Urgent advice needed!!

tdando

Hi

I am not sure if I am posting this in the correct thread so apologies if not. It's an urgent one though and I could do with some advice tonight.

I bought a house for my grandparents as they were too elderly to get a mortgage in their own names. The basis was that I own the legal title but the beneficial interest always belonged to them. They always paid an amount to cover the mortgage and insurances and paid a bit extra as a thank you to help me with childcare costs. They paid all of the conveyancing costs and deposits, I haven't paid a penny. They have also spent a fortune on repairs over the years

My grandad always took care of the finances but he unforunately passed away last year. It has just been said that he was claiming housing benefit to cover the mortgage repayments and that it would be fraudulent if he was. My grandmother certainly isn't claiming it now. They have been reliant on pensions and benefits for as long as I can remember due to disability.

I honestly don't know if he was or not but could somebody shed some light on whether this would be considered fraudulent or not? What would the consequences be now that he has passed away? If he did I am sure it was done innocently rather than maliciously.

Thanks

AdrianC

The overpayments could be reclaimed from his estate, if it's not yet been settled. If it has been, as it probably has, then I don't think there's anything that can be done.

Are you complying with all your legal responsibilities as a landlord, including declaring your profit for tax...?

Hasbeen

tdando wrote: »

Hi

I am not sure if I am posting this in the correct thread so apologies if not. It's an urgent one though and I could do with some advice tonight.

I bought a house for my grandparents as they were too elderly to get a mortgage in their own names. The basis was that I own the legal title but the beneficial interest always belonged to them. They always paid an amount to cover the mortgage and insurances and paid a bit extra as a thank you to help me with childcare costs. They paid all of the conveyancing costs and deposits, I haven't paid a penny. They have also spent a fortune on repairs over the years

My grandad always took care of the finances but he unforunately passed away last year. It has just been said that he was claiming housing benefit to cover the mortgage repayments and that it would be fraudulent if he was. My grandmother certainly isn't claiming it now. They have been reliant on pensions and benefits for as long as I can remember due to disability.

I honestly don't know if he was or not but could somebody shed some light on whether this would be considered fraudulent or not? What would the consequences be now that he has passed away? If he did I am sure it was done innocently rather than maliciously.

Thanks

Perhaps at the moment you should looking after yourself? and looking at your responsibilities as a being a landlord? re legal and tax implications etc?

tdando

I don't consider myself to be a "landlord" as it has always been my grandparents home in all but legal title. I do declare the additional money each year on my tax return but not as rental income, just additional income.

All of the correct insurances are in place, smoke and carbon monoxide detectors, boiler serviced etc etc but thats all done by my grandmother as a responsible home owner. I don't get involved.

There was no money in my grandads estate and that's all finalised now as he had nothing to give to anybody. Just a bit in his bank that went to my grandmother.

G_M

If probate has been granted and the estate wound up, it is probobly too late for any creditors to come forward.

However, it is always wise for an executer to place an advertisement in the local paper giving creditors notice of the estate and inviting claims against it.

I believe if this was not done a creditor can claim against the executer.

But I can't see the council doing this.

There is of course more of a risk if your grandmother was also claiming housing benefit. If she was was not paying rent (and you have argued persuasively that you ar not a landlord so she can't have been) but was claiming Housing Benefit (at one time) then she may be accused of Benefit fraud I guess.

You might do better posting on the benefits forum here though.

[Deleted User]

Who has said that he was claiming housing benefit? Who is the executor of his estate. Any mention on bank accounts?

As already said, probably too late for anything to be done now.

However, one would assume (depending on the level of payments you were receiving) that the money was coming from somewhere????? Did you never ask how they could repay all this money (mortgage payments, money for renovations etc) when you took out the mortgage?

getmore4less

tdando wrote: »

I bought a house for my grandparents as they were too elderly to get a mortgage in their own names. The basis was that I own the legal title but the beneficial interest always belonged to them.

How was that done?
Did you get legal and tax advice at the time

One standard way would be an interest in possession trust but not sure if you would have got a mortgage if that had been done.


You really need to unravel more than just a potential benefit issues as the true ownership will impact CGT and IHT assessments

marksoton

tdando wrote: »

I don't consider myself to be a "landlord" as it has always been my grandparents home in all but legal title. I do declare the additional money each year on my tax return but not as rental income, just additional income.

You may not, but assuming you have a residential mortgage your lender certainly will. And if that's the case it's mortgage fraud.

AdrianC

tdando wrote: »

I don't consider myself to be a "landlord"

You may not, but the law certainly does.

There was no money in my grandads estate and that's all finalised now as he had nothing to give to anybody. Just a bit in his bank that went to my grandmother.

"There was no money except for some money"

Grenage

tdando wrote: »

My grandad always took care of the finances but he unforunately passed away last year. It has just been said that he was claiming housing benefit to cover the mortgage repayments and that it would be fraudulent if he was.

If he was claiming housing benefits, it wasn't for paying a mortgage, it was for paying rent. If the mortgage is residential, then the fraud would be on your part (as has already been said).

Regardless of your intent, it's a bit of a mess.