Financing somewhere you can't get a mortgage on

leebee247

Hi there, I'm looking for some advice and hope this is the right place (sorry if it's not). Will try and explain this saga as clearly as possible!!! My disabled mum lives with me just now but has seen a place she wants to move to...it's a lodge in a holiday park so we can't get a mortgage on it. She's 62 so we have few hopes of securing finance in her name that makes any monthly payment affordable for her. So, I was wondering if I got the finance in my name (assuming the monthly payments were affordable, etc and bearing in mind I already have a substantial mortgage) then she moved in, would she technically be classed as 'renting' from me? If so, do you think she could claim housing benefit to help with the costs? We would hope to only secure the finance in my name but she'd want to pay the monthly costs herself.

Hope this makes sense...any advice/suggestions would be very much appreciated as she really does love the place we've seen and I'd love to be able to help her get it!!

Many thanks

Leebee

Jowo_2

Have you checked out whether this holiday park permits permanent year round living? I thought some have restrictions to ensure they didn't have people living there in a residential capacity.

Nonetheless, you'll find this link from Shelter helpful because even though its under the heading 'mobile homes' they do mention holiday parks.

http://england.shelter.org.uk/get_advice/finding_a_place_to_live/mobile_homes

See their info on HB for tenants who live in properties owned by relatives.

00ec25

If you live in a property owned by a family member and pay them rent, you may be entitled to housing benefit. 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.

leebee247

Thanks for the info...the holiday park does permit all year round residence...mum has friends who have just retired there and others who've stayed there for a few years now.

Regarding the tenancy...we would definately have a formal agreement and could only go ahead if mum could actually afford the monthly payment (along with other bills, etc). The decision to go ahead wouldn't be based on any ability to get housing benefit, I was just wondering if it may help her out if she can make a go of it.

Thanks again for the advice.