Housing benefit question

Steve_xx

Scenario:

Mother age 45 and two daughters, ages 23 and 25 respectively, share a mortgaged home.

Mother moves out to live with new boyfriend and transfers mortgage payments to eldest daughter. Eldest daughter is employed as hairdresser, whilst youngest daughter is unemployed and diabetic.

Is it feasible for the eldest daughter to levy a rent charge to the youngest daughter, perhaps under the rent-a-room scheme? If it is possible, could the youngest daughter then be entitled to claim Housing Benefit?

The elder daughter may well marry and all three may live together in this house. Not an ideal situation I know, but nevertheless the elder daughter feels protective towards her younger sister and wants to look after her as much as possible.

Oldernotwiser

You cannot claim LHA/HB for a property you share with a close relative.

Steve_xx

Thanks for the information.

If their mother still paid the mortgage, and no longer lives with them, could she charge a rental for the property as if she was letting it to her daughters? And, if this was possible, could the younger, unemployed daughter receive help in the form of Housing Benefit in that scenario?

Oldernotwiser

Steve_xx wrote: »

Thanks for the information.

If their mother still paid the mortgage, and no longer lives with them, could she charge a rental for the property as if she was letting it to her daughters? And, if this was possible, could the younger, unemployed daughter receive help in the form of Housing Benefit in that scenario?

What do you mean by "as if she was letting it " ?

Steve_xx

I mean that if the mother drew up a tenancy agreement for her daughters, could the younger daughter then have some entitlement to HB?

property.advert

You cannot just transfer a mortgage to someone else. Whose name is on the mortgage and who is paying the mortgage bills ?

I suspect the mother's name is still on the mortgage but she needs cash for her new boyfriend and their place and the elder daughter is now paying the mortgage, which remains in the mother's name.

It is actually about time for the kids to leave home, or in my mind, well past the age when they should leave home. Mother can then live there with or without boyfriend.

Kids can rent their own places to live and claim if they need assistance. They cannot easily claim legitimately in the situation as it stands.

karenx

Steve_xx wrote: »

I mean that if the mother drew up a tenancy agreement for her daughters, could the younger daughter then have some entitlement to HB?

no because she is already on the mortgage.
doesn't matter what way you word it neither daughter can claim housing benefit for this house. If they are struggling with the mortgage maybe they should think about selling up

Steve_xx

property.advert wrote: »

You cannot just transfer a mortgage to someone else. Whose name is on the mortgage and who is paying the mortgage bills ?

I suspect the mother's name is still on the mortgage but she needs cash for her new boyfriend and their place and the elder daughter is now paying the mortgage, which remains in the mother's name.

It is actually about time for the kids to leave home, or in my mind, well past the age when they should leave home. Mother can then live there with or without boyfriend.

Kids can rent their own places to live and claim if they need assistance. They cannot easily claim legitimately in the situation as it stands.

I'm unsure who's name the mortgage is currently in. It definitely isn't in the unemployed sisters name, but could be in either mothers or elder sisters name. I would need to clarify that perhaps.

Regarding whether or not it's time "for the kids to leave home", is not actually relative to the question I'm posing.

I know that if the youngest daughter sets up in a flat on her own, that given her current situation she would be able to obtain HB. It may well come to that at some point.

Steve_xx

karenx wrote: »

no because she is already on the mortgage.
doesn't matter what way you word it neither daughter can claim housing benefit for this house. If they are struggling with the mortgage maybe they should think about selling up

The younger, unemployed daughter is not on the mortgage. The elder, employed daughter may be, but I'm unsure on this.

lizzielondon

I *think* this is correct, please double check:

if the mortgage is in the mother's name she can rent the house to her daughter and her daughter may then be able to claim LHA.

the DWP/local council (not quite sure) will need proof it is not a contrived tenancy i.e. that the daughter is paying market rent and has an AST

as the daughter would be a tenant not a lodger the mother could have to go to court to seek posession if the daughter decided not to give it up willingly

NB/ as i understand it LHA cannot be paid to a LL whose child will be residing in the house- i believe this refers to children under 18 (i.e. woman and child renting off her ex/child's father)

re whether or not LHA can be paid when the LL is a close relative i believe it can be as long as it is proved it is not a contrived tenancy-

some may come along and correct me as i may be wrong!

Steve_xx

lizzielondon wrote: »

I *think* this is correct, please double check:

if the mortgage is in the mother's name she can rent the house to her daughter and her daughter may then be able to claim LHA.

the DWP/local council (not quite sure) will need proof it is not a contrived tenancy i.e. that the daughter is paying market rent and has an AST

as the daughter would be a tenant not a lodger the mother could have to go to court to seek posession if the daughter decided not to give it up willingly

NB/ as i understand it LHA cannot be paid to a LL whose child will be residing in the house- i believe this refers to children under 18 (i.e. woman and child renting off her ex/child's father)

re whether or not LHA can be paid when the LL is a close relative i believe it can be as long as it is proved it is not a contrived tenancy-

some may come along and correct me as i may be wrong!

Thanks for this information. Could you clarify what is LHA, AST & LL?