Would elderly parent get housing benefit if living with us?

[Deleted User]

TELLIT01 wrote: »

The OP was simply asking if what they were looking to do would enable their parents to claim HB, so the simple answer is 'No'. I'd never heard of 'contrived tenancy' and I don't suppose the OP had either. Explaining why they couldn't do what they were looking to do is one thing, but effectively accusing them of intending to defraud either the local council or the tax man is another.
One of the first questions I asked on this site was attempting to see if there was any legitimate way of protecting my disabled brother's inheritance, as his income and savings combined was literally pennies over the limit for Pension Credits. You would have thought, from some of the responses, that I was trying to cheat the tax man out of millions. Why can't people simply provide factual answers to questions instead of trying to judge and best-guess the intention behind those questions?

i'm surprised you have never heard of a contrived tenancy, its been brought up on here endless times

tomtom256

tomtom256 wrote: »

In you're own words you stated "Obviously I would not them to pay if they can't, but it may then make our mortgage unaffordable" "and the plan is that they would move in with us and pay us the £650 to pay towards the mortgage."

This is not a normal rental liability and you are looking at them claiming HB in order to help with the mortgage, there is no other way to comprehend the words you wrote! Which in legal terms is a contrived tenancy.

You can sugar coat it how you like, but it's the wording you used.

The above is a factual answer based on the wording used, because in theory if it was an official annex/separate to the main house and the tenancy would be legally enforced and they would be evicted if they didn't pay rent, then HB could be payable.

However as worded in the first post, HB would not be payable based on the two points quoted as they infer that they want the HB to make the mortgage affordable.

As to accusing them, based on the wording used, they do appear to want to defraud the local council, but wanted clarification first.

In essence there is either a liability to pay rent which will be enforced as per a tenancy agreement or there isn't.

Cheeky_Monkey

I think you have already been advised that you would not qualify for the Rent a Room Scheme if your parents were living in the annex rather than in the house with you.

Jenniefour

The best interests of your parents might be better served by staying put, at least the parent who survives the other will know that their rent will still be taken care of by HB.

And potential rent will not be taken into account by a mortgage lender in any event on a residential mortgage. Whether it's rent a room or tenancy of an annexe.

Not always the best idea to try and meet two different sets of needs with a solution that involves money and property between families. There can be unforeseen big downsides, that seriously impact on one or both parties, not to mention the upset that might be caused. For example, what would happen if you and your husband ever got divorced.

PersianCatLady

A family member cannot claim LHA / HB if they are living in your home.

bspm

No idea if OP explained wrongly re parents and renting but here is the definition for what some are calling a 'contrived tenancy'

A contrived tenancy is a term used in British housing law to describe a situation where a tenancy is created in order to take advantage of the housing benefit system. Contrived tenancies can occur where a family member 'rents' to a family member but on a non-commercial basis.

Night night folks, think drugs are finally kicking in.

FBaby

I can't believe I want to help OP, but here we go!

From reading many posts here, it would appear that what you are suggesting doing isn't impossible, however, you would need to evidence that your arrangement is commercial.

Your best chance to do this is to actually evidence that it was before you consider to rent to your parents, ie. rent the place to strangers, via a proper ast arrangement for a few years, and THEN, get your parents to move in and claim under the same arrangement. You might want to go through a couple of tenants first and contact HB to ask if it would be ok to rent to your parents at this point. You might also need to factor delays and potential lack of rental income when you evict the tenants to move your parents in.

FBaby

Ignore my above post, just read your post in the other forum

We have no intention of turning it into a separate residential house to eventually sell off or rent to someone we don't know.

That won't work then! Looks like it will have to be working bro then or airbnb (with all the inconvenience that comes with it).

Mojisola

californiagirl wrote: »

In terms of affordability, we can afford the mortgage, but if one of them dies and the other loses that income, the burden will then fall on myself and my husband to provide a roof over their heads, as well as providing care, food etc.

Why would you have to pay all the bills, including food?

The survivor will still get a pension and, if care is needed, Attendance Allowance.

He/she would also be entitled to carers through the council.

californiagirl

venison wrote: »

Don't try and be sarcastic you can't do it
I do not, have never, and never will believe everyone is a scrounger, I can however spot a chancer a mile away.
Do we assume that you hang around looking for ways to milk the system? The jury is out on that one.

You're rubbish at spotting a chancer if you think I'm one.