Renting Property to Family- Housing Benefit?

pmlindyloo

Just another idea to put into the mix.

Have you considered a mobile home for your mother? I don't know where you live but if there is a site near you they may have a suitable one for £80000.

My Mum lived on a lovely site. Shop, swimming pool and social club. She was very happy there as it was very quiet and peaceful yet with neighbours her age to socialise with (if she wanted to)

I know financially buying one is not a good investment but if you are not concerned about this then it may be worth a look.

Another idea might be to google 'housing for the elderly' in your area. There may be a scheme where your Mum could 'part buy, part rent' or just rent. This would give her security and would probably qualify for HB if necessary/once her savings ran out. Again, probably not good investments (?) but may be a solution for her needs.

cattie

I don't know where you live, but I'm on the border of London/Kent & even here it's quite easy to find a sheltered or retirement property for between £90-£120k, depending on size. This may well be a better option for MIL as she would practically be guaranteed quiet, older neighours. Some developments offer social activities & wardens, others offer nothing more than the property & the security of knowing you are with like minded people in your later years.

Yet another option is to look into Alms houses accomodation, but usually available only to people with limited means, aged 60 or over. I had a friend live in one a few years ago & she had a lovely 1 bed house with a nice little courtyard garden.

Better_Days

I would say a mobile home park is definitely worth considering, for example this is one in Suffolk
http://www.rightmove.co.uk/property-for-sale/property-19841997.html

dimbo61

Plenty of over 55,s flats/appartments you can rent in my part of the woods ( cheshire)
My Dad lives in a one bedroom flat in chorlton manchester having sold his house 8 years ago and loves it.
Friends around him to talk too and he joins in many social meetings
Take your MIL around a couple of local places ( close to shops+ bus routes )

theartfullodger

One other place to look: Surprisingly often (but not always - it depends on the area..) the local council/Housing Association will have housing just for over 50s/55s/60s/65s... and there may be some available - I know one area where council housing is like hen's teeth, but over 55s available..

Might be worth checking!!!

Beckyy

What area are you in?

I think there must be a better solution such as buying a smaller house outright.

Technically, you would be gaining (£80K) if you were to take out a BTL mortgage and rent to your MIL, because you would have the £80K equity in the house. You also have the issue of whether you could actually get a BTL mortgage, and if you could afford it yourselves.

Does she have any other savings or assets?

real1314

roger196 wrote: »

Not entirely clear whether MIL wants to move or not.

If she does, have you considered buying a property jointly with MIL. Say property is £160k, she can put in her £80k for her half share and you buy the other half share using a mortgage or own savings. You can then rent your half share to MIL at a normal commercial rent. AFAIK this rent will be eligible for HB (others may correct me on this point), but you will need a BTL mortgage and gas certs etc. MIL has not deprived herself of any assets which will still be available for care homes fees. MIL's £80k is not counted towards her capital for benefit purposes as it is her ppr. The only downside is if you ever had to go on benefits, your half share would count as your capital and being over £16k would deny you JSA/HB/CTB.
IHT is not an issue as MIL's estate within nil band.

You cannot claim HB if you are a joint owner. You also cannot get most BTL mortgages to rent to relatives, nor to rent to a joint owner of the property. :cool: