Housing Benefit for daughter renting basement annexe from parents ?

Housing_Benefit_Officer

1) If Housing Benefit isn't paid would you pursue her for unpaid rent or would she pay what she could?

2) How long would the tenancy be for? Would she have a tenancy agreement or be able to live in the property for as long as she wants?

3) Has she ever lived in or used any part of the basement in the past?

teddysmum

FBaby wrote: »

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.

The refusal to move situation could happen with any tenant the OP took and their daughter could be faced with having to leave her home no matter where she rented.


I think most would prefer someone they could trust to look after the property as a tenant, but then, next to the known elements who will try to wriggle out of paying, family and friends can be the most difficult, to get payment from, as they expect you to give them leeway. This can lead to bad feeling and the eviction dilemma ; the latter being what concerns benefits agencies.

silverchoice

Housing_Benefit_Officer wrote: »

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.

Thanks for that.
The only part that's wrong is number 1 because the house had a self-contained basement when we bought it.

What chance is there they would agree that HB would be paid ?

batg

If your daughter was not able to get housing benefit, would you still let her have the basement to live in?

FBaby

The refusal to move situation could happen with any tenant the OP took and their daughter could be faced with having to leave her home no matter where she rented.

Of course it would, but that's when having a family member you care for and want the best for in the middle gets things much more difficult, especially if say the person refusing to leave the flat was the father of the grand child.

rockingbilly

bigbulldog wrote: »

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

Which is what the post is about.
Daughter will not have to pay any rent Housing Benefit would cover it.

rockingbilly

FBaby wrote: »

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.

Have you never been a guarantor for the rent payable by your child who was privately renting say a flat then?

bigbulldog

rockingbilly wrote: »

Which is what the post is about.
Daughter will not have to pay any rent Housing Benefit would cover it.

Sorry,perhaps I did not make my post clear.?

If I had a self contained basement I would not let her claim HB either as long as the finances allowed it as I said in my original post.

nannytone_2

rockingbilly wrote: »

Have you never been a guarantor for the rent payable by your child who was privately renting say a flat then?

i wouldn't ne a guarantor for anyone, even my kids!

the only way anyone should even consider doing it is if they can afford to pay the second rent comfortably on top of their own living expenses.....
and i bet theres not many that could afford to rent a swecond property

teddysmum

nannytone wrote: »

i wouldn't ne a guarantor for anyone, even my kids!

the only way anyone should even consider doing it is if they can afford to pay the second rent comfortably on top of their own living expenses.....
and i bet theres not many that could afford to rent a swecond property

Yes, needing a guarantor suggests that there is risk and anyone able to take the risk of putting their own home on the line, as the guarantee, would probably be able to make a straightforward loan, instead.