2 Lone Parent Families Renting Together - Good Idea?

JK_Parks

Hi I really hope someone can help.

My friend and I are considering the possibility of pooling our part time incomes so that we can co-rent a better house in a better area and give our kids a better life than they might otherwise have if we each remain in the individual, budget accommodation we currently inhabit - in a seriously bad area. I hope no one's offended by that - I've been dragged up in some of the roughest areas in Great Britain and it didn't do me any harm (twitch) - but when you're a parent yourself - if there is arguably a better way, you'd be mad not to at least try it.

We're both female (though heterosexual so cannot claim cohabitation in that sense) and because we're lone parents we are thus entitled to child and working tax credits and a certain amount of housing benefit. We both have part time jobs and we, particularly me, are looking at the option of going full time.

We have lived together before but in entirely difference circumstances (she was still married and getting no benefits and I was unemployed) so in terms of sharing and not murdering each other, we've shown we can do it. Our first and foremost concern is what we will lose in the aforementioned benefits if we do co-rent. We don't want to rip anyone off or get one over on the powers that be - we just don't want to be financially worse off for trying to give our kids a better shot!

Would it be more feasible for the home to go in her name and for me to legally sub-let - would that ensure at least one of us would keep most of our benefits? Or do the rules actually allow this to happen so that it wouldn't really affect benefits in many ways? I realise the latter is perhaps somewhat optimistic in its potential.

I wasn't sure which part of the forum to post this to so will add it to the benefits one also. Any help, advice or general thoughts would be greatly appreciated!

Many thanks,

JK

LydiaJ

Hi JK Parks

I don't know about the situation with housing benefit - I don't qualify for that. But I do get working and child tax credits, so I know what it says on the forms about those.

If you and your friend have a joint tenancy, then I can't see that your tax credits would be in any way affected. The WTC and CTC forms don't ask you for any information about your housing costs, or about your living arrangements. The only thing they say is "You must tell us if you marry, or if you start to live with someone as if you are married" which wouldn't apply to you and your friend.

On the other hand, if the tenancy was just in her name, and you sub-let from her, then the rent you paid her might count as part of her income, and therefore decrease her tax credits. But then again, it might not. I don't know, and you'd need to find out.

I hope someone will be along soon with some info about housing benefit, because of course you'll need to weigh up all your different benefits before deciding what to do.

HTH,
Lydia

Zelie

I can confirm that your tax credits will be unaffected. I used to work for them but you can give them a ring and enquire just to put your mind at rest.

What you are suggesting is not a change in your family circumstance. Your friend will not become a member of your family because you are just friends and not romantic partners. That's an easy enough concept to grasp. Now take that concept and instead of the word 'family' put 'household'. Although you will be sharing the same house you will not be the same household. You will be two separate households with separate finances and you will just happen to be sharing a physical space.

I suspect the same will be true of other benefits.

One thing to consider is that you will possibly be double-checked by the various compliance departments as multiple claims will be originating from the same address. With that in mind it is important to be able to prove that you each definitely live there and each definitely have financial responsibilities there. I would suggest a shared-tenancy rather than one person subletting to the other. The reason for this being that the sublet might not be permitted by the landlord and so the person subletting could not provide a valid lease to claim certain benefits. Another reason for not doing it is that the person trying to do the sublet would have to show the other person's share of the rent as income and that might adversely affect their benefits.

Other than that, it seems a great idea.

seven-day-weekend

Agree with others and I too think it would be a great idea.

Be sure to keep your finances totally separate so that it can be seen to be obviously a house-share and not co-habitation.

izzzzythedog

what do the kids think ? do they get on and will they lose the normal love off yourself if you have the responsibility of looking after a bigger brood , will they feel left out and is it fair on them to try communial living , sorry to have to put it this way , i couldnt think of a nice way of asking so thought id just blurt it all out , im just thinking outside the door it will be a better place but will it be better indoors ? i do hope it works out , ive escaped from a dump also so all the best

mlz1413

I've no knowledge of benefits but would think you will need a joint tenancy so that you are both protected, if just one of you was on the tenancy then that person has all the rights and so could insist the other one moves out - not saying it will happen just pointing out a circumstance.

Also you should check if you need the utilities in joint names or if you can pay one each.

On a long term point of view how long do you expect to live together? 1yr, 10 yrs, until the kids move out? Have you discussed what happens if one of you meets a new partner? you need to write down how things will be when you live together and when you leave the situation as you will be moving to a place neither one can afford on their own.

Also if you have one child each are you hoping to live in a 3 bed or 4 bed house - ie will children have a room each or be sharing? Are the children the same age and sex?

Strapped

Sounds like a reasonable plan to me, but as others have already pointed out, you will need a written contract between you spelling out how/when the arrangement can be terminated, particularly if one party wants to leave (new partner or whatever).

mitchaa

In the short term good, but over the longer term?

Surely you are not both going to stay single for the rest of your days? What happens when 1 of you meets a partner, wants to bring him home for some nukie? Not fair if there are kids around.