Renting to a disabled relative

dantroberts

I want to know if I can buy a small flat for my mum and let it out to her; currently she is living with me in my small house, but its getting too much for her and too stressful for myself - I cannot become a carer myself because i work too many hours - and I cannot claim any benefits to help because of this.

I have considered asking her to rent from a private landlord - but with the modifications and her needs its very unlikely many are on offer. The other solution is sheltered housing which I am very dubious about.

The ideal solution would be for me to buy a property, adapt it to her needs and let it out to her - but I'm not sure if she would be able to claim rent/housing allowance?

I've heard that if a tenancy agreement is made up then she could do this? On the flip-side could I appoint as estate agent to rent it out for me, to her?

i'm really grateful for any feedback!

Errata

Read up on contrived tenancies.

pmlindyloo

dantroberts wrote: »

I want to know if I can buy a small flat for my mum and let it out to her; currently she is living with me in my small house, but its getting too much for her and too stressful for myself - I cannot become a carer myself because i work too many hours - and I cannot claim any benefits to help because of this.

I have considered asking her to rent from a private landlord - but with the modifications and her needs its very unlikely many are on offer. The other solution is sheltered housing which I am very dubious about.

The ideal solution would be for me to buy a property, adapt it to her needs and let it out to her - but I'm not sure if she would be able to claim rent/housing allowance?

I've heard that if a tenancy agreement is made up then she could do this? On the flip-side could I appoint as estate agent to rent it out for me, to her?

i'm really grateful for any feedback!

If you buy, adapt and then rent it to her it could be possibly be seen as a contrived tenancy in order to receive housing benefit.

The tenancy agreement would have to be a commercial one. i.e if she defaulted on her rent you would be prepared to evict her etc etc. You would need to take on all the responsibilities of a landlord - gas certificates etc Using a letting agent wouldn't help I don't think - just paying them a sum of money for doing not very much.

The decision as to whether this would be seen as a contrived tenancy is taken by a decision maker. The fact that you have adapted it for her may help. I'm not sure. The fact that you haven't previously let it out wouldn't help.

HousingBenefitOfficer, who posts on here, may be more helpful on that point.

I am not sure why you are not in favour of supported housing? Have you spoken to the council and asked for some advice about accommodation for your Mum? Where did she live before she moved in with you? What are her care needs? Has she been assessed by adult social services?

dantroberts

Thanks for the heads up on 'contrived tenancies'; I'm not sure my situation falls into this category:

'The close relative provisions only really come into play when the claimant and their landlord are living in the same house. but when people rent off relatives, the possibility of contrivance does have to be considered'.

Does this sound clearer? Any other suggestions are that I want to commit fraud and make money out of my mums condition and situation - but how would I be doing that?

pmlindyloo

dantroberts wrote: »

Thanks for the heads up on 'contrived tenancies'; I'm not sure my situation falls into this category:

'The close relative provisions only really come into play when the claimant and their landlord are living in the same house. but when people rent off relatives, the possibility of contrivance does have to be considered'.

Does this sound clearer? Any other suggestions are that I want to commit fraud and make money out of my mums condition and situation - but how would I be doing that?

But your situation does fall into this category. Basically you are buying a house for your mother and then asking Housing Benefit to be paid.

I do understand what you are saying because in theory your mum might get HB if she rented privately. However, this isn't how it works.

The point that you have to prove is whether you are buying the flat in order to take advantage of the benefit system.

We know you aren't but you do have to be aware that it will be 'looked at'.

princessdon

dantroberts wrote: »

Thanks for the heads up on 'contrived tenancies'; I'm not sure my situation falls into this category:

'The close relative provisions only really come into play when the claimant and their landlord are living in the same house. but when people rent off relatives, the possibility of contrivance does have to be considered'.

Does this sound clearer? Any other suggestions are that I want to commit fraud and make money out of my mums condition and situation - but how would I be doing that?

Because the govt would be paying your mortgage.

The main difficulty is that you are BUYING purely to rent for housing benefit.

It's not the same as you already renting then they lose their job.

There are things you can do to limit being investigated as a contrived tenancy but as I don't think you'd spend thousands adapting for joe bloggs off the street, you may find it hard.

Also if you need a mortgage many will not consider a buy to let with a relative as tenant.

In short if joe bloggs was your mum would you still buy to rent?

Will you use an agent?

Will you get a deposit from them and place into a scheme?

Will you evict if in arrears?

You need to show that you would treat mum no different from anyone else to have any chance at fighting a contrived tenancy investigation.

marliepanda

As you are not already a landlord and haven't previously rented a property it's unlikely it will not be seen as contrived. Not 100% but a similar thread was in the benefit forum where a mum wanted to buy a house and rent to her daughter (already needing HB) and was told no.

It's not necessarily fraud, but you will be making money from your mums condition from the tax payer, as the HB will be paying your mortgage. May not be much money on your table from it, but it's buying you a house.

As you are specifically adapting it for your mum, and buying it for your mum, will you really be able to convince them you'd evict your mum if she got into rent arrears?

dantroberts

Thanks pmlindyloo.

She split up from my dad and moved in with me over seven years ago; she has been assessed and is disabled and becoming increasingly more so both physically and mentally to an extent, which is causing all sorts of problems. Maybe its best if she rents from an unrelated private landlord - but she would'nt get the same support. The issue is not just about the landlord tenancy situation, but also about ensuring that she is not going to be kicked whenever the landlord decides...I can understand the issues with contrivence and this is far from it. It really is a difficult situation to judge.

carefullycautious

Local Authority or Housing Associations will assess her for housing given that she has a medical need.

Have you looked into this in your local Area?

marliepanda

You cannot have it both ways sadly

You say she has all these needs and support, but you're wanting someone else to pay for you to get a house, not just get her that a support.

If she needs to help maybe she should stay with you rather than living alone, or get support in sheltered housing. Or buy her this house if you want to help her, but not expect benefits to pay you for this.

This is just not how it works, or everyone would buy the perfect property for their relatives and then get the taxpayer to pay for it...

dantroberts

Good questions marliepanda and princessdon.

She cannot get up stairs anymore and does'nt walk very far; so a modified shower and downstairs bedroom are needed. Its seems awful to think that I'm making money or benefitting from my mums condition or needs, but I cannot carry on with the current situation. Its horrible to think that I will have to effectively kick my mum out and give up on the situation and hope social housing can support her...and probably be far more costly in the longer term. Thanks for all the considerations so far, even the difficult ones that have to be suggested.