Help - Benefits & Gifts query...

blueshed

details removed

Mental_Mentor

Sounds very clever to me. What the HB people don't know won't hurt them. If your partner has a different surname then they shouldn't make the link that you are related.

You are not getting a BTL mortgage so I think this should work OK.

mountainofdebt

I might be worrying her BUT

what happens in the event that you and your partner split up ????

Why don't YOU buy it and then rent it out to your mum??

I'm sorry but your plan has all the ingredients for it to, potentially, cause alot of heartache.

silvercar

You need to take advice on this. If you and your partner split up, you would have no claim on the house and he could evict your mother. You would be left with a large mortgage and your mother would be homeless.

seven-day-weekend

As far as I am aware, your mother can claim HB even if the landlord is a close relative, if it can be PROVED that the property was bought as an investment property.

This is what happened in our case, we bought a flat on a BTL mortgage and advertised it for rent. Before anyone rented it, my son asked if he could live in it. Then he became unemployed. He asked if he could claim housing benefit and was told that seeing as his landlord was also his mum, I wouyld have to probve that the flat was bought to run a s a rental business. I showed them the forms for the BTL mortgage and also the advertisement which the EA had done for rental. My son then got the HB.

However, I don't know if the law has changed, as this was a few years ago, or if it varies from Council to Council, so I would check first with your own council.

Also, be careful that your mother isn't classed as 'depriving herself of assets' if she gives you £30.000.... it may make a difference to her being able to claim HB, I think you should check this out too.

Hope this helps.

Dora_the_Explorer_5

Take advice from CAB or make a general enquiry with the council on Deprivation of Assets and Housing Benefit. HB people usually want to see bank statements etc which will contain details of the money going into and out of your mum's account.

clutton_2

i have heard of folks being refused HB because they spent all their money on debts-repayment. The council looked at it that they did not HAVE to repay, so they had deliberately deprived themselves of assets. But, individual councils do vary.

I dont mean to be in anyway unkind here, but, i do think we need to remember that HB is a benefit for those who cannot pay their rent - i wonder why if someone has the money to pay for their rent, why they feel it is right to ask for a benefit to do so ? Why not use her own money to pay for the rent till she is down to £16k and then apply for benefit ?

Astaroth

A gift of £30k would be seen as intentionally depriving yourself to claim benefits so if it was picked up on it would almost certainly stop any financially assessed benefits.

HB can be paid to a close relative but does require a lot closer look into affairs to make sure all is above board - this will probably show up the £30k con though.

Personally i would say that if you do go through with this that you need to get a solicitor to draw up a contract as to what happens to the property and your mother should you and your partner split/ you die etc.... I know it isnt a pleasent topic to consider but I am sure you wouldnt want your mother kicked out onto the street if you happen to fall out with your partner and decide you want out of the relationship

neverdespairgirl

I'm very sorry to hear about your loss. <hug>

itsgototstop

blueshed wrote: »

Just to update on events,

My mum sold the house, got 30k, but we couldn't find anywhere within budget to buy jointly so she stopped claiming benefits and privately rented instead.

All sorted except my siblings helped her spend the capital sum that was supposed to pay for the private rent and she deteriorated so much from leaving her original home that she had a stroke and died in August 07. She had only 3k left after 10 months, despite being housebound.

I know that if i could have got her into a home of her own she would be here now, but that's life, everything seems to come down to money.

I am so sorry, thats very sad to read, I hope your siblings rest easy at night.

poppy10_2

Aw, really sorry to hear that. Your siblings sound quite heartless, that money should have been kept by your mum.