Contrived tenancy?

StudentMum88

My brother hasn't yet moved in, he is currently advertising for a tenant for the spare bedroom while the house is being done up slightly. My brother is doing this as a favour to me, but not so either of us can "scam" the HB system. If I do not rent from him I will have to rent from someone else and will still be receiving the housing benefit. It is all very complicated and obviously I can see why it would be seen as contrived, and I have been reading up on the implications of renting on a residential mortgage and think it is best to wait for the decision from the mortgage company on the CTL.

As for the father of my child, he is currently in University and has informed me that by keeping the child I have "ruined his life" and has told me that he plans to leave University if the CSA can take any money from his student loan and sign onto Job Seekers, think the baby will be entitled to about £5. Sadly you only see peoples true colours when it's too late, I never thought that our 2 year relationship would end this way but not everything's a fairytale.

Egg_custard_2

Wow, sounds like the father of your baby is set to ruin his own life - if he really thinks that jeopardising his education and future earning potential is a good idea just to get out of contributing towards his own child then you're best out of that one.

It's not a matter of whether you are 'scamming' them, it's whether the tenancy is contrived. You've just said your brother is currently looking for a lodger, and ideally it sounds like that his preference is for you to move in as a lodger (except that you can't because you wouldn't receive any HB so neither of you can afford that option - that is what perhaps in the authority's eyes will make it appear contrived). Would your brother be looking to rent out his house to anyone else and move in with friends? I doubt the answer to that is 'yes'.

Don't get me wrong, I'm not judging you. I'm just trying to give you an unbiased view of how it may be seen as contrived. I think it would be a good idea for your brother to get CTL from his mortgage company.

I've looked into this issue myself. We want to buy a second property for my sister-in-law to rent from us. She has been renting privately and receiving HB for years. We have cash to invest and will more than likely BTL in the next 2-3 years, whether to her or anyone else. Buying somewhere for my SIL to rent from us would be perfect - long-term tenant for us, and no moving the kids around for her. However, the authority says it is likely to be viewed as contrived, just due to the family relationship, which seems unfair. They said she would need to move in and then claim HB before a decision will be made, but she can't risk losing her HB and we can't afford for her to live there without HB so it looks like a no go. We're not looking to 'scam' anyone either.

Emmzi

plenty of mums go to uni. is difficult but not impossible. Why do you feel you need to drop out?

G_M

Emmzi wrote: »

plenty of mums go to uni. is difficult but not impossible. Why do you feel you need to drop out?

It seems to be the father who's dropping out, not the OP.

Father seems to have a point: from the limited info available the baby seems to be an 'accident', and clearly one the father regrets and wants nothing to do with.

Given the difficulties of single parenthood (as evidenced in one aspect by the this thread), perhaps dad is right. How far along are you? We live in an age of amazing medical advances.

(ok - now I'll sit back and wait for the storm......)

Emmzi

OP says

"as my baby is due in March I will be leaving University after the first semester and so all loan payments will stop. "

which I read as not going back.

OP, have you talked to your student welfar office, they may have better ideas to help?

G_M

Emmzi wrote: »

OP says

"as my baby is due in March I will be leaving University after the first semester and so all loan payments will stop. "

which I read as not going back.

OP, have you talked to your student welfar office, they may have better ideas to help?

True - forgot that and just read the father's uni drop-out plans.

All the more reason to review the sense of the baby plan, go back to studying, wait for a stable relationship, and get life on a firm footing...

Emmzi

G_M, I think you are straying into a whole area where OP has clearly not requested any advice and is highly contentious, as you know. Let's put the spoon down...

G_M

Emmzi wrote: »

G_M, I think you are straying into a whole area where OP has clearly not requested any advice and is highly contentious, as you know. Let's put the spoon down...

Couldn't agree more.

theartfullodger

StudentMum88 wrote: »

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

This really isn't a contrived tenancy...

...........

Re. contrived tenancies it's not who you (the tenant) think is or is not contrived but rather what the DWP/Local council thinks in contrived..

This
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
has good guidance on the matter: If you ain't sure if you'll get HB then check with the HM/LHA people FIRST !! (I 'umbly suggest..)

The rules on contrived tenancies are complex and remember, Dave Cameron is keen on councils (who pay HB/LHA) spending less and is encouraging them to be harder on HB/LHA claims, as well as reducing the amount that will be paid for HB/LHA .

Good luck with the kid, hope it all works out..

Rikki

If I had a pregnant sister, just bought a house, I would be happy for her just to move in. I'd be there to help.

If I had just bought my first house I would be excited and looking forward to moving in, not thinking about lodging with a friend so my pregnant sister can move in, hopefully get HB and pay the mortgage for me.

First time buyers mortgage I doubt the lender would change this to a 'buy to let'.

If this isn't seen as a contrived tenancy I don't know what is?