Subletting

Jizzle

Hi -Long time reader, first time asking a question.

I'm after some advice. hope this is in the right place - will try keep it to the point.

I was renting a house and moved out - but kept the house in my name and let my sister live there (the agency wouldnt let any new people have the house at the same price i was paying).

My sister gives me the rent and i simply keep paying as usual. My sister recently lost her job and is now on jobseekers while she finds something. She and her partner still pay me the rent.

The jobseeker people have said if they have a rental agreement from the landlord they can help my sis pay towards the rent. If i complete a rental agreement would this work? even though its not actually my house? I'm not trying to make money from it - just simply cover the rent.

Leory

chances are that your contract will not let you sublet, so check that first.

If you could sublet and you provided a contract, you would then have to declare the earnings you are getting.

Jizzle

Leory wrote: »

chances are that your contract will not let you sublet, so check that first.

If you could sublet and you provided a contract, you would then have to declare the earnings you are getting.

thanks- the contract doesnt allow me to sublet (but i am so my sis can live there, i wouldnt do it for anyone else or profit).

The rent is only just over 400 a month (they would pay £200 i think) so i dont think its enough earnings where i would have to declare it.

theartfullodger

Suggest you think about trying to end this subletting - you are the landlord or sis etc... with all the legal responsibilities of a landlord e.g. providing a gas safety certificate, repairs, security of the property, providing safe electrics, being liable should there be problems (eg fire..) for any damages or personal injury &, HMRC would probably say, of declaring your rental income (less valid expenses...) to the tax man...[Just like any other landlord]. Your landlord has you as a tenant: You, as tenant-of-your-landlord are landlord-of-sis

Appreciate you're doing it for all the right reasons but do you appreciate what you've taken on here???

JimmyTheWig

Can't see it working. I believe there's all sorts of rules about getting housing benefit to pay rent to a family member.
Plus regardless of the amount I think you would have to declare it. (Though I guess your sister could afford you to charge more to cover the tax you'd have to pay if housing benefit were paying towards it?)

But the big problem is that you are not allowed to sublet.

So I think the answer is to do it legitimitely.
Get your sister to rent the place directly. You've said they'll put the price up, but I would imagine that she'll get more in housing benefit than the price increase.

ILW

Jizzle wrote: »

thanks- the contract doesnt allow me to sublet (but i am so my sis can live there, i wouldnt do it for anyone else or profit).

The rent is only just over 400 a month (they would pay £200 i think) so i dont think its enough earnings where i would have to declare it.

You DO have to declare it, whether it would be taxable is another thing.

theartfullodger

JTW correct about HB probs.. see...
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

Sorry, it's a mess, time to change may I 'umbly suggest??

Jizzle

Hi Thanks for all the responses.

I can't see them moving the house to her especially as she is now unemployed and they usually dont take people on benefits.

I think the best thing i can do at the moment is leave it as it is - then when she gets another job (hopefully soon) move it all into her name. might just be a tight couple of months.

Mrs_Z

Hi,
Well, first of all, a) it is not YOUR property to let and b) your contract does not allow you to sub-let so you can not do it legally. Again, I appreciate the reasons why you wish to do it, ie. in order to help your sister out but if your landlord discovers what you have been up to, he/she might well decide to serve you a notice to terminate the tenancy which would equally leave your sister without a place. Why don't you have a word with your landlord to see if he/she would be willing to accept your sister as a joint tenant? Be aware though that should she not be able to pay the rent for any reason, you'd be liable for it.

tbs624

You subletting the property ( for whatever reason) is a breach of your contract ( you obviously know this) and is likely to lead to you being given notice ( and your sister being booted out), if discovered.

You don't say where you are living atm but should you need a LL reference in the future, being a subletter won't go down too well with future LLs.

Relatives of benefit claimants can't set up random "sham" contracts in order for benefit payments to be made: you are a T and not the LL of the property.

Who is listed on the electoral register at this property? In whose names are the utility bills, the Council Tax bills?

You'd be amazed at the depth of cross referencing that goes on.

Jizzle

tbs624 wrote: »

You subletting the property ( for whatever reason) is a breach of your contract ( you obviously know this) and is likely to lead to you being given notice ( and your sister being booted out), if discovered.

You don't say where you are living atm but should you need a LL reference in the future, being a subletter won't go down too well with future LLs.

Relatives of benefit claimants can't set up random "sham" contracts in order for benefit payments to be made: you are a T and not the LL of the property.

Who is listed on the electoral register at this property? In whose names are the utility bills, the Council Tax bills?

You'd be amazed at the depth of cross referencing that goes on.

I bought my own house so was going to give the other house up (until my sis asked)

My sis is listed for everything in the house electoral role, bills etc.

Tried speaking to the landord but they use an agency who are the ones that want to put the house on the market and up in price if cancel tenancy