Helping Mum move out 12 March 2006 at 10:25PM in Over 50s MoneySaving 7 replies 1K views

SaveMe2

Hello, I am looking for some advice regarding my soon-to-be 65 Mum. Following an unsuccessful relationship 6 years ago she moved into her Brothers house (who is 63 years old). She would like to move out and be independent and a couple of years ago registered with the local council for housing, having scored low (because she has a roof over her head) she is unable to move.
Financially she receives £107 per week (£82 pension, £25 work). Last year she lent me £10000 to pay off debts and she has £5000 in Premium Bonds remaining (total savings). No other assets exist.
My question is if she moved out to a private rented place would she be entitled to any help or would it be viewed as just moving out for the sake of it (her current arrangement is causing her to be depressed). Should she move out what limits are there on the benefit? minimum 1 bed flat is about £450/month rent (her total income is less than that).
Alternatively could I have a Buy-to-let mortgage and just charge her the amount to cover mortgage payments? (unfortunately I'm not in a position not to charge her). What would she be entitled to under these circumstances? I believe there are rules about renting to close relatives and benefits.
Your help on this matter would be greatly appreciated.

cattie

If your mum moves into a rented flat then she should qualify for housing benefit & council tax benefit.

You can find out what help may be available to your mother here http://www.entitledto.co.uk/

Most councils have a maximum amount that they will pay in HB, & you should ask your local council what this is.

You can also get advice re housing from Shelter http://england.shelter.org.uk/home/index.cfm/setcountry/true/

As she is over 60 she may have more luck with council/housing association housing if she puts her name down for sheltered accomodation.

Ted_Hutchinson

DWP - Advisers - Technical guidance - RR2 - Housing Benefit
... You cannot claim HB if you live in the same dwelling as your landlord, and they are a close relative of you or your partner
DWP - Resource centre - Information for local authorities - Publications - Guidance and ...
... 3.31 - Landlord is a close relative ... 3.32 - Definition of close relative ...

Contains_Mild_Peril

She wouldn't be likely to qualify for sheltered accomodation at her age unless she has relevant health problems or something.
I think it's OK for relatives to charge reasonable rent on dwellings where they themselves don't also live, but the rules are ridiculous. My brother got refused HB to share a flat with my sister, although she couldn't afford to pay the rent herself, and he'd have been entitled to it if he wanted to flatshare with a stranger.

margaretclare

Contains_Mild_Peril wrote:

She wouldn't be likely to qualify for sheltered accomodation at her age unless she has relevant health problems or something.

I disagree - it depends on the area and how much demand there is for sheltered accommodation, in some areas it's possible to get sheltered accomodation in your 50s! At age 65 she certainly qualifies. It would be a good idea for your Mum to enquire of the council Housing Dept and see what they say. There'd be rent to pay, but if she only has basic pension income then she'd likely qualify for housing benefit. The £5000 savings is well below the limits for getting help from the DWP so she'd be OK there.

Best wishes

Aunty Margaret

cattie

margaretclare wrote:

I disagree - it depends on the area and how much demand there is for sheltered accommodation, in some areas it's possible to get sheltered accomodation in your 50s!

Aunty Margaret

Yes Aunty Margaret, I agree, it's possible to register for sheltered accomodation in my borough if you are over 50.

Apart from local councils there are many housing associations & charitable trusts providing sheltered accomodation for people aged 55 & over.

Have a look here to get an idea of one of the schemes for over 55's.http://www.anchorhousing.org.uk/what_we_do.html

SaveMe2

Many thanks for you valued comments; Having looked at some of the quoted links I see a potential of 'buy-to-let' though there seems to be grey areas in relation to housing benefit as stated. For example;

'3.31 A claimant who rents their accommodation from a close relative but does not reside with the relative, does not fall foul of this particular provision. However, consider other aspects of the arrangement, as it may seek to take advantage of the HB scheme, and fall foul of regulation 7(1)(l). But remember, it may be a perfectly normal tenancy created without any intention of abusing the HB scheme.'

We definitely wouldn't want to go down this route if there was any contention, how is it decided who is taking advantage? could this change every year? though if she rented from any other landlord I feel she wouldn't be able to afford it even with HB.

Kind Regards,

alikat_3

I also wonder, if as you say your mothers present situation is causing her to be depressed, that a letter from her GP to her Local Housing Authority might score extra points & enable her to be rehoused more quickly.