Can housing benefit be paid to a family member?

sniperpenguin

My mother lives in a 3-bedroom council house on her own, which she has maintained well. Unfortunately she is 59 and has no savings to speak of. She receives DLA (cancer twice plus others) and housing benefit for the rent.

We have often spoke of buying the house (nice area etc) and letting her live out her years there, as well as being an future rental / investment for myself + fiancee.

The question is that if we buy the house for her, can I act as the Landlord and have her housing benefit continue (as though paid to a private landlord) by setting her a minimal rent thus helping towards the mortgage costs? Or is this underhanded?

thesaint

It is possible, but there are many hoops to jump through.

gymbo

used to work in Housing Benfits and in you can't calim HB for a property that you previoucly owned so I would say a definite no

Scarlett1

sniperpenguin your mum could take advantage of the righ to buy but I dont see how you could if you dont rent the property, and some LAs wont pay housing benefit to a family member.

thesaint

gymbo wrote: »

used to work in Housing Benfits and in you can't calim HB for a property that you previoucly owned so I would say a definite no

Definite is a strong word to use. I know of two cases where HB is paid in this circumstance.

crispeater

why not ring the benefits office and explain the situation and ask them least your get the right answer

real1314

gymbo wrote: »

used to work in Housing Benfits and in you can't calim HB for a property that you previoucly owned so I would say a definite no

From what the OP has said, their mum doesn't own the property.

If their mum buys it through right to buy, then this would apply, but if the OP buys it for her (but then wouldn't get any discount) then HB would be payable subject to it being let on a commercial basis.

crispeater

my mum is my landlord/lady and i get HB we did have to go to an interview and prove that it was done on a commercial basis as the above poster said.

bigbill

Does mum get Income Support?

sniperpenguin

Does mum get Income Support?

Not sure - I thought DLA replaced income support?

Zingara

This may be wrong (currently off sick and a little rusty on rules and regulations). Unless you are living there at the moment and your name is on the tenancy agreement then I don't think that you would be able to buy the house for her. To be eligible for right to buy you have to have lived there for x number of years.

Your mum will obviously be entitled to buy the property and her name will be on the deeds/mortgage agreement. However, she then will not be entitled to HB to pay the mortgage itself (though may make the interest payments) and she would need to pay this herself. Eventually she would be entitled to sell the property on but not for some time as there is usual something in the deeds that state she has to repay the discount if she sells within a certain number of years.

It would be better for you to seek independent advise as to what you want to do, try CAB.

Karen
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