The 'I'm less money-idiot more money-savvy' Diary

Eager_Elephant · 17 January 2015 at 12:29PM

judi24 wrote: »

I have been thinking aboutre mortgaging and using a little equity to put a deposit on a flat and rent it to her but not sure if council will pay housing benefit if renting from a family member. Its not to make any sort of profit just to give her somewhere to live that means she has security and affordable home. I Would love to just buy her a home - but I am not sure I will ever be able to afford that!!!

You can rent to your mum and for her to get Housing Benefit but you have to prove it is a commercial tenancy and not contrived.

The best thing to do would be to buy a flat and then rent it out for a few years to different tenants and then rent to your mum and then you can prove you haven't done it just to take advantage of the Housing Benefit system.

judi24 · 17 January 2015 at 2:22PM

Thanks Eager Elephant - that is really good advice - she isn't ready to give up her church work yet so quite happy living where she is and getting the help to pay the rent - but I think she is thinking about the future when she is no longer able to do the work. She also needs to think about the style of house she's in - she is in a cottage which will be terrible if her hips get worse as the stairs are really steep! It is food for thought for when I am debt free

judi24 · 17 January 2015 at 2:56PM

Dansmam your virtual slimming club might be just the thing - I will go and have a look - I really don't want to do a slimming club again as I have tried so many times - I loose a bit and put it back on again! so its a long term change in mind set that is needed just like my money saving plan!

Yes once upon a time I would have done the £37 a month - but I have learned a lot and immediately worked out what it would cost in the long run which put me off pretty quickly!!!

Well back from shopping. Had to take DD3's dress for the wedding back as it didn't fit and got another but it had been reduced some more saving me another £6 - BUT (hangs head in shame!!!!:() I was tempted by some 70% off bargains and bought a new dinner service, some lovely matching mugs and table mats - total cost was £31 so taking the £6 I saved on the dress I spent £25 - they are gorgeous! White with red poppies and will be lovely when I redecorate my kitchen (going to do that when I'm off in Feb!) - mugs should have been £25 for 4 - who pays £25 for 4 mugs??? :eek: ( I know it was naughty though as definitely not budgeted for!!!) - a real bargain just checked my receipt and the 3 items should have been £117!)

Also spent £76 in Al*I so underestimated by £16!!! But didn't quite stick to the list - a few extra bits sneaked into my trolley - but did include a few big things that I won't need for a month and a bottle of wine for me!!!

)

[Deleted User] · 17 January 2015 at 3:23PM

We rented a house from my step son, as long as your Mum declares its your flat and she pays the market rent you will be ok and she will be able to get housing and Council tax benefit.

You need to make sure her rent payment covers the cost of the mortgage and you will only be able to buy under the buy to let scheme. You will also need landlords insurance. You would need to check the 'local rate' for the flat.

It might be worth looking at sheltered housing especially as she has a mobility problem, there are often long waiting lists and it could be a long time before she was offered anything which would allow her to continue as she is for the time being.

judi24 · 17 January 2015 at 3:56PM

That's good to know csarina - did you step son have the house rented to others before you rented it as Eager Elephant suggested? There are some affordable warden controlled apartments near by but I think it would be difficult to rent to someone else on a short tenancy first as people wouldn't want to move on at that age - that would be the ideal solution though as it is accessible and would be suitable as she got older and only a few min from me

beanielou · 17 January 2015 at 6:50PM

Happy new house things ~ enjoy :j

[Deleted User] · 17 January 2015 at 9:23PM

judi24 wrote: »

That's good to know csarina - did you step son have the house rented to others before you rented it as Eager Elephant suggested? There are some affordable warden controlled apartments near by but I think it would be difficult to rent to someone else on a short tenancy first as people wouldn't want to move on at that age - that would be the ideal solution though as it is accessible and would be suitable as she got older and only a few min from me

No he bought the house and finished off the renovations that had been started, we moved in just after the work was finished, were there 4 years before we moved on.

Each year when we filled in the forms we declared that he owned the flat, but that we did not receive any benefit from a reduced rent, paid the full rent and we got both HB and CT.

judi24 · 17 January 2015 at 9:47PM

That's interesting csarina - I will certainly consider my options carefully - but would love to help my mum as she's spent many years helping me!

judi24 · 17 January 2015 at 9:55PM

Well my trip to the trampoline place was a disaster!!! I somehow had booked the wrong day and my booking is for tomorrow!!!!:mad: I had 3 disappointed kids so I had a quick think and we ended up at laser quest instead!!! It was great fun we had such a laugh but it cost me £23 when I had already paid for the trampoline place!!! :eek:Not very MSE at all but I had driven an hour to get there so didn't want to just come home! I have emailed the trampoline place to see if I can change tomorrows booking for another date as I don't really want to drive back there tomorrow and Sunday evenings are usually just homework and chilling nights - I will ring them tomorrow and see what they say if the haven't replied - so I have had a very spendy day!!!:(