Renting a property to daughter and sharer

Guest101

PersianCatLady wrote: »

My partner and I currently have around 95k in a savings account
There won't be a mortgage involved
I am confused by these two statements and I just want to clarify that they are correct.


Are you actually going to be able to purchase a whole property without a mortgage for £95,000?


I only ask because where I live there is no chance at all of managing to do so but I do understand that in other areas of the country there are cheaper properties but I didn't know that there was much left for that price.

Some areas of the Northwest (and north in general) that's enough for a very decent 2 or even 3 bed.

PersianCatLady

It's incredibly rare, especially when it's a parent and child relationship.
I don't know about where you live but here it is actually quite common.


There are no council properties available any more, private rented is so hard to acquire and the rents are extortionate but there are an awful lot of older people with savings and a lot of equity in their own homes who can afford to buy a property to rent to their children.


As long as the parties can show that the tenancy has been set up just to claim the LHA (for example by only charging rent when the tenant is on benefits) then the LHA is granted and paid.

PersianCatLady

Some areas of the Northwest (and north in general) that's enough for a very decent 2 or even 3 bed.
That is amazing that you can actually get so much for your money and I also think that the wage gap is falling as well.

Guest101

PersianCatLady wrote: »

It's incredibly rare, especially when it's a parent and child relationship.
I don't know about where you live but here it is actually quite common. - Which council? Just so I can check their policy?


There are no council properties available any more, private rented is so hard to acquire - Is it? Blimey, for my own clarification, can I have the first part of the post code, or nearest town/city, just so I can do a quick rightmove search? and the rents are extortionate but there are an awful lot of older people with savings and a lot of equity in their own homes who can afford to buy a property to rent to their children. - That's great, but why would the tax payer fund this?


As long as the parties can show that the tenancy has been set up just to claim the LHA (for example by only charging rent when the tenant is on benefits) then the LHA is granted and paid.

Just want to do some checking

Guest101

PersianCatLady wrote: »

Some areas of the Northwest (and north in general) that's enough for a very decent 2 or even 3 bed.
That is amazing that you can actually get so much for your money and I also think that the wage gap is falling as well.

When I say 'some' areas, I don't mean 'nice' areas

PersianCatLady

Guest101
I hope that I haven't offended you in some way because you seem a little bit miffed at what I have written but I didn't mean to offend you in any way rather just explain what the situation is.


Here is the information that you wanted to know.

Which council? Just so I can check their policy?
Bournemouth Borough Council


Can I have the first part of the post code, or nearest town/city, just so I can do a quick rightmove search
Of course, BH6. There are a lot of properties available but most of them are well over the LHA levels which have been set for this area and a lot of them won't accept people on benefits.


That's great, but why would the tax payer fund this?
I can see your point but if someone is on benefits they are entitled to LHA regardless of who it is paid to and it is a lot cheaper than putting them up in B & B style accommodation.

Guest101

PersianCatLady wrote: »

Guest101
I hope that I haven't offended you in some way because you seem a little bit miffed at what I have written but I didn't mean to offend you in any way rather just explain what the situation is. - No no, not at all, apologies if it came across that way, genuinely interested in finding out more


Here is the information that you wanted to know.

Which council? Just so I can check their policy?
Bournemouth Borough Council - Thanks, ill take a look.


Can I have the first part of the post code, or nearest town/city, just so I can do a quick rightmove search
Of course, BH6. There are a lot of properties available but most of them are well over the LHA levels which have been set for this area and a lot of them won't accept people on benefits. - Thanks, ill take a look.


That's great, but why would the tax payer fund this?
I can see your point but if someone is on benefits they are entitled to LHA regardless of who it is paid to and it is a lot cheaper than putting them up in B & B style accommodation.

That's true, but (especially in this case) there is no mortgage to pay, the LLs aren't losing anything, just not gaining. It would appear to be a way of just taking money from the general taxpayer

PersianCatLady

I see what you mean but then take a situation where parents buy a flat to rent out.


They can either rent it out to their child or a random stranger, why should one be able to claim LHA and not the other?


But it is so hard to find accommodation round here especially for people at the lower end of the income spectrum.

Guest101

PersianCatLady wrote: »

I see what you mean but then take a situation where parents buy a flat to rent out.


They can either rent it out to their child or a random stranger, why should one be able to claim LHA and not the other?


But it is so hard to find accommodation round here especially for people at the lower end of the income spectrum.

Well because if they fail to pay the rent the parents would evict the stranger, but not the child. So the housing 'needs' are not the same (in my opinion anyway)


I agree in some areas (I've had a quick look, and even accepting HB it's in the region of £700). It's unpalatable, but perhaps people need to be more willing to move for work and lifestyle.


(I'm an immigrant, as were my parents - so I understand it can be difficult leaving family ties)

dimbo61

Parts of Manchester and many towns nearby have properties for sale at £100K or less.