Can daughter buy our council house then rent it to me?

fluttering_lashes

I dont know if this is the right place to post this so forgive me if its not.
I rent my home off a housing association (was transferred from the council). The house has been adapted for my needs as I am disabled and cannot work, I receive housing benefit and DLA .
I live with my two daughters the eldest works, the youngest is at school, We have lived here for 26 years and although it is a rented property my sons have done a lot of work and decoration on the house and the garden and we are happy with the house and the area we live in I worry that if anything was to happen to me the girls would lose their home,
My eldest daughter would like to get on the property ladder and buy a house to rent out. I have the right to buy my house with a discount of £26,000. My daughter said she would like to buy my house. I know we have the right to buy and my daughter can buy the house jointly with me, but I do not have the money to buy nor could I afford to pay a mortgage. My daughter would like to buy the house and pay the mortgage herself but I would have to pay her rent so that I can live here as she would need a rental income to help her pay the mortgage.
My question is could I get help towards my share of the rent she would charge me from housing benefit even though my name would also be on the application to buy the house?
Thanks

LandyAndy

Does this mean that you would be joint owner of the house and expect benefits to pay you an amount equivalent to rent to subsidise your ownership?

That doesn't sound either fair or likely but I may just be misinterpreting what you wrote.

LandyAndy

fluttering_lashes wrote: »

I dont know if this is the right place to post this so forgive me if its not.
I rent my home off a housing association (was transferred from the council). The house has been adapted for my needs as I am disabled and cannot work, I receive housing benefit and DLA .
I live with my two daughters the eldest works, the youngest is at school, We have lived here for 26 years and although it is a rented property my sons have done a lot of work and decoration on the house and the garden and we are happy with the house and the area we live in I worry that if anything was to happen to me the girls would lose their home,

Werdnal wrote: »

I think if your daughter is not living there, she would need a buy to let mortgage, rather than a standard residential one, which might work out more expensive for her. Similarly, house insurance would need to be declared as a let.

She would also need to declare the income from her rent, for tax purposes.

...................

Werdnal

Thank you landyandy - I have just reread the OP and deleted my message as it did not apply - you beat me to it!

Mojisola

fluttering_lashes wrote: »

My question is could I get help towards my share of the rent she would charge me from housing benefit even though my name would also be on the application to buy the house?

If you have used your right to buy, you won't be able to get HB.

If you are renting from a relation, you can only get HB if you can show that the tenancy is a real business arrangement. As it's highly unlikely that your daughter would evict you from the house that has been adapted for you and that she shares with you, it would be considered a contrived rental.

fluttering_lashes

I dont really want to be the owner of the house its just that my name has to go on the application in order to buy the house as the tenancy is in my name, My daughter would still live there its just like she now pays towards my rent and housekeeping out of her wages she would want money towards her house off me and my youngest daughter.

We are only considering this as my health is getting worst and I worry that my girls are going to be homeless if anything happens to me, as has happened to one of my neighbours family after he passed away this year.

Mojisola

fluttering_lashes wrote: »

I dont really want to be the owner of the house its just that my name has to go on the application in order to buy the house as the tenancy is in my name, My daughter would still live there its just like she now pays towards my rent and housekeeping out of her wages she would want money towards her house off me and my youngest daughter.

We are only considering this as my health is getting worst and I worry that my girls are going to be homeless if anything happens to me, as has happened to one of my neighbours family after he passed away this year.

I don't think that your daughter can buy it if the tenancy is in your name.

poppysarah

So you'd like your daughter to be your landlord and take the value of the discount as a profit from the sale of your council house to yourself, and you'd like housing benefit to fund the rent?

You've got to be joking.

LandyAndy

poppysarah wrote: »

So you'd like your daughter to be your landlord and take the value of the discount as a profit from the sale of your council house to yourself, and you'd like housing benefit to fund the rent?

You've got to be joking.

I didn't like to put it quite so bluntly but ....



Actually I suspect the OP's plan is born more of ignorance than malice.

pararct

Your daughter would need to weigh up if she could actually afford it first!! Does she have a sizeable deposit and does she earn enough to meet the repayments on the potential mortgage.

TBH although you clearly have good intentions it may be better to persuade your daughter to start saving for a deposit on a place now just in case the worst were to happen. What you are asking by the looks of the replies above is fraught with regulatory problems

theartfullodger

The rules on being allowed HB when renting from family members are complicated (to prevent fiddling amongst other things./.. ...)
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 to read of your health problems: Hope things improve.

But I also completely agree with the point...

So you'd like your daughter to be your landlord and take the value of the discount as a profit from the sale of your council house to yourself, and you'd like housing benefit to fund the rent?

You've got to be joking.

This plan is not that of a decent patriotic person, IMHO. I am sure I and others have completely mis-understood what you are planning to do & you are, in fact, planning something else that is entirely honorable & decent. Please let us know what is really envisaged...

Cheers!

Artful