam to all intents and purposes.

As I've suggested, poke granny in the eye with a blunt stick and let her fall down the stairs, you could probably get double bubble benefits, not to mention a bit of carers allowance.

silvercar

This is obviously cheating the system. The system was designed so that people could buy their own homes.

OP took it one step further and bought the Mum's home in theMum's name then transferred it to their own when the payback period ended.

Now wants to try and take it another step, by charging mum rent for living in what should be her own home.

People complain (on here) that BTLers are to blame for house prices increasing, for dodgy landlord pracitices, for reducing housing stock and every evil imaginable, but suddenly it is OK to charge your granny rent, its OK to reduce the council housing stock, its OK to let the benefit system pay ficticous rent for a property that you used your relatives to make a quick buck out of.

sirmyser

I took the direct approach to this problem, and approached the council 'directly'. There is a housing information department in my city, seperate to the council but linked if you get my drift. The main issue is that you do not want to make an application that will in any way break any laws or cause relatives any uneccessary grief. I explained this to them and they 'got the book out' and made some calls to the HB dept. The information I gave was recorded and I did sign for it (thus giving you proof that you are/were acting under advice). The bottom line, as I understand it (council's may vary) is that it must be done on a commercial basis, with an assured shorthold tenancy agreement. The property owner (as a relative) will more than likely be subject to checks relating to current address and situation. A commercial business address may carry more weight... I am submitting my application on this basis, After all I am doing so under their advice with full transparency. It is also the case (I have heard) that they may only pay the equivalent of the interest on any loan secured against the property, either way expect some 'haggleing' if there is a relative involved.

I suspect this type of situation will become more commonplace, due to the state of the buy to let market, government house building targets not being met, and the general rate of immigration over the last few years. Things are tight for many people, and I suspect it's going to get worse. If people are in genuine need of housing, and the claims are genuine, then there shouldn't be any issues.

margaretclare

I suspect this type of situation will become more commonplace...

What situation, exactly?

I was thinking of this when talking to my eldest GD over the weekend. She lives in a one-bedroom council flat. Barring extreme circumstances, she can live there for as long as she chooses, given that she pays her rent and doesn't indulge in any antisocial behaviour (in fact, as she works for the council, her rent and council tax are taken from her salary before she sees it).

At one stage I thought of helping her to buy this little place, which she regards as her domain, her palace. With the state of the housing market and property values dropping all the time, I think she'll be as well to stay exactly as she is. She is one of the most secure of all 'secure' tenants, given conditions described above.

I am not too sure why anyone should think of buying parent's house, except with the idea of 'making a fast buck' by using the discount available and then treating it as an 'inheritance'. Parent will be like my GD, with one of the most secure of all secure tenancies. They have it for life, or as long as they need/want it. Repairs done as required. If inadequate income after retirement, HB and CTB available. No benefit at all to parent in becoming a tenant of son or daughter, in fact quite the reverse.

Threads like this do highlight the pitfalls in what might seem like a good idea. If I was a council tenant no way would I agree to any family member 'buying the house off me'. Perish the thought.

sirmyser

The situation that I was referring to, more specifically is where an increasing amount of people are in reciept of help/assistance from relatives. This (in my opinion) is due to the combination of the lack of housing, high house prices for the younger generation (also stricter mortgage criterion now) and the increase in buy to let investment properties, (an area of the market now in trouble).

My main comments relate to eligibility of housing benefit, and not so much any 'investment' that may or may not have been made in the mothers house.

To re-iterate, if you approach the relevant department, with total transparency then the worst that can happen is that they can say no...

For example: http://www.whabac.org.uk/ - they answered all my questions, and gave me the necessary documentation. You may have a similar organisation near you.

I hope this is of some use.