BTL for girlfriend on LHA?

Cautious_Optimist

Dan-Dan wrote: »

roll in the hay

A stable may actually be preferable to her current accommodation!


What about situations where LLs start ''dating'' their tenants, surely this must occur?


From what I have read online, so long as:
(a) I do not get her pregnant
and
(b) We do not move in and become ''partners'' - everything should be perfectly legal.

BigAunty

Cautious_Optimist wrote: »

This girl is not related to me.
What would be the situation were she my friend, but we were not ''dating''?

Read the Shelter link that I provided. It covers how partners are classed.

fairy_lights

I don't understand, if you and your girlfriend are serious why don't you buy a home for the two of you and move in together?

Pixie5740

Cautious_Optimist wrote: »

Is her current LL not doing just that?
What would you do in my situation?


My understanding was that 'Contrived Tenancy' is only applied in situations where the LL is either the ''partner'' or a family member of the tenant.

The current LL is operating a business whereas the lines with you as her LL are a little blurred.

Maybe you should contact the local council and run the idea past them before you go buying anywhere to see if they would consider it a contrived tenancy as ultimately that's their decision, not some strangers on the internet.

Would it be simpler all round if your GF just rented another place closer to you. Never mix business and pleasure and all that.

Cautious_Optimist

Pixie5740 wrote: »

A general rule of thumb for BTL mortgages is that the rent has to be 125% or the mortgage repayments or more. Can you buy property in your budget where this condition will be met with whatever cap on LHA your GF could claim or would there need to be a rent top up?

Are you fully prepared for all the resonsibilities that come with being a LL. The one about giving notice before accessing the property for example Would you be prepared to evict her if she went into rent arrears or broke the terms of the tenancy agreement? Paying income tax on your rental income..?

The local council might scrutinise the situation and if they deem it to be a contrived tenancy, for example if they suspect that you wouldn't evict her for rent arrears, she won't get LHA for your property.

Re the BTL mortgage, I would have to examine the figures further, but yes it could probably be done.


I'm assuming giving notice before a LL visiting the property is only required if the tenant requests it?


If she did fall into arrears with the rent, I'm sure this would be only temporary, as she would either be working or claiming LHA.
I would obviously need to be flexible, but I'd be a lot happier letting to someone I know and trust.


I would be a ''reluctant'' LL, but I don't like to see GF and child in poor accommodation.

HappyMJ

Cautious_Optimist wrote: »

Re the BTL mortgage, I would have to examine the figures further, but yes it could probably be done.


I'm assuming giving notice before a LL visiting the property is only required if the tenant requests it?

If the tenant requests the landlord to visit you don't need to give 24 hours notice you just turn up by agreement. The 24 hours notice is required for a visit by the landlord when the tenant is not expecting it.

If she did fall into arrears with the rent, I'm sure this would be only temporary, as she would either be working or claiming LHA.
I would obviously need to be flexible, but I'd be a lot happier letting to someone I know and trust.

If you wouldn't take immediate action to evict the tenant it points to a contrived tenancy You're running a business not a charity.

I would be a ''reluctant'' LL, but I don't like to see GF and child in poor accommodation.

Neither would anyone else so if you really want to help then rent somewhere nicer and bigger and have a life together.

RAS

If you are inclined to be flexible because she is a GF, you are getting into contrived tenancy territory.

The LA will want assurance that you will evict if she does not pay rent, just as you would anyone else.

fairy_lights

Cautious_Optimist wrote: »

If she did fall into arrears with the rent, I'm sure this would be only temporary, as she would either be working or claiming LHA.
I would obviously need to be flexible, but I'd be a lot happier letting to someone I know and trust.

But what would happen if you broke up? Things could get very messy.

Cautious_Optimist

fairy_lights wrote: »

I don't understand, if you and your girlfriend are serious why don't you buy a home for the two of you and move in together?

That is another option, but we have not been going out for long.


Also, it would mean me selling my current house, which would be complicated.


I'm not sure how my GF's child would react to living with a new man.


I've never lived with a woman before and all my previous relationships have come to an end (often without warning).
So I'm nervous about the potential disruption to my GF and her child.


Also, my GF is on benefits, so I'm guessing that would cause a lot of complications etc.

RAS

Not really.

She stops claiming.

You make a joint claim if you are entitled to anything as a couple, see www.turn2us.org.uk

However I understand your concern about providing stability for the child.