Renting as power of attorney.

PersianCatLady

Poet100 wrote: »

The property is mortgage free, being teenagers is irrelevant (one is early 20s) and renting to family or strangers is also irrelevant, I would say there is more stability in renting to trusted family members, who we know, will not fail on keeping up payments and will look after the property, trusted so much that we would waiver the deposit.

The fact that you are willing to waive the deposit MIGHT make some people view this as a non-commercial tenancy.


This MAY cause problems if you need to evict the tenants later on or if any of them need to apply for HB / LHA at any time.


Now I know that you are going to say that these family members are wonderful and you will never need to evict them. However everybody that rents to family members says the same thing at the beginning and it is only further down the line that things change.

PersianCatLady

Poet100 wrote: »

There are provisions in place, besides why would they be unable to claim benefits?, they would after all be in the same position as anyone else, and entitled, although I do agree, under this god forsaken government, they would struggle to find social responsibility from an ideology based on making poor people pay for a collapsed economy caused by greed. We are confident that these highly educated people will be finding employment (one already has a part time job). Even if that happened, it would have been our fathers wish to look out for his grandchildren, whatever.
This is not the typical greedy landlord situation we are talking about here, this is a possible solution to helping two sets of people, the intention is not to capitalise on the needs of people who need housing because of lack of social housing investment, it is to provide them with somewhere to live whilst also addressing another problem caused by greed and almost non existing government social responsibility.

It is possible to have HB / LHA paid if you rent from a relative but there are very strict rules about it and I think you need to do some more research before simply saying "they would after all be in the same position as anyone else".


As I mentioned above the fact that you are not taking a deposit from the tenants may cause the council to regard this as a contrived tenancy and refuse to pay HB / LHA if a claim is made.


https://england.shelter.org.uk/housing_advice/housing_benefit/housing_benefit_renting_from_family

PersianCatLady

p00hsticks wrote: »

Generally, Housing Benefit is not usually available for those living in property owned by relatives ( it would be far too open to abuse). No reason why the couldn't claim other benefits such as Jobseekers Allowance.

That is nonsense, HB / LHA can and is paid to people who rent from family but there are specific rules that have to be met.


https://england.shelter.org.uk/housing_advice/housing_benefit/housing_benefit_renting_from_family

sleepless_saver

Most students are not entitled to housing benefit so it would be wise to check that out too.
http://england.shelter.org.uk/housing_advice/housing_benefit/can_students_claim_housing_benefit

Cakeguts

Poet100 wrote: »

Wrong, we have taken legal advice now, There is no problem with us renting our fathers property out as attorneys or to family members at all. Apparently it is common practice and a sensible approach to a National disgrace.
Just to reiterate Hoploz, the question really is about the tax returns.

If you can afford to take legal advice about renting a property why can't you afford to get financial advice?

AnotherJoe

Poet100 wrote: »

Wrong, we have taken legal advice now, There is no problem with us renting our fathers property out as attorneys or to family members at all. Apparently it is common practice and a sensible approach to a National disgrace.
Just to reiterate Hoploz, the question really is about the tax returns.

Then it's clear that the answer is, you do everything as your father.

Pretty obvious really otherwise his income would be added to your tax, youd be liable for SDLT and CGT when it was sold, etc. As someone else posted, this is your father entering his tax returns, doing his bank accounts, getting home insurance, , its just that you are authorised to sign papers, enter data on form s on his behalf. But it's all his, none of this interacts with your financial affairs at all.

Cakeguts

What happens when someone dies and the executors find that there is money missing from the estate? I don't know the answer to this but I was thinking along the lines of rented houses and tenants not paying rent but being allowed to live there for free. Would the person with power of attorney be expected to make up the loss if the money had just disappeared? Could they be taken to court by the beneficiaries?

davidmcn

Cakeguts wrote: »

What happens when someone dies and the executors find that there is money missing from the estate? I don't know the answer to this but I was thinking along the lines of rented houses and tenants not paying rent but being allowed to live there for free. Would the person with power of attorney be expected to make up the loss if the money had just disappeared? Could they be taken to court by the beneficiaries?

Potentially, if they had been negligent in their duties.

getmore4less

Poet100 wrote: »

The crisis in social care – looking after elderly, disabled and young people – is a national scandal. .

If they need looking after by the state then the state should confiscate their assets and use those first not the rest of us.

The I want the state to look after my parents and my kids so I can have my parents spare house is a very selfish attitude.

Poet100

(Text removed by MSE Forum Team)

The fact that my father pays council tax, and the fact that it is to rise by upto 8 % in England and Wales under this governments plans to back pedal in its attempts to fund social care, for people who have worked all their lives, paying into the tax system & those who like my father who fought in WW11, means he will be paying twice, effectively being robbed by government. It is not selfish at all, not to mention that his would be beneficiaries will also be paying the increased council tax and are also being robbed.