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

Mattygroves2

xylophone wrote: »

Perhaps auntie would agree to be your mortgagee....

She sells you the house against a charge and loan on the property ... of course you would not be able to claim housing benefit.

OP this could work if you can get the right mortgage provider who is prepared to have a second charge on the property with a minimum of equity for security.

You get a mortgage for 50% and your Aunt transfers the property over to you but secures the other 50% as a charge on the property. She can then charge you interest on the amount that you owe her (the other 50%) which she would have to declare as income and pay tax on. The interest amount would be set out in the legal charge and would be down to whatever you and your Aunt agree - could be a fixed % or one that floats with the base rate.

You'd own the house and be responsible for all maintenance and insurance costs - so if the boiler breaks you'd have to find the cash to sort it out.

You wouldn't be able to claim housing benefit but it might mean you can get a mortgage for 50% of the total value. In the future as you can afford it you could negotiate with your Aunt to buy more of the 50%. I think this is about as close to shared ownership as you are going to get with a private individual.

snowdown

I am not going to apologise for claiming what I am entitled to. I find it hard to believe so many of you think if someone is eligible for housing benefit then they shouldn't claim it.

More fool you if that's the case and you shouldn't be on a moneysaving website.

I'm going to leave this thread now as I can't be bothered with this anymore.

marksoton

snowdown wrote: »

I'm going to leave this thread now as I can't be bothered with this anymore.

Bye.... :wave:

NYM

snowdown wrote: »

I am not going to apologise for claiming what I am entitled to. I find it hard to believe so many of you think if someone is eligible for housing benefit then they shouldn't claim it.

More fool you if that's the case and you shouldn't be on a moneysaving website.

I'm going to leave this thread now as I can't be bothered with this anymore.

No one has said you're not entitled to claim HB if you were claiming from a legitimate LL. The problem here is that the tenancy is clearly not on a legitimate footing.

You knew that when you first claimed HB. You wrote in your first post on this thread that you thought it wouldn't be allowed, so you didn't tell them.

That's the problem....

HappyMJ

snowdown wrote: »

I am not going to apologise for claiming what I am entitled to. I find it hard to believe so many of you think if someone is eligible for housing benefit then they shouldn't claim it.

More fool you if that's the case and you shouldn't be on a moneysaving website.

I'm going to leave this thread now as I can't be bothered with this anymore.

I don't understand why you don't move out into another property and pay more rent. Housing benefit will as you say cover the increased rent and you would save money by not paying for repairs and maintenance. Your aunt can then let this property out at a higher rate and make much more money. She can then save that extra money she gets for it in her name and when you decide to buy a property she might decide to gift you the money to help you with your deposit.

It's just the way you've presented this as a deal between yourself and your aunt that really implies that this isn't as commercial as you say it is.

Whatever you do get your aunt to get a gas safety certificate ASAP. She can be prosecuted and even imprisoned especially if you are all one day found dead in the house because of carbon monoxide poisoning due to the failure of the landlord to carry out the check. She cannot defend herself by saying it was your fault for failing to get a gas safe registered engineer to repair the boiler properly when it broke down and you saved money by getting your mate to fix it for a tenner instead.

theartfullodger

snowdown wrote: »

I am not going to apologise for claiming what I am entitled to. I find it hard to believe so many of you think if someone is eligible for housing benefit then they shouldn't claim it.

More fool you if that's the case and you shouldn't be on a moneysaving website.

I'm going to leave this thread now as I can't be bothered with this anymore.

Translation: "Oh b*gg*r I've just realised what a mess I'm in. Well, pulls-frumpy-face, I'm not going to admit I'm wrong, I'll run away and pretend (nay, pray!) I never asked in the first place...: Hell, hope the HB people never find out and demand their money back & aunty doesn't evict us....Where's the gin..."

£25 donation to an agreed housing charity if Snowdown tells us who she is & where she lives..
https://en.wikipedia.org/wiki/Snowdown
??

Nothing to hide, nothing to be embarrassed about, why not let everyone know eh??

PS System tells me she was still viewing this thread... 18:59 Friday..

csgohan4

I got enough popcorn from this thread, time to move onto another RTB/ HB thread

FBaby

I am not going to apologise for claiming what I am entitled to. I find it hard to believe so many of you think if someone is eligible for housing benefit then they shouldn't claim it.

But you don't know that you are entitled to it, that's the issue. You admit yourself that you initially made the decision not to declare your landlord was your aunt because you believed that would mean you were entitled to HB. You've now read that it is possible so think you are ok, however, you are choosing to only read what suits you and ignore what you've been told, ie. that it is likely the circumstances of your tenancy means that it would be considered as contrived and therefore you would NOT be entitled to get HB for this property.

Not one poster has made a statement that they didn't think you were entitled to HB, the comments are about questioning whether you would be entitled to HB for THIS particular property at that agreed rental price
It's very different.

Lioness_Twinkletoes

snowdown wrote: »

I'm going to leave this thread now as I can't be bothered with this anymore.

*Rough translation* I'm going to leave this thread now because:

a) No one will tell me what I want to hear

b) I'm scared because I've realised that I have been potentially claiming HB fraudulently and my relative has been defrauding the tax payer and someone might find out

Red_Spider

Poppie68 wrote: »

You really need to look up and understand contrived tenancys. Paying lower than market rate is a sure way of seeing you and your family member being investigated.

I think the council would have investigated before now, if they were going to bother...