renting house to parent

benjo

I think what you are proposing might be considered a 'contrived tenancy' ie you didnt want rent from your mum while she had over £6k capital and wasnt able to claim housing benefit or LHA, but now that she is eligable to claim benefits you are contriving a tenancy agreement......

quoted from Shelter

"
The council will also want to check:

• that you're paying rent on a commercial basis. In other words, that it's a proper tenancy, not just an informal arrangement between family.
• that the arrangement has not been set up in order to take advantage of the housing benefit system - this is called a 'contrived tenancy'. For example, if your landlord only asks you to pay rent when you are not working (and so eligible for housing benefit), but not when you are working (and earning too much to claim housing benefit), this would be a contrived tenancy."

If this is the case, please be careful as the application for housing benefit/LHA may be considered as a fraudulant claim.

silvercar

Barneysmom wrote: »

This sounds like a huge scam to me. They want the council to pay their mortgage for them??

It's like if I sold my house and paid the buyer's mortgage, it's not right.

If you sold your house and rented it back from the new buyer, that is exactly what you would be doing.

steviegee50

my mum and dad were divorced . dad died 5 yrs ago and left a little money . me and my brother bought my mums council house with it . mum has never had more than £6000 in the bank and lives alone , before we bought the house im sure she was getting a rent rebate . theres no way we will put mum out she can stay there rent free for life but i just thought if we charged her £100 a month she would get help from the dss to pay .

silvercar

silvercar wrote: »

Happens all the time. Kids persuade Mum that she is sitting on a goldmine, or that she can pass them an inheritance that she wouldn't otherwise be able to do. They can buy property and let her live in it forever.

Then they realise that either they can't afford the mortgage or that if they want another mortgage for their own place they need to make this one a BTL deal. Either way poor mum can now help them a second time. On top of giving them a property she can pay her kids rent. No matter that mum has no income, if she was renting from the council the council will pay her rent so why not still let the council pay her rent?

In a minute OP will come back and say that they would never evict their Mum, they just thought that she could claim rent if she was entitled and that would help them with the mortgage.

steviegee50 wrote:

my mum and dad were divorced . dad died 5 yrs ago and left a little money . me and my brother bought my mums council house with it . mum has never had more than £6000 in the bank and lives alone , before we bought the house im sure she was getting a rent rebate . theres no way we will put mum out she can stay there rent free for life but i just thought if we charged her £100 a month she would get help from the dss to pay .

:pTold you so!:p

Robert_Sterling_3

Silvercar:A

mickey54

silvercar wrote: »

:pTold you so!:p

You are not legally able to rent a propery to a family member and claim Housing Benefit

Gorgeous_George

mickey54 wrote: »

You are not legally able to rent a propery to a family member and claim Housing Benefit

Oh yes you can.

GG

Robert_Sterling_3

A fight A fight. Can you or can't you.

FraudBuster

It is only the little people that get prosecuted,

Gorgeous_George

Robert_Sterling wrote: »

A fight A fight. Can you or can't you.

Depends what a propery is I suppose.

GG