Just a bit curious about HB/LHA

Alfalfa

Afternoon all!

I'm hoping you may be able to clarify some things for me. Myself and my partner currently rent a flat off my Dad and we pay £450.00 per month.

A friend of mine mentioned the other day that as I'm due to go on maternity leave in just under 3 weeks and I'll no longer be receiving my full wage we may be eligible for HB/LHA. I don't think this is the case as we rent off a close relative but my friend said that we may be entitled to it as when I return to work in January next year I'm only planning on going back 3 days. Also, my OH earns around £18000 a year so surely that would mean we can't claim anything? Can anyone advise?

As a side note, what is the difference between HB and LHA? I haven't got a clue!

HappyMJ

HB is Housing Benefit it's a credit paid to a housing association for tenants in social housing. There is currently no limit on this payment. LHA is local housing allowance previously also known and sometimes still called housing benefit (my council has always called it housing benefit it's printed on my cheque Housing Benefit to Sunday shown below) it's limited to the median rent for the area and is paid to tenants for private rentals.

"May" is the word that needs highlighting from your post. You may get it you may not. If your dad has lived in the house you won't get HB/LHA. If it's a flat on which he has a BTL mortgage and treats you as a commercial tenant then you'll most likely get HB/LHA. You can claim HB/LHA on any amount of income the amount you earn determines the amount you get. The more you earn the less you get. You "may" still get a payment on £18k of income.

bertiebat

Cross posted with Happyj

Alfalfa

Thanks for the quick reply.

My dad has never lived in my flat, he bought it nearly five years ago and I moved in straight away and started paying the agreed amount of rent. We have never had a contract or anything drawn up, we just pay the rent into his bank account on the first day of the month. I'm guessing that because we've never drawn up an official agreement this may effect our eligibility?

HappyMJ

Alfalfa wrote: »

Thanks for the quick reply.

My dad has never lived in my flat, he bought it nearly five years ago and I moved in straight away and started paying the agreed amount of rent. We have never had a contract or anything drawn up, we just pay the rent into his bank account on the first day of the month. I'm guessing that because we've never drawn up an official agreement this may effect our eligibility?

That's good so far. You don't need a written agreement but it helps immensely. Actually it's a requirement to have evidence of something agreed to get help. So it's easier just to get one drawn up. Just a tenancy agreement will do and it can be backdated to the date you moved in. They'll give you and your landlord forms to fill out if you don't have a written agreement. You have a standing order set up which is good and the council will need to see evidence of rent passing. I get HB renting my property from family so it can be done.

HappyMJ

bertiebat wrote: »

You're right on both counts (friend is wrong). Renting from your Dad would be seen as a 'contrived tenancy'.

HB stands for Housing Benefit (for council housing rents), LHA (Local Housing Allowance) for privately rented accommodation.

On the plus side, you seem to have landed a bargain rent (though I do live in London).

It's could be seen not would be seen...a big difference.

bertiebat

HappyMJ wrote: »

It's could be seen not would be seen...a big difference.

I stand corrected. Removed post, but your quote beat me to it!

HappyMJ

bertiebat wrote: »

I stand corrected. Removed post, but your quote beat me to it!

LOL:) I think I said "may" enough as well.

Jowo_2

You can identify the potential LHA you may receive by identifying the maximum sum for your size of household on the LHA Direct website and then working through the Turn2us online benefit calculator.

You can identify the potential issues you could experience by having no formal commercial arrangement set up with your father who is the landlord by searching for the term 'Contrived Tenancy' on this website and on google.

It is possible to get LHA if you a rent a separate property from a landlord who is a close relative as long as the local council do not believe it has been contrived in order to exploit the benefit system.

It is never possible to get LHA if you live in the same property as the landlord who is a close relative (i.e. you are their lodger and they live in the property with you).

Alfalfa

Thanks for all your replies, I think I'll definitely look into LHA and see if we can claim for it, we may as well if we're eligible!

viktory

Your Dad also has to be charging a fair market rent - in other words, if you moved out and another tenant moved in, the rent would stay the same.