Housing Benefit for daughter renting basement annexe from parents ?

silverchoice

Does anyone know if my daughter would receive housing benefit if she rented a self-contained basement annexe in our house? She currently receives housing benefit for renting another property.

The basement has its own address, entrance and council tax band and we've been renting it to tenants for the last two years. Obviously we would charge her the same rent and give her a contract.

Housing_Benefit_Officer

Has your daughter ever lived in the house you currently occupy before the basement was converted?

When you had the basement converted to an annexe was there any planning restrictions on its use. i.e. not to be rented out and only occupied by an elderly parent?

Does the annexe have separate gas, electricity, water bills or do you share a supply?

How do you access the basement is it via your property or a separate entrance?

silverchoice

Moved into house 5 years ago. Me, wife and daughter upstairs and my mum and dad in self-contained basement which has its own front door.

Three years ago parents moved out so contacted council about renting out the basement. They said we needed to make some alterations so they would classify the basement as a dwelling. We had to block up the internal stairs from the main house and fireproof the basement ceiling. I also arranged for the basement to have its own water, gas and electricity meters and register it as an official address.

Housing_Benefit_Officer

silverchoice wrote: »

Moved into house 5 years ago. Me, wife and daughter upstairs and my mum and dad in self-contained basement which has its own front door.

Three years ago parents moved out so contacted council about renting out the basement. They said we needed to make some alterations so they would classify the basement as a dwelling. We had to block up the internal stairs from the main house and fireproof the basement ceiling. I also arranged for the basement to have its own water, gas and electricity meters and register it as an official address.

Did the planning department give you this advice or the housing benefit department/council tax?

When the annexe was built was there any planning restrictions?

silverchoice

Planning department from the Council gave us the advice and when we bought the house they were careful not to call it an annexe and I don't think there were any planning restrictions.

Housing_Benefit_Officer

If your daughter was homeless would you give her a room in your home or the use of the basement without paying rent or would you let her doss on the streets?

If your daughter moved into the annexe and housing benefit was refused would you get a court order and get the bailiffs to evict her and throw her on the streets?

silverchoice

One thing I haven't mentioned is that my daughter is 26 weeks pregnant.

silverchoice

Housing_Benefit_Officer wrote: »

If your daughter was homeless would you give her a room in your home or the use of the basement without paying rent or would you let her doss on the streets?

If your daughter moved into the annexe and housing benefit was refused would you get a court order and get the bailiffs to evict her and throw her on the streets?

If my daughter was homeless I would let her stay with us in the main house.

With regards to the second question I am wanting to avoid this hence why I am asking the question.

bigbulldog

If it was my daughter I would let her stay there free or for a nominal amount as long as the finances allowed it.

Housing_Benefit_Officer

silverchoice wrote: »

If my daughter was homeless I would let her stay with us in the main house.

With regards to the second question I am wanting to avoid this hence why I am asking the question.

You will need to write a letter to the local Housing Benefit Department in advance of your 26 week pregnant daughter moving in.

You will need to explain the following:-

1) You converted your basement into a separate annexe for your elderly parents.

2) For the past few years you have been renting it out to commercial tenants.

3) You would now like to rent it out to your daughter who is 26 weeks pregnant.

4) If housing benefit isn't paid she will be forced to live rent free in the main home with you.

5) You wouldn't evict her as she is your daughter but she wouldn't be allowed to live in the annexe as this is a source of income for you and you would rent it out to a commercial tenant instead.

6) Ask for a decision on whether the tenancy would be considered non commercial or contrived.

The local Housing Benefit Department would give you an advance notification on whether Housing Benefit wold be paid or not. You would then be able to make a decision on renting to her without the risk of no Housing Benefit being paid.

FBaby

You really need to think of the consequences. For instance, what would happen if your DD decide to move her boyfriend in the annex, then 12 months later, it all goes wrong, she wants him to move but he doesn't so she decides to move with her new boyfriend. The old boyfriend refuses to pay and refuses to go. You get no money and the stress of having to go to court whilst your daughter is very sorry for your situation, but can't do anything.

I trust my kids completely, but I don't trust the situations they could find themselves in, so on this basis, I would never rent to them, HB or not.