how to get housing benefit

flourpower1

thanks for all the replies

AnxiousMum

Could you not put the house on the local rental market and rent it to someone else? Your family members could then rent somewhere that they will qualify for LHA benefit. I think that the problem you might run into - is that you have said you purchased it so that the rent could go towards the mortgage if I understand correctly, and that you will eventually be selling this house to your family members. In a way, you are not a landlord in that case, but in fact, being a middle man between your family members and the mortgage company. I don't know that housing benefit would be allowed in that situation.
With the 'close family member' situation - you would need to show that you have a commercial tenancy - and this may be hard as you are just starting this now, when they need the benefit help.
You would also need to show that if they were unable to pay the rent, as with any other tenant, you would evict them for non payment of rent.
Well done for trying to help them out when you can - but it may prove to be a little more difficult with the sitution than you initially thought now that benefits are involved.

Jowo_2

Google 'contrived tenancy' to understand the rules that can restrict some tenants from receiving housing benefit when the property is owned by a close relative who is the landlord. Housing benefit can be paid so long as the local council determine that it's not a contrived tenancy, one set up to take advantage of the HB system.

As per the previous poster, this requires it to be a proper commercial tenancy, with a contract in place, and one where rent is payable all the time, not just when the tenant is on benefits, for example. Look into the rules around contrived tenancy and put in an appeal if the local council is not following guidelines.

Renting to family members is always more fraught anyway as minor tenant/landlord disputes can ruin the family relationship. Ultimately the landlord could end up evicting a relative and making them homeless - it's not for the faint hearted.

Also, your proposal to give them the property when the mortgage is paid off (if that's your specific intention, not clear how you plan to transfer it to them) is also a minefield with regard to tax liability, such as capital gains tax and possibly inheritance taxes, plus deprivation of capital issues can impact your access to means tested care services and benefits. For example, if you need a care home later if you and your spouse become infirm, if you've given away the property to your children, you will still be classed as owning it (known as 'notional capital'). Perhaps you should post your proposal on the Housing forum where the members can give you clear advice on the potential risks of your strategy to handover the property to your daughter or sell it to him for less than the market rate.

flourpower1

thank you for the replies

viktory

caw99 wrote: »

thanks for all the replies

Why have you deleted the OP? This is beyond irritating.

real1314

viktory wrote: »

Why have you deleted the OP? This is beyond irritating.

I wholeheartedly agree. It prevents the thread being used by others to help them understand issues and problems that may have been discussed.

"Search through the threads, it's been discussed many times" won't apply to this thread!

Back to the old "Quote the OP" routine?

dmg24

viktory wrote: »

Why have you deleted the OP? This is beyond irritating.

Here we go ...

Hi, 3 years ago our daughter, son in law, grandchildren lost everything they went into rented. late last year we obtained a buy to let mortgage on a small property with the intention that they pay the mortgage and eventually buy it back from us and not for a profit.
just before christmas our son in law lost his job and has had no choice but to declare himself bankrupt.
They are about to move into this little house but according to the benefits system they are not allowed housing benefit because we, close relatives own the house and all we want is for the mortgage to be paid £440.
We are pensioners and not eligible for benefits and cannot afford this mortgage.

Is there any way we can get help with this.
Thanks

viktory

Oooh, thanks dmg. How did you do that - time travel????

dmg24

viktory wrote: »

Oooh, thanks dmg. How did you do that - time travel????

Google cache - enter your search terms and look for any result that says Cached. Click on the Cached hyperlink rather than the usual link and it will show you any old results.