Can we claim Housing benefit if brother is the landlord?

sarahjessica

Hi everyone.

My brother in law is looking to buy a property in mine and my partners area (he doesnt live in the area, and wants to buy out of the area that he lives because the houses there are too expensive).

Me and my partner have a child under three. We are looking to rent somewhere and his soon-to-be house for rent seemed perfect.

As we are low earners and I am a full time student, we would be eligible for Housing Benefit. My brother in law is buying the house purely for investment, and we need a place to rent. Would it be possible to claim HB, or is the fact that he is a relative mean we are not eligible to it?

How do you prove that what we are doing is not abusing the system?

All help would be great.

Cheers, Sarah.

notlongnow_2

Hi Sarah, I believe it is very hard for you to do this. The house has to be shown to be available for other tennants to rent it.

As he is your BIL he wont have the same surname as you but please be careful if you attampt to do this as there will always be some way that you can be checked up upon.

Oldernotwiser

You can rent from a relative as long as it is a genuine and not a contrived tenancy - the market rent must be charged and a proper rental agreement drawn up.

Don't forget that your applicable LHA amount will be for a 2 bed property and that any student finance which you're eligible for will be used to assess you.

Kentmumof1

hi,
it shouldn't be a problem, i rent a property of my parents and receive housing benefit. I went to through all the proper channels first to the citizenz advice adn then the hosing office, as long as its all done properly then there is not a problem.

seven-day-weekend

My son once claimed housing Benefit when he lived in a flat that we owned. We had to provide him with a proper tenancy agreement, charge him a market value rent and also prove that it was a commercial tenancy . This we did by providing evidence that the flat had been available to rent on the open market (letter from Estate Agent stating this).

If your b-i-l has a buy-to-let mortgage, this would also prove a commercial tenancy.

sarahjessica

Thanks everyone for your replies.

1) He would be charging us full rental value.

2)I dont get any money or have overdrafts/loans etc for being a student.

3) Where do you get tenancy agreements from?

4) How much different is a buy to let mortgage from a 'normal' mortgage?

5) It is a 3 bed property, but our LHA says we only need 2, does this effect anything?

Any help would be great, thanks again everyone! :T

Sarah x

Vader123

sarahjessica wrote: »

Hi everyone.

My brother in law is looking to buy a property in mine and my partners area (he doesnt live in the area, and wants to buy out of the area that he lives because the houses there are too expensive).

Me and my partner have a child under three. We are looking to rent somewhere and his soon-to-be house for rent seemed perfect.

As we are low earners and I am a full time student, we would be eligible for Housing Benefit. My brother in law is buying the house purely for investment, and we need a place to rent. Would it be possible to claim HB, or is the fact that he is a relative mean we are not eligible to it?

How do you prove that what we are doing is not abusing the system?

All help would be great.

Cheers, Sarah.

As long as its at market rate, with a written rent agreement (where bro pays tax if applicable) and available to others, you will be fine.

For example, would he rent it to me for the same rent?

Thats the type of questions and proof you will be asked.

Vader

Oldernotwiser

sarahjessica wrote: »

5) It is a 3 bed property, but our LHA says we only need 2, does this effect anything?

It means that the LHA won't cover the full rent for the property as the rent for a 2 bed will be less than that for a 3 bed.

DX2

sarahjessica wrote: »

5) It is a 3 bed property, but our LHA says we only need 2, does this effect anything?
Sarah x

The LHA will only pay for a two bed you will have to make up the difference yourself.

seven-day-weekend

sarahjessica wrote: »

Thanks everyone for your replies.

1) He would be charging us full rental value.

2)I dont get any money or have overdrafts/loans etc for being a student.

3) Where do you get tenancy agreements from? From WH Smith and other large stationers, or have one drawn up by a solicitor, or look on www.landlordzone.com

4) How much different is a buy to let mortgage from a 'normal' mortgage? Usually more deposit required and a slightly higher interesrt rate. Howevre, he may be able to get a 'consent to let' on a residential mortgae, although if he is buying the house solely to rent out it really should be a btl.

5) It is a 3 bed property, but our LHA says we only need 2, does this effect anything? They will only pay rent applicable to a two bedroom.

Any help would be great, thanks again everyone! :T He will also need Landlord's Insurance and a Gas Safety Certificate.

Sarah x

See my answers above in blue

sarahjessica

Thanks for all your replies, they have been very helpful.

I am a student, and study 10 hrs per week.My partner works over 20 hrs p/w. I also have a child under 3, does any of this affect our right to housing benefit?

Thanks again, Sarah x