Rent from family and on partial housing benefit - considering purchasing share

snowdown

Pixie5740 wrote: »

When you pay rent you are paying for the roof over your head and for someone else to be responsible for maintenance & repairs, it has nothing to do with someone else's mortgage. There's more to home ownership than just paying the mortgage so if you are in the situation where you need assistance to pay your rent you might find the reality is that you are not in a financial position to be a home owner.

I might have to look into shared ownership schemes with housing associations then. We do pay for maintenance and repairs otherwise they wouldn't get done so we would be quite happy to continue doing this in our own property.

NYM

snowdown wrote: »

I am not a benefit cheat. Housing benefit allow renting from family members and I am not cheating them out of anything. We do have a deposit but it is under 6k so not doing anything wrong on that account. As for Ebay I probably make £100 a year if that and I expect if I was to ring them up to decare it I would be laughed at down the phone!

Why do you want to buy that particular property ?
How 'close' is that family member? Is it a parent, sister..brother?
Would they evict you if you couldn't pay your rent?

snowdown

Deleted_User wrote: »

If you have enough disposable income to be able to save 6 grand then you do not need housing benefits.

Well housing benefit obviously disagree on that count or we wouldn't be entitled to them.

csgohan4

snowdown wrote: »

I might have to look into shared ownership schemes with housing associations then. We do pay for maintenance and repairs otherwise they wouldn't get done so we would be quite happy to continue doing this in our own property.

A Shared ownership scheme exposes you to far greater maintenance charges. We're not talking about a cracked bathroom tile, but say a whole re roofing, new lift, repaint of exterior.

Costs thousands if not tens of thousands. All shared amongst the the other home owner/ part owners

You pay your share as if you were 100% home owner before you ask about discount as you only own x amount.


Not to mention insurance costs and noone to cry to if you have a problem with your property you can't fix, like plumbing/ Boiler

Replacing a boiler can cost around 3k, not cheap and certainly not covered by your HB

csgohan4

snowdown wrote: »

Well housing benefit obviously disagree on that count or we wouldn't be entitled to them.

Did you actually tell them?? Do you tell them about your other work?

snowdown

NYM wrote: »

Why do you want to buy that particular property ?
How 'close' is that family member? Is it a parent, sister..brother?
Would they evict you if you couldn't pay your rent?

I thought it might make more sense than a shared ownership scheme with a housing association as they seem to have a lot of negative press. As it isn't feasible to buy this property then that is the route I will have to look into. I rent from my aunt and although I am very close to her I suspect she would evict me if we didn't pay the rent as she needs the money. However that is a situation that hasn't arose and probably never will.

theartfullodger

csgohan4 wrote: »

As far as you know ??? :eek:


Here's a link you might need Here

The OP might need it too

Thanks for the pointer csgohan4: I was aware of how to report benefit fraud & wish more people reported those they know to be on the fiddle. Benefits or tax: I certainly have.

I'm 68, in receipt of state pension, £10 Xmas bonus, winter fuel allowance(**), free prescriptions, free eye tests, 'bus pass. Can you think of any reason I am not entitled to any of them??

** I get the lower amount as co-residing with my wife.

Cheers!

snowdown

csgohan4 wrote: »

Did you actually tell them?? Do you tell them about your other work?

What other work? I work full time which they are aware of and my husband is disabled and receives disability benefits. They are aware of all our income.

theartfullodger

snowdown wrote: »

.... We do pay for maintenance and repairs otherwise they wouldn't get done ....

Gosh: Family member, raking in the rent, is not bothering to comply with his repairing responsibilities? Anything else he's not bothering with? - Declaring all rent to tax man, permission to let property from lender, if any, gas safety certificate, landlord insurance??


btw most mortgages and landlord insurances exclude renting to family: So, if the place burnt down (clearly we all hope it doesn't) insurance probably wouldn't pay out: Relative & you somewhat stuffed...

Cheers!

snowdown

theartfullodger wrote: »

Fair enuf: So the house is worth less than £120k. With deposit and your ability to save why not just buy another one like it, perhaps in the same street?? Sounds like you have the income & ability to pay.

re yes, I was well aware it is possible to legitimately get HB/LHA renting from family members: So, if "not cheating them out of anything.." how come you've neglected to inform them you are renting from family? Sounds - probably, to them, suspicious, and as and when council HB dept find out they'll not be happy... Doesn't quite add up to my wee mind....If there;s nae cheating going on why not be open an honest about it, eh??

Cheers, Artful: In receipt of 6 benefits, afaik legitimately.

Yes we were stupid to not inform them in the first place and I wish I could go back and change that now. It was many years ago and I was young and I was wrongly informed that I wouldn't be able to rent the house if it was from family. Unfortunately what's done is done but I can assure you that there is no cheating going on.

The house is worth around £150k and we were looking to get a mortgage for 75k. We don't have the income to afford a mortgage on 150k and it wouldn't make financial sense as we would be missing out on the housing benefit we are entitled to claim.