Renting to a family member & housing benefit

ninab_2

Yes I totally get that, we are not !!!!!!!!!!s always worked and so has she, never claimed a bean! It an unfortunate situation shes in, a situation im not at all happy about.

It will be a genuine tenancy, proper agreement drawn up etc. Sounds like she will have to continue with LA homeless application.

ninab_2

not sure why !!! are shown, I didn't type that, the word was free loaders

shedboy94

The rules are a bit stupid though. If the OP rents out the property to someone else on HB then the taxpayer is still paying for their mortgage. If the daughter rents someone elses house then she is still claiming HB and paying someone elses mortgage.

tom717

nannytone wrote: »

if you already had a rental property that you let out, and your daughter then moved in, there wouldnt be so much of an issue as you would have already been an established landlord.

Sorry to go a little off topic, but this has got me wondering. I rent from my parents and I pay less than market rent (although I could find somewhere else at this rate if i had to). They have had two previous tenants. If I lost my job would I be unlikely to be able to claim housing benefit.

jacques_chirac

Is there a reason why she cannot rent privately?

ninab_2

shedboy94 GOOD POINT !!!

nannytone_2

it isnt as silly as you think.

a family with 6 members could all buy a house and let them out to eaxh other.
if they lived in their own homes, they would get SMI that covered part of their mortgage interest payments.
by renting them to each other the mortgages would be met in full.

BurnleyBob

It will raise eyebrows - first buy-to-let and first tenant is daughter who requires Housing Benefit.

However, the OP and her girl have the right to be believed that the proposed arrangement isn't a contrived scheme and remember that if the LA deny the claim it can be appealed and a judge at a tribunal will then get to make the yay or no decision instead of the LA.

shedboy94

nannytone wrote: »

it isnt as silly as you think.

a family with 6 members could all buy a house and let them out to eaxh other.
if they lived in their own homes, they would get SMI that covered part of their mortgage interest payments.
by renting them to each other the mortgages would be met in full.

It's highly unlikely 6 members of a family would get mortgages if they were all on benefits.

nannytone_2

shedboy94 wrote: »

It's highly unlikely 6 members of a family would get mortgages if they were all on benefits.

possibly its a bit extreme.

but what would stop 2 sisters/brothers doing a houswap to get their mortgages paid?