LHA when renting from parents

emsywoo123

Is it possible to claim LHA when renting from parents?
Thanks.

Jowo_2

You cannot claim LHA if you live in the same property as a close relative who is the landlord.

You can claim LHA if you live in a different property owned by a close relative as long as its a proper commercial tenancy and not a contrived one, set up to take advantage of the benefit system. It's considered contrived, for example, when a relative who is a landlord only charges rent when the tenant is on benefits and lets them live there free when they are employed.

The Shelter website has information on HB/LHA between relatives.

emsywoo123

Jowo wrote: »

You cannot claim LHA if you live in the same property as a close relative who is the landlord.

You can claim LHA if you live in a different property owned by a close relative as long as its a proper commercial tenancy and not a contrived one, set up to take advantage of the benefit system. It's considered contrived, for example, when a relative who is a landlord only charges rent when the tenant is on benefits and lets them live there free when they are employed.

The Shelter website has information on HB/LHA between relatives.

Rent was paid by OH to my parents, no formal rent agreement. We have been here 6 weeks (ish)
He has now left. I am pregnant & got DD (6) so now need to claim?
They own house, are my LL.

Oldernotwiser

emsywoo123 wrote: »

Rent was paid by OH to my parents, no formal rent agreement. We have been here 6 weeks (ish)
He has now left. I am pregnant & got DD (6) so now need to claim?
They own house, are my LL.

What would they do if you didn't pay the rent?

emsywoo123

Oldernotwiser wrote: »

What would they do if you didn't pay the rent?

they would have to evict me, as it is their income, and they extended their mort to pay for part of this house, part was my dad's redundancy money.

karenx

I take it their mortgage is a buy to let one?
You would need to get a proper tenancy agreement drawn up which also states if for whatever reason the rent was not paid you would have to move out. It would have to be treated as if they didnt know you and it is how they would treat any tenant

emsywoo123

karenx wrote: »

I take it their mortgage is a buy to let one?
You would need to get a proper tenancy agreement drawn up which also states if for whatever reason the rent was not paid you would have to move out. It would have to be treated as if they didnt know you and it is how they would treat any tenant

No the mortgage was a small ext on theirs.
Tenancy can be done no problem.

karenx

Does she have permission from the mortgage lender to rent the property out?

emsywoo123

karenx wrote: »

Does she have permission from the mortgage lender to rent the property out?

There is no mort on the prop, it was just a small extension on theirs, they had about 92% capital............

Jowo_2

There is plenty of advice and guidance on the internet if you google to the term 'contrived tenancy' which will show you how to avoid the local council from determining the arrangement to be one that has simply been set up to take advantage of the benefit system.

Have a chat with Shelter or the local council LHA department to understand what is required for the tenancy to be considered a proper one so that you can qualify for LHA.

zaralondon

karenx wrote: »

Does she have permission from the mortgage lender to rent the property out?

I am assuming that this is only for the purposes of not violating the terms of your mortgage as opposed to anything to do with LHA? I mean, the local authority are not going to ask if you have a mortgage as far as I know. (?)