2nd house on benefits?

willing2learn_3

I was told by a financial advisor years ago when i was recieving HB to speak to the benefits system as in certain circumstances they will allow you to continue getting housing benefit and purchase a property to rent out to someone. It looks very unfair of course and I would never have expected that I could do it - but it was the advisor that suggested it - the idea would never have occurred to me.

I'd been upfront and transparent always so decided to just go and ask. Due to the situation that the relative in question was in I was more concerned about that than anything else. So I asked.

I was asked back is this a business venture or a favour to a relative. I said a favour to a relative. I was then told that had it been a business venture then it is possible, but if it's a favour to a relative then no, because they do not believe people insist on relatives paying the rent - therefore they could be seen to be living off housing benefit and not having to be strict about rent. The lady on the phone then said that if i came back saying it was a business venture later she would not agree to it because she would remember our conversation. I was under suspicion immediately.

I know looking at it now that it seems very unfair for it to be possible at all - but at the time I was naive about the whole thing and didn't think about the bigger picture - I was just concerned for a relative and told it was possible to help them out.....I can honestly say that I was not thinking of how to play the system, quite the opposite, I was asking them to see what was legally possible.

However, due to those that do play the system and do things underhandedly, I was spoken to really badly. We'd had terrible family stress and I was just trying to help a relative but the lady on the end of the phone was so paranoid about me and at the time, due to what had happened it really hurt. All i was asking for were the facts....but there is so much emotion tied up with all this that honest people cannot even ask.

I guess there will be people that will pounce on me now, before anyone does so please understand that I was dealing wiht financial issues at the time way beyond me following a traumatic bereavement and I did not understand the bigger picture as I do now - in any case I was asking honestly and being upfront.

So with that in mind understand the point I was making.....she said in certain circumstances it is possible.

Now it's irrelevant to me now, but it stung so much how i was spoken to that i'm mentioning it here. If it's possible in some cases they should make this information clear. Yes it makes it easier for the dishonest that way I know, but should the honest be penalised and have information withheld because of them. Are there laws on the issue of withholding information...

tatonette

willing2learn wrote: »

I was told by a financial advisor years ago when i was recieving HB to speak to the benefits system as in certain circumstances they will allow you to continue getting housing benefit and purchase a property to rent out to someone. It looks very unfair of course and I would never have expected that I could do it - but it was the advisor that suggested it - the idea would never have occurred to me.

I'd been upfront and transparent always so decided to just go and ask. Due to the situation that the relative in question was in I was more concerned about that than anything else. So I asked.

I was asked back is this a business venture or a favour to a relative. I said a favour to a relative. I was then told that had it been a business venture then it is possible, but if it's a favour to a relative then no, because they do not believe people insist on relatives paying the rent - therefore they could be seen to be living off housing benefit and not having to be strict about rent. The lady on the phone then said that if i came back saying it was a business venture later she would not agree to it because she would remember our conversation. I was under suspicion immediately.

I know looking at it now that it seems very unfair for it to be possible at all - but at the time I was naive about the whole thing and didn't think about the bigger picture - I was just concerned for a relative and told it was possible to help them out.....I can honestly say that I was not thinking of how to play the system, quite the opposite, I was asking them to see what was legally possible.

However, due to those that do play the system and do things underhandedly, I was spoken to really badly. We'd had terrible family stress and I was just trying to help a relative but the lady on the end of the phone was so paranoid about me and at the time, due to what had happened it really hurt. All i was asking for were the facts....but there is so much emotion tied up with all this that honest people cannot even ask.

I guess there will be people that will pounce on me now, before anyone does so please understand that I was dealing wiht financial issues at the time way beyond me following a traumatic bereavement and I did not understand the bigger picture as I do now - in any case I was asking honestly and being upfront.

So with that in mind understand the point I was making.....she said in certain circumstances it is possible.

Now it's irrelevant to me now, but it stung so much how i was spoken to that i'm mentioning it here. If it's possible in some cases they should make this information clear. Yes it makes it easier for the dishonest that way I know, but should the honest be penalised and have information withheld because of them. Are there laws on the issue of withholding information...

It's not being underhanded at all. It is all about researching what you can and can't do before you do it and saying what you can say or can't before you say it!

There are many that have a property portfolio that see owning property as being an investment only and not a place to live in. Consequently, they will probably be renting a property to live in from a third party landlord that is generally a familly member with an above board rental agreement.

It's quite common these days with tenants paying the mortgages off and the rent on landlord's house being in part paid for by the Council (which indirectly pays that mortgage).

As I have said, the property business has to be set up properly with high % mortgages to avoid equity problems and a properly drawn up tenancy agreement for the house they live in.
Most if not all will have obtained 'clearance' before hand from the council to ensure that there are no hidden problems.

Unfortunately as you have found out, by not knowing the system, you have created your own problems.

It is not for the Council or indeed any government department to sit you down and explain what the ways are round things. You are responsible for your own actions.