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renting house to parent

13

Comments

  • silvercar
    silvercar Posts: 49,750 Ambassador
    Part of the Furniture 10,000 Posts Academoney Grad Name Dropper
    You can if it is a proper agreement and not contrived just to get HB /LHA. There may be more restrictions if you are trying to claim HB on a property that you used to own.

    I would think that one of the tests would be whether someone has owned the property outright previously and has then lived there rent free.

    Of course a true test of whether the tenancy is contrived is whether the landlord would evict the tenant if the tenant failed to pay the rent. I doubt the council go that far.

    As far as the amount of rent, why stop at £100? See what the LHA is for the area (1 bed rate for a single person over 25) and charge that.
    I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
  • real1314
    real1314 Posts: 4,432 Forumite
    A fight A fight. Can you or can't you.

    You can. There is nothing in the HB regulations that refers to renting a property from a family member (although there is stuff in there about claiming for rent whilst living with a family member).:confused:

    In this case though, it would most likely be seen as a contrived tenancy as the liability to pay rent has only been created to obtain benefit. They would probably ask for details of the rent paid since the sons bought the property and may well ask for evidence of tax returns made declaring the rent as income in order to confirm that rent has always been paid.:D
  • A fight A fight
    Can you or can't you

    The answer seems to be:-
    Yes you can but then again no you can't

    So fight on.
    ...............................I have put my clock back....... Kcolc ym
  • steviegee50
    steviegee50 Posts: 16 Forumite
    edited 6 April 2009 at 3:30PM
    benjo - mums never had more than £6000 in the bank . she was getting HB before we bought the single bedroom ground floor flat now she isnt paying anything so instead of council paying HB me and my brother are in theory paying it , just wanting to know if it was legal for the council to start paying it again if we charge mum rent .

    Mums never worked for years an has had angina for the last 20 years my brother has been told that she could have been claiming for having angina which we never knew.So the moral of this story is theres lots of things that you can claim for that you dont know about and all im doing is seeing if mum can claim HB if we start charging rent
  • tbs624
    tbs624 Posts: 10,816 Forumite
    No, the moral of this story is that some folk want to thoroughly "milk the system". Sorry steviegee- this stinks IMO. What you are proposing is clearly a contrived tenancy.

    Presumably, you bought "mum's house" at a massive discount (as Mum couldn't afford to make the purchase herself ) & you were hoping to get a good capital return for yourselves on the property? Now you want the state to contribute towards your mortgage, as Silvercar says.

    You may like to know that lots of people who have angina manage to work too......
  • margaretclare
    margaretclare Posts: 10,789 Forumite
    tbs624 wrote: »
    No, the moral of this story is that some folk want to thoroughly "milk the system". Sorry steviegee- this stinks IMO. What you are proposing is clearly a contrived tenancy.

    Presumably, you bought "mum's house" at a massive discount (as Mum couldn't afford to make the purchase herself ) & you were hoping to get a good capital return for yourselves on the property? Now you want the state to contribute towards your mortgage, as Silvercar says.

    The 'massive discount' was because of Mum's RTB. Not yours - hers.

    You may like to know that lots of people who have angina manage to work too......

    Yes, they do. Few of us reach middle life without developing some darned thing or other. Angina is manageable with medication.

    I heard this at lunch-time today - very interesting. http://www.bbc.co.uk/radio4/youandyours/items/03/2009_14_mon.shtml
    [FONT=Times New Roman, serif]Æ[/FONT]r ic wisdom funde, [FONT=Times New Roman, serif]æ[/FONT]r wear[FONT=Times New Roman, serif]ð[/FONT] ic eald.
    Before I found wisdom, I became old.
  • steviegee50
    steviegee50 Posts: 16 Forumite
    Yes, they do. Few of us reach middle life without developing some darned thing or other. Angina is manageable with medication.




    she is on medication but at 75 dont think much employers will take her on
  • steviegee50
    steviegee50 Posts: 16 Forumite
    tbs624 - can i or cant i .
  • silvercar
    silvercar Posts: 49,750 Ambassador
    Part of the Furniture 10,000 Posts Academoney Grad Name Dropper
    I think you would be better off asking the HB people. Get your Mum to phone up and make a claim, honestly declaring that the landlord is her son, see what they say.

    They will either accept it or say it is a contrived tenancy and reject it. Nothing to lose. If you are going to do it, you may as well set the rent at the LHA one bedroom level.
    I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
  • real1314
    real1314 Posts: 4,432 Forumite
    silvercar wrote: »
    I think you would be better off asking the HB people. Get your Mum to phone up and make a claim, honestly declaring that the landlord is her son, see what they say.

    They will either accept it or say it is a contrived tenancy and reject it. Nothing to lose. If you are going to do it, you may as well set the rent at the LHA one bedroom level.


    To be completely honest she would also have to declare that she had not paid, nor been required to pay, and rent for the past 4 years and that son now wants to charge rent.
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