Landlords & HB refusals

SpareRib_2

Hello all, my cousin is living some distance away and has for some time been considering moving closer to the family. She has two young children but her partner is not on the scene and has not been for many years. Up until a month ago she has working full time but lost her job through redundancy, this is not a major worry as I am confident she will find a new job after she moves given she is an educated young lady. The landlord is fine where she is.

The problem my cousin is having is to date any landlords she has approached in our area have flatly refused the possibility of renting to a person claiming housing benefit. I can perhaps understand they do not wish to take a chance but seriously this girl is salt of the earth and is just looking for a new start closer to her family. Question is, can she approach a landlord and not divulge this information, obtain a tenancy and then go on to claim housing benefit until she finds a new job? I know this day and age payments can be made directly to the tenant but is a claim possible without the knowledge of the landlord, assuming a lease is available to prove rent?

Another option we have considered is I rent the property and then she moves in. Could HB could be paid to me on the basis I was to sub-let the property to her? I appreciate this may be contrary to the lease but it could happen that maybe we were a couple when taking on the house and then split up with her staying on in the house with the children.

Any advice would be really appreciated.

HappyMJ

She needs to offer 6 months rent up front to the landlord. HB is only for council tenants. LHA is always paid directly to private tenants so it can be claimed without the landlords knowledge however she needs to prove income to be able to rent and that will be the problem. That income doesn't have to be salary and wages it can also be child support, tax credits and child benefit.

Annisele

SpareRib wrote: »

Could HB could be paid to me on the basis I was to sub-let the property to her? I appreciate this may be contrary to the lease but it could happen that maybe we were a couple when taking on the house and then split up with her staying on in the house with the children.

And if that were to happen, you'd then be wanting HB to be paid to you so that you could pay the rent on the property your ex-partner was living in? That is never going to work, and is likely to get you in a great deal of trouble.

SpareRib_2

Thanks for the advice, there is no wish to do anything wrong just find a temporary solution so she can move here without being blanket refused everywhere. Proof of income is not a problem given she has wage slips up until last month but that does not prove ongoing income and thats her quandry. If there is no way around a landlord being aware then I will pay the rent for her its not a case of trying to get away with anything but understandably she has self pride and wishes to pay her own way.

Annisele

I can't see why you say that "proof of income is not a problem" - from the sounds of it, proof of income is the essence of the problem.

She can certainly approach a LL without volunteering the fact she's just been made redundant. However, any LL with even a smidgeon of sense will want to credit check her / check references - and when that happens, she'll either have to disclose her circumstances or lie. Lying is not a recommended option!

Lots of landlords have no problem with renting to people on benefits (lots do, but your cousin isn't interested in those). Would you be able to be a guarantor for her? That's a major commitment - and often it's better to just lend six months worth of rent - but it might be a possibility.

How far is your cousin intending to move? If its, say, 200 miles, then the LL is likely to realise that she can't possibly be intending to keep her previous job.

tbs624

Where do you live now? Could you, or another family member, offer your cousin & her kids temporary living space until she gets work sorted out?

Your cousin cannot "pretend" to a LL about the source/level of income - as Annisele says, the checks that will be undertaken would reveal that there is currently no employment.

You cannot sub-let on an AST. If your cousin was not a joint tenant at the property, but there with the LLs approval, she would be what is termed " a permitted occupier". If you had to go so would she. And no, you couldn't claim HB/LHA as you describe.

Don't try subterfuge, especially when benefit claims are involved.

Your cousin could start by checking with the Council whether they hold a list of accredited private sector LLs - if they do the Council will know which ones are amenable to letting to LHA claimants. She could also try via the local LL association. If she cannot fund a tenancy deposit she may be able to obtain help via the local Council - they sometimes have "bond guarantee schemes". Note that there are specific criteria to be met and one of them is often that the T needs to have a local connection/have been resident in the town for a set period.

Some LLs will offer a tenancy to those on low incomes if they have someone who is prepared to act as a guarantor. Is there anyone in the family who would be prepared to do this? If yes make sure that they get independent advice before signing up as it can prove to be an onerous commitment.

As HappyMJ says some LLs will also consider upfront rent ( some LLs won't because those who like to indulge in "exotic horticulture" often handle things this way). It is also unlikely that most Ts on a low income will have a 6 month rent equivalent sitting in their bank a/c,

tbs624

SpareRib wrote: »

If there is no way around a landlord being aware then I will pay the rent for her its not a case of trying to get away with anything but understandably she has self pride and wishes to pay her own way.

You are clearly a supportive family member. The way forward then is that you offer yourself as a guarantor and help her to pay the initial rent on time whilst her benefit claim is being dealt with.

Has she sought legal advice about child support from her ex btw?

SpareRib_2

Thank you all again, my cousin lives around 100 miles away, we are only a small family, myself and parents and none of us have room to accommodate her temporarily otherwise we would without hesitation.

Yes I can and would be happy to act as a guarantor I have no problem with this and do recognise the responsibility. Its more a concern about the reaction of landlords thus far when explaining she will be seeking work and in the meantime would want to claim LHA, so far this has all been done over the telephone before viewing which with hindsight is a mistake. I have suggested she ask to view the property and meet the landlord in person before even mentioning her situation as she is a lovely girl, its just her circumstances are a little different to most.

tbs624 your advice on contacting the council for ameniable landlords is really helpful, I will pass this on along with the rest of the advice i.e. be honest and keep on trying!

jamie11

I don't know if this helps but there is the possibility of LHA paying for both properties for the changeover month, whether that is possible or not is something for her to discuss with the council.

Werdnal

Sadly, there are a minority of LHA tenants who spoil the situation for everyone, the same as there are a minority of dodgy landlords who give us all a bad name!

I have let my property for 11 years now, and 3 of the 4 tenants have been LHA - only 1 every caused me a problem.

There are landlords out there who will let to LHA tenants, but it can take a lot of digging to find them. As mentioned, contact the council, and also ask around all the letting agents in the area. Whilst a lot of ads have a blanket "No Benefits" splashed over them, that is sometimes the LA's policy and there are LLs who would take LHA tenants if asked.

Can she get a good reference from her exisiting/previous landlord? Would her previous employer also provide one? Would you/she be able to scrape together enough cash to offer 6 months rent upfront - this might give her the breathing space to find another job and get her income sorted.

Has she also looked into any other benefits she can get. Go to http://www.turn2us.org.uk/benefits_search.aspx

and get her to fill in all the info and see what else she might qualify for.