retirement and housing benefit

SiannieLaz

Hi All,
Looking for a little advice from all you good people!! My father, 68yrs old, is being forced into retirement. He has no pension, except the state pension. His flat has been owned by my brother for several years, since my Dad got himself into a situation where he couldn't pay the mortgage. My main questions are:

1. Would the council pay housing benefit for my Dad or would the fact that his Son owns the flat stop them?
2. Are there any other benefits Dad would be entitled to?

We are having to do all this as my Dad is just insisting that the flat be sold so he can have the money, and will not contact the housing dept. There is about £75000 equity in the house. Any advice much appreciated.
Cheers
xx

Wee_Willy_Harris

Is your dad already paying rent?

Jowo_2

Landlords can rent their properties to close relatives via Local Housing Allowance (the new term for housing benefit) as long as they don't live in the same property together and it isn't a 'contrived tenancy' set up to exploit the benefits system. Google the term to understand what this entails (basically, that its a proper tenancy and that the tenant pays rent when they are in employment, not when they are entitled to benefits).

Your brother should understand how to run a tenancy on a proper formal basis, including the legislation he has to comply with so forth. For that, he should join a national landlords association, attend a course/buy a landlords book and read the information on Landlordzone about his responsibilities. He should also understand the impact of CGT on letting out a property (more in the 22nd June emergency budget, I should think).

Also, does your father appreciate that if he gets the equity, his additional savings could put him out of the reach of means tested benefits, such as LHA. Where is he going to live and does he appreciate that he has to spend his savings on his rent, council tax and so forth?

Also, I don't understand why your father will get the equity if your brother bought the property from him in the first place?

McKneff

We are having to do all this as my Dad is just insisting that the flat be sold so he can have the money, and will not contact the housing dept.

If the flat was sold and it is owned by your brother, why would dad get the money?

welshmoneylover

SiannieLaz wrote: »

My father, 68yrs old, is being forced into retirement. xx

Why is he being forced? He knew it would be coming at some point or did he wish to carry on working?

Oldernotwiser

McKneff wrote: »

We are having to do all this as my Dad is just insisting that the flat be sold so he can have the money, and will not contact the housing dept.

If the flat was sold and it is owned by your brother, why would dad get the money?

And where's he planning to live when it's been sold?

hippy-chicy

I think we need a little bit more information.
Is your Dad named on the mortgage and if not is he currently paying rent to your brother?

In the meantime I would suggest that your dad contacts the pensions service and gets some advice on making a claim for pension credits.

SiannieLaz

many thanks - answers to questions

1. for complicated reasons my dad, who is self employed, is not legally aloud to run his own business. The guy who has been fronting it is retiring and my dad will not work for anyone else.

2. Bro owns flat as dad was going to get it repossessed 6 years ago, and bro bought so he could stay in his home. It was always down to dad to pay the mortgage, but he didn't for several years and bro remortgaged the property and used the money to meet the payments. Flat is legally my brothers, but was always agreed dad would pay, so it is his.

3. Dad has nowhere to go, has always been financially inept (I get it from him!) and has a habit of being spare with teh truth. He wants the flat sold and says he will rent, but if he can't afford £400 per month mortgage, how can he afford to rent (studio flat in our area is £600 per month).

We weren't sure if the council would pay housing benefit due to the father/son relationship. My bro lives in australia and is over this week so we were trying to get some info and the council keep sending us to the benefits office and visa versa.

Many thanks for help
xx

Wee_Willy_Harris

Don't quite understand 2.

Your brother took out a mortgage on the flat and cleared your fathers mortgage 6 years ago. ie he bought the flat, paid your father who cleared his mortgage debt. So, your fathers debt was paid off and your brother owns a flat on a mortgage. Why is your father still owed money on a flat that he no longer owns? Wouldn't that be like him being paid twice and leaving your brother with a mortgage and no flat?

Oldernotwiser

SiannieLaz wrote: »

2. Bro owns flat as dad was going to get it repossessed 6 years ago, and bro bought so he could stay in his home. It was always down to dad to pay the mortgage, but he didn't for several years and bro remortgaged the property and used the money to meet the payments. Flat is legally my brothers, but was always agreed dad would pay, so it is his.
xx

I cannot understand why you think that this flat is your father's, either legally or morally. From what you have said, he didn't even keep up the mortgage payments when your brother bailed him out the first time and he has been living there rent free ever since.

The best thing seems to be for your father to claim Pension Credit and find himself a one bed flat withing the LHA rate, for which HB will be payable.

Edit: The weekly LHA rate for a 1 bed flat in Walton is £161 and for Outer South West London is £190 - just to give you an idea.

McKneff

Why oh why do people commit fraud and are stupid enough not to realise that they are liable for prosection.
The flat is not your fathers, it is your brothers, he (father) is paying rent to your brother to cover your brother who is paying the mortgage, not your father. Your father is entitled to exactly zilch.


Your brother could just evict your father and walk away and still keep every single penny that the property is sold for.

So, now the tax payer has to bail your father out.

If youre brother gives him anything it would be out of the goodness of his heart. Nothing to do with rights, legalities, just family love,
just to make you aware of this.

Your dad needs a lesson in responsibility