Renting to a relative in receipt of LHA/Housing Benefit?

milkbottletops

Mardle wrote: »

Would you still use a letting agent or would you manage the property yourself?

I would look to manage the property myself, because this cuts down the amount of rent the relative has to top up. I would prefer to pay an agent because they know what they're doing and I'm an amateur, but I'm trying to help family out.

I wasn't aware that they didn't have to leave after their tenancy was up...do I not have to agree that they can stay/go on the periodic tenancy? Forgive my ignorance but what purpose does the tenancy agreement serve then? To be honest, if a relative of mine refused to leave my house (without a seriously good reason) when they'd signed an agreement etc...I would be absolutely livid and I'd have no problem whatsoever with starting proceedings to evict them.

Thank you for the links, il have a read later.

Beckyy

I would seriously, seriously not recommend it - too messy if things go wrong.


Your mortgage company (if you have one) may not allow you to let to relatives either.

milkbottletops

Thank you Becky. I have consent to let from the lender, but I'm not sure what it says re letting to relatives...il have to speak to them.

Annisele

If you had a BTL mortgage, you wouldn't normally be allowed to let to a close relative. For CTL it will depend on the conditions your particular lender has attached to the consent.

The FCA's Perimeter Guidance says a close relative is:

the borrower's spouse, civil partner, parents, grandparents, siblings, children and grandchildren. An unmarried partner of the borrower whose relationship with the borrower has the characteristics of the relationship between a husband and wife is also included; this can include a person of the same sex as the borrower. Stepchildren, however, would seem to be excluded.

That isn't strictly relevant to you, because you seem to have a CTL rather than a BTL mortgage, but it wouldn't surprise me if your lender used the same definition of "close relative" for both cases. Your extended family person might be a bit remote to cause a problem - but I still don't think you should mix business and family.

milkbottletops

Thanks, we do not have a BTL mortgage. Also the relative does not fall within those bounds, but I will certainly speak to the bank to make sure, because I want it all above board!

Beckyy

Check your landlord insurance also, I never looked into renting to a relative however ours has some stipulations about tenants so I wouldn't be surprised if family was one with some insurance providers.

I totally see the sense of needing to help out family, but as a LL myself I would honestly avoid it and just give as much helpful advice to them as you can. Telling them your mortgage provider does not allow you to let to relatives would be sufficient enough to let them down without needing further justification.

G_M

milkbottletops wrote: »

..... I would prefer to pay an agent because they know what they're doing and I'm an amateur, ...

:rotfl::rotfl::rotfl:

Do NOT take this for granted. Read my link above.

I wasn't aware that they didn't have to leave after their tenancy was up...do I not have to agree that they can stay/go on the periodic tenancy?
No.
Forgive my ignorance but ...

You really do have a huge amount to learn, and taking this decision before understanding what's involved would be mad.

Learn, understand, then decide.]

Start with the links I gave you.