Renting annex to a parent - can they claim hb to pay their way?

minnymoo12345

Can I rent an annex from my son? I currently receive hb, due to ill health (broken my back twice and had a heart attack 12 months ago). Struggle to walk and do normal day to day tasks. I will receive my pension in 15 months.

My son and daughter in law are looking to buy a new home and would look at buying one with an annex so I could be close to them. The issue is they would have to have a rent paying tenant to ensure they were able to lead an ok lifestyle, otherwise money would be extremely tight.

Would I be eligible for hb if I rented their annex from them? the house is on a split level and the ground floor is a complete self contained annex / flat with it's own front door and all facility

Thanks

rogerblack

In principle, as I understand it, yes.
In practice, it will be problematic.

This is as the tenancy has to be an ordinary one, as anyone walking in off the street might get.
It has to comply with all of the normal landlords requirements.
It cannot be on a noncommercial basis - it has to be at a reasonable rate, compared to the market.
They must be prepared to evict you, if you do not pay.

You do not receive HB due to ill health - you must be on another benefit which qualifies you for this.

londonbabe73

The answer is no , hb do not pay where a close relative is living in the same property as effectively the tax payer is funding your sons mortgage
If I had my mother living with me I wouldn't be asking her for rent let alone asking for hb it's a tad cheeky .

withabix

Rules are here on Shelter website:

http://england.shelter.org.uk/get_advice/housing_benefit_and_local_housing_allowance/housing_benefit_if_renting_from_a_family_member

paddedjohn

Your son may need a buy to let mortgage to do this which will cost him more.

miduck

Do you pay council tax on the flat separately?

BigAunty

If they have sufficient salary according to a lender to buy a large place with a separate annexe, why would they need income from a lodger to service the mortgage? And in just over a year, you receive your pension and can contribute more.

Can you not pay towards your share of the bills from your sickness or disability benefits? What income do you have? Has anyone checked your general benefit entitlements to see if you are receiving the correct ones or are due more?

Tenants in the same property as their landlord to whom they are closely related can never receive HB - they have no liability to pay rent to them, and therefore have no entitlement to HB. It is expected that close family members that live together sort out their living expenses between themselves, for example, by paying board/keep to each other, rather than being funded from the public purse.

If the annexe is classed as an entirely separate property, perhaps with its own separate entrance and perhaps with a separate council tax liability, this may be possible but you'd have to look into HB rules regarding a separate but adjacent self contained property to see if you get classed as a tenant in your own right who can have HB rather than a live in lodger (excluded occupier), someone who shares common space with the landlord.

There is a poster on this forum that works in HB for the local council, hopefully they will pick up this post and answer it.

BigAunty

minnymoo12345 wrote: »

... I currently receive hb, due to ill health (broken my back twice and had a heart attack 12 months ago). ..

As per the previous post, claimants don't receive HB directly for having health problems but for having a low income - healthy people in employment can receive HB.

Mojisola

minnymoo12345 wrote: »

I currently receive hb, due to ill health (broken my back twice and had a heart attack 12 months ago). Struggle to walk and do normal day to day tasks. I will receive my pension in 15 months.

It would be worth checking whether you are entitled to DLA if you have mobility problems. If you claim before you are 65, you can keep getting it after you pass pension age.

Do the sums and see whether you would be able to give you son enough towards the house from your benefits and pension.

Gentile

Why should the tax payer fund a property that your son cannot afford to buy ? Tell him to buy the house if he can afford it and you can live there for free because you are his father.

pmlindyloo

minnymoo12345 wrote: »

Can I rent an annex from my son? I currently receive hb, due to ill health (broken my back twice and had a heart attack 12 months ago). Struggle to walk and do normal day to day tasks. I will receive my pension in 15 months.

My son and daughter in law are looking to buy a new home and would look at buying one with an annex so I could be close to them. The issue is they would have to have a rent paying tenant to ensure they were able to lead an ok lifestyle, otherwise money would be extremely tight.

Would I be eligible for hb if I rented their annex from them? the house is on a split level and the ground floor is a complete self contained annex / flat with it's own front door and all facility

Thanks

I don't think the OP said that they would need a lodger to pay the mortgage, just the income from a lodger to lead an OK lifestyle, otherwise, moneywise it would be very tight.

I think it is possible that the OP might be able to claim HB if, as described, the annex is an entirely separate entity (liable for CT, own utilities )and registered as such. Plus, a proper tenancy agreement drawn up.

That would then make the question of a Buy to Let Mortage relevant.

If it isn't a separate entity (difficult to tell, OP mentions a separate front door) then I don't think HB would be awarded as the OP would not be liable for rent and would be effectively living with son.

The OP's son needs to look at these points.

The OP would be best to ask their local housing office.