Renting from family- complicated.

AlexMac

Facts are what the OP invites, not catastophising or moral judgements. Especially as the enquiry is made in good faith, and the family are probably doing her a favour with a soft rent.

Whether or not her in-laws are declaring income is not what's being asked about- that's their business, although the OP probably doesn't want to compromise them. In practice, and if you first do your research (as well as asking a bunch of random people on this forum) then have a chat to the family, they might decide to be helpful.

If they aren't already declaring your £500 a year rent, it will be very easy for them to simply start declaring the rental income and to keep basic records to fill in a few boxes- literally six or seven figures - on their annual tax return. HMRC would never bother to cross-check with whatever you say to the Council about the last couple of years' rent for such a trivial sum. And by the time they offset mortgage interest, maintenance, and other eligible expenses against the income, they are probably able to show negligible profit, or even a tax loss!

So lets keep it simple

I'm no expert, but I suggest you look at http://england.shelter.org.uk/get_advice/housing_benefit_and_local_housing_allowance/what_is_housing_benefit/housing_benefit_if_renting_from_a_family_member
which by my interpretation says you can claim HB from family if they don't live in the same flat, and its a pukka agreement. In fact you'd be doing them a favour by co-operating in them setting up a formal Assured Shorthold Tenancy, as they can then evict you if you fall out (lol). It doesn't even cost them anything, and I assume there's no deposit, so need to register a deposit with the government scheme, although they (or you for them?) ought to get a Gas Check cert for £50.

Anyway, good luck sorting it out. It's not the probelem which some suggest

SeduLOUs

Don't forget that if they suddenly decide to go 'legit' and want a genuine LL/tenant relationship, then they also need consent to let from the mortgage lender.

Pixie5740

It's not complicated at all. You pay rent therefore a tenancy exists. Whether or not your partner's sister is doing all she is supposed to as a landlord is another matter.

When you apply for housing benefit it might be asked for a copy of your tenancy agreement and by the sounds of things you don't have a written tenancy agreement. That's not to say that you couldn't get one drawn up.

sheramber

AlexMac wrote: »

Facts are what the OP invites, not catastophising or moral judgements. Especially as the enquiry is made in good faith, and the family are probably doing her a favour with a soft rent.

Whether or not her in-laws are declaring income is not what's being asked about- that's their business, although the OP probably doesn't want to compromise them. In practice, and if you first do your research (as well as asking a bunch of random people on this forum) then have a chat to the family, they might decide to be helpful.

If they aren't already declaring your £500 a year rent, it will be very easy for them to simply start declaring the rental income and to keep basic records to fill in a few boxes- literally six or seven figures - on their annual tax return. HMRC would never bother to cross-check with whatever you say to the Council about the last couple of years' rent for such a trivial sum. And by the time they offset mortgage interest, maintenance, and other eligible expenses against the income, they are probably able to show negligible profit, or even a tax loss!

So lets keep it simple

I'm no expert, but I suggest you look at http://england.shelter.org.uk/get_advice/housing_benefit_and_local_housing_allowance/what_is_housing_benefit/housing_benefit_if_renting_from_a_family_member
which by my interpretation says you can claim HB from family if they don't live in the same flat, and its a pukka agreement. In fact you'd be doing them a favour by co-operating in them setting up a formal Assured Shorthold Tenancy, as they can then evict you if you fall out (lol). It doesn't even cost them anything, and I assume there's no deposit, so need to register a deposit with the government scheme, although they (or you for them?) ought to get a Gas Check cert for £50.

Anyway, good luck sorting it out. It's not the probelem which some suggest

Rent paid is £400 per month not £500 per year.