LHA when renting from parents

Oldernotwiser

zaralondon wrote: »

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. (?)

Having a BTL mortgage is something that will imply that it's a proper commercial tenancy.

zaralondon

Oldernotwiser wrote: »

Having a BTL mortgage is something that will imply that it's a proper commercial tenancy.

Does the LA always request BTL documentation? If the owner owns the property outright (rare but still occurs) does that then automatically make the tenancy 'contrived'?

Jowo_2

Can't answer the first question - I'm not aware of a local authority asking for proof of ownership/type of mortgage that the landlord has but other posters can comment on this.

It is the collusion between tenant/landlord that makes a tenancy contrived, when they set up the arrangement to take advantage of the housing benefit system (by charging rent when the tenant is entitled to LHA but none when they are working, for example). The rules around it seem to be satisfied when it is a proper commercial tenancy and isn't a casual one.

I very much doubt that the economic circumstances of the landlord has any bearing on this - a landlord isn't expected to stop charging rent to tenants when the mortgage is paid off!

emsywoo123

Thanks for all your help on this......further complications arisen as I am self employed :rotfl::rotfl: