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housing benefit pre-determinations??

pariskate
Posts: 300 Forumite


Hello looking for a bit of insight into how HB calculations work,
I am in the process of letting a house to a friend - her house is being repossessed and she needs a place quickly.
I was going to ask £600. The HB pre-determination has come back as £500 standard rent for this type of property. I understand that the HB will be calculated on the basis of this rent (eg if my friend gets 90% it will be 90% of 500) but will she be penalised for choosing a more expensive house - will they award her less than if the rent was £500?
Anyone know?
thanks
kate
I am in the process of letting a house to a friend - her house is being repossessed and she needs a place quickly.
I was going to ask £600. The HB pre-determination has come back as £500 standard rent for this type of property. I understand that the HB will be calculated on the basis of this rent (eg if my friend gets 90% it will be 90% of 500) but will she be penalised for choosing a more expensive house - will they award her less than if the rent was £500?
Anyone know?
thanks
kate
Saving to pay the tax man
0
Comments
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No, what will happen is she will be expected to make up anh shortfall of the rent that hb doesn't cover herself.The bigger the bargain, the better I feel.
I should mention that there's only one of me, don't confuse me with others of the same name.0 -
cattie is right, she will be expected to make up the shortfall.
This can be a problem if she is short on money and can't afford the shortfall. £150 a month is a large shortfall for someone on limited income. Difficult situation to be owing money to a friend.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
Hi If someone wants to sell or buy house, you can read it
http://www.getwisely.com/_housing_benefit_pre-determinations-main.htmlOperation Get in Shape
MURPHY'S NO MORE PIES CLUB MEMBER #1240 -
Thanks, so long as the HB won't penalise her for wanting a 'more expensive' house then I'm sure she can make up the shortfall. Maybe I'll charge less even as I'm not looking at this as a particularly commercial let.Saving to pay the tax man0
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Are you charging the average rent for a property of your size in that area as if you are she has the right to appeal.
Also if you have a garage, that will take the rent down, if you have a conservatory that can affect it.
But if they will only say £500 is fair then yes she will have to pay the extra herself.
Also is the house the size she needs? For example we are a 3 person family therefore only need a 2 bed house. If your house is bigger than her needs that will reduce how much she will get out of the fair rent amount.0 -
Thanks, so long as the HB won't penalise her for wanting a 'more expensive' house then I'm sure she can make up the shortfall. Maybe I'll charge less even as I'm not looking at this as a particularly commercial let.
what a nice friend you are, well done for helping her out at a difficult time. I hope all goes well for you.0
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