Renting a house from parents and housing benefit

Ygritte

shop-to-drop wrote: »

I see it's a one bed. I think they should sell it or rent it out legitimately. It is sickening that Londoners buy up these properties even more so when they leave them empty when they should be a home for a local person.

It was a un mortgageable mundic property that no one else wanted to buy.
Take your judgement elsewhere.

When_the_going_gets_tough

I am not sure that the rules are as strict as has been posted here. OP I think you would be better seeking advice from CAB or the housing benefit dept. I wouldn't give up - if - and this is really important - this is what you think will help you in the long run. If it would can you see the possibility of one day earning again and being able to pay at least some of your rent. I would be interested to hear Housing Benfit Officer - a regular poster - take on this.

tomtontom

bloolagoon wrote: »

That's a LL and responsibility though, including many other things that could go wrong - but it's then easier to move OP in. I can't see their council accepting as it stands so it's one way forward.

The OP does not want to put her parents to undue stress, and what you are suggesting will do exactly that. A move to Cornwall brings up notions of the easy life, not tenants trashing their beloved cottage

(Not suggesting all tenants are horrors!)

bloolagoon

marliepanda wrote: »

Also morally I find it dodgy. Chances are its going to be rented out cheap, if the rent will be cheap for daughter, so what if you have people who are super happy to get a nice cheap property only to be turfed out in 6 months as it was basically a ruse to make it look like a legit rental.

Sorry I dont agree with using people to help line your own pockets. I also assume that the HB office are not daft and will see through a 6 month 'its business, honest' rental.

Many want short term cheap rents, eg - people who buying and selling. Many rent a home to avoid completion day nightmare and are very happy for 6 months or less during this time. Using the time to move less stressfully between properties. As long as the renters know that their tenancy is unlikely to be extended they are not being used.

Their rent should be identical to the daughter, same deposit, same checks/references willing to take on "HB" claimants etc.

pmlindyloo

Lots of doom and gloom here.

If your parents use a proper contract and fulfil all the requirements of being a landlord (gas safety certificate etc) and would treat you as any other tenant then the council would have to prove that it was a contrived tenancy agreement set up only to obtain HB.

Reading through your previous posts it appears that you are currently in a two bed place and probably struggling to pay the rent with the 'bedroom tax' applied. Is this still the case?

You are also unwell and your parents are trying to help.

These may be good reasons to 'prove' that it is not a contrived tenancy.

A low rent in these circumstances would be only one factor that the council would look at. After all there is a set limit for the amount the council would pay anyway, so this is not the problem that people sometimes think it is.

You need to speak to your local council about this. If they say they would refuse HB in these circumstances then you have the right to appeal this.

My concern is your moving to Cornwall itself. Are you sure that this is what you want? Would you be far from family and friends?

Hope you don't think I am prying but you did say you were unwell. Is this move in your best interests? A new start isn't always as you think it will be.

Anyway, don't be put off by any posters saying this is a contrived tenancy agreement. It is up to the council to prove it is.

Mojisola

pmlindyloo wrote: »

You need to speak to your local council about this. If they say they would refuse HB in these circumstances then you have the right to appeal this.

My concern is your moving to Cornwall itself. Are you sure that this is what you want? Would you be far from family and friends?

Good post from lindy - especially these two points.

Your parents are struggling to keep both homes going so renting out the one in Cornwall is a sensible stop-gap for them.

Your HB is going to go into someone's pocket - I don't see why it's alright for that to be a stranger but wrong if it's your parents.

Depending on circumstances, another option would be for them to rent out the Cornish property to someone else and use some of that money to help you pay your rent.

Do think about the isolation in Cornwall and be sure it's the right thing for you to do.

bloolagoon

tomtontom wrote: »

The OP does not want to put her parents to undue stress, and what you are suggesting will do exactly that. A move to Cornwall brings up notions of the easy life, not tenants trashing their beloved cottage

(Not suggesting all tenants are horrors!)

I would think being a LL is very stressful at times but they can't say they want to be a LL only for OP.

The other option is that OP rents privately in Cornwall and the parents move into the property. Can't have cake and eat it which is why they look at family rentals. If they aren't prepared to take the risk it's going to be very hard to convince the council it's not contrived.

Although it's only reason the council that can decide I'd be surprised if allowed as they have never rented before and are only doing so to help OP. As said we would all rent to children to fund their inheritances otherwise.

missbiggles1

Dawniedawn wrote: »

It doesn't have a mortgage. It's literally a tiny one bed mud hut (mundic) that they were able to buy outright for 60k with a lumpsum from my dads police pension. They've also paid off their home here so no mortgages.
But I guess that probably doesn't help anyone's view of it as it sounds like they are rich. They aren't. All their retirement money is now tied up in property so they need to make a move soon. Thankfully the Cornish place doesn't cost much to run right now as it's empty most of the time.

I dunno. Lots to think about and it sounds like it will just be a bit of a witch hunt that I don't want to drag them through anyway.

If your father has enough police pension to have given him a £60k lump sum, this can hardly be the case.

pmlindyloo

missbiggles1 wrote: »

If your father has enough police pension to have given him a £60k lump sum, this can hardly be the case.

The OP has been 'forced' to give details of her father's finances because of the tirade about 'lining his own pockets'.

For goodness sake. Landlords are always going to benefit from people paying rent to them, whether it be from people's own pockets or from tax payers' money.

Where would you put people who have to rely on benefits because they are poorly or disabled or for any other reason.

This is not the place to rant about the benefit system and who deserves what.

Just give the facts.

Ygritte

missbiggles1 wrote: »

If your father has enough police pension to have given him a £60k lump sum, this can hardly be the case.

You can take part of it lump sum to have a much much smaller weekly amount.
Trust me, he was only a regular PC and was medically retired in his early 50s due to injury.

I'm not really enjoying what's being said and implied here so I'm going to leave this thread. It was literally one little conversation with my dad, who is worried about me and worried about leaving me behind when they make the move.
My parents are very honest people who've worked hard their whole lives and just want to help their daughter. Not themselves.

Thank you to those who been helpful and just kept to the facts x