What counts as a relative for housing benefit?

VjbMusher

Hi,
I am currently claiming income support and live in a council property. I am cracking up living here as I have very noisy/violent neighbours- been through mediation etc, but nothing is being done about them so it seems my only option now is to move.

I have two children- my ex left us for someone else. We have had no contact from him let alone any financial help!
His family however have been very helpful through this, my ex's Dad has offered to let his 2bed bungalow to us if we are able to get housing benefit.

Would he be classed as a relative? therefore would not be able to be my landlord? As he is no relation of mine, just my childrens Grandfather.

Please help, I'm so desperate to get out of this hell hole! Many thanks!

Jowo_2

http://england.shelter.org.uk/get_advice/paying_for_a_home/housing_benefit_and_local_housing_allowance/housing_benefit_if_renting_from_a_family_member

It is never possible to claim housing benefit to pay for rent if you live in the same property as the landlord to whom you are related.

When it is a property that the tenant exclusively occupies (i.e. the landlord lives elsewhere), then it is permitted as long as the local council believe that it isn't a 'contrived tenancy' (one set up to take advantage of the HB system. You will need a proper tenancy agreement and be expected to pay rent when you work, not just when you claim. Google 'contrived tenancy' so you understand what is expected and comply with the rules.

You should think twice about giving up a secure tenancy to become a private sector tenant where rents are higher and less secure and where landlords are less knowledgeable about their responsibilities.

Also, you should speak to CAB or look at the CSA website to understand your partner's financial responsibility towards you and his children.

VjbMusher

Thank you for your reply. Sorry I should have said he is living elsewhere. He was going to sell this property but once he became aware of how bad my situation is now, he asked if he could help.

This is something I have thought long and hard about because like you say, I will be giving up a secure tenancy, it is in a completely new area so I would also have to move schools.

I just can't see any other way out this mess I have to deal with day to day. I'm sick of feeling scared in my own home and my children are suffering. I have tried to exchange but no luck. CSA are on the case but it looks like he is working cash in hand somewhere.

But this has just giving me a ray of light. Thanks again.

Wee_Willy_Harris

VjbMusher wrote: »

Thank you for your reply. Sorry I should have said he is living elsewhere. He was going to sell this property but once he became aware of how bad my situation is now, he asked if he could help.

This is something I have thought long and hard about because like you say, I will be giving up a secure tenancy, it is in a completely new area so I would also have to move schools.

I just can't see any other way out this mess I have to deal with day to day. I'm sick of feeling scared in my own home and my children are suffering. I have tried to exchange but no luck. CSA are on the case but it looks like he is working cash in hand somewhere.

But this has just giving me a ray of light. Thanks again.

Even if he doesn't live there, you will have to demonstrate that it is a commercial enterprise and not, as already stated, a "contrived tenancy". They will want to know if he intended to rent it out on the open markey, if he has previously rented the property on a commercial basis, if full market rent will be charged etc etc etc. Tread very carefully.

VjbMusher

Thank you for your reply. Hmm, yes could be a problem.
As far as I'm aware he bought this property with his then wife a few years back, they split up and he moved out whilst they divorced.

They're now divorced and he is sole owner of this bungalow. He never intended to let it out, just sell up.
There would be no financial gain, as he would only charge what his mortgage is. If anything, The rent will be lower than what is being paid now as I'm currently in London.
I will get a job once settled and would definitely have to pay him rent, but I don't know how I could prove that.
This move would also mean moving away from my family and friends.

He just feels very ashamed at how his son has treated us and wants to help out- Don't know what HB will think of that though.

jonnyenglish

VjbMusher wrote: »

Thank you for your reply. Hmm, yes could be a problem.
As far as I'm aware he bought this property with his then wife a few years back, they split up and he moved out whilst they divorced.

They're now divorced and he is sole owner of this bungalow. He never intended to let it out, just sell up.
There would be no financial gain, as he would only charge what his mortgage is. If anything, The rent will be lower than what is being paid now as I'm currently in London.
I will get a job once settled and would definitely have to pay him rent, but I don't know how I could prove that.
This move would also mean moving away from my family and friends.

He just feels very ashamed at how his son has treated us and wants to help out- Don't know what HB will think of that though.

The fact that your ex's father would "only charge what his mortgage is" means that he is gaining financially as technically his mortgage payment would be paid for by the housing benefit.

You stated in your last post that your ex's father wants to help out. Since you are the mother of HIS two grandchildren, couldn't you appeal to his better nature and ask him to consider letting you and your family stay in the house which is evidently empty rent free until you find a job to pay the rent?

Caz3121

he would also need to approach the mortgage lender for permission to let and they may insist he moves to a BTL mortgage which will be a higher interest rate.
It is a good thing he is offerring, but to claim benefits for this enterprise it needs to be a landlord tennant relationship the same terms as if the tennant was a stranger and not a grandfather trying to do the best for his grandchildren....I assume he is unlikely to evict you if you failed to pay rent