Help to Buy and Disabled Family Members - Any help Clarifying Gratefully Received!

Plumfields

Good Morning Everyone,
This is my first post and after reading through as much information and previous forum posts as possible, I am still stumped!
If you read this and know of a similar question, please link me straight across - I appreciate everyone is busy.

I am saving as a first time buyer but I am very concerned about the grey area my family falls into and am looking for clarification.

I am looking to buy my first home to house myself, Mum and severely handicapped twin sister. This sounds lovely and will be, but I would need their housing benefit as a form of ‘rent’ towards my mortgage - along with my share. I’m sure you can see where I’m going with this... before I potentially put us all in a difficult position, does anyone know if this would be allowed? Or would it be classed as “renting” the property out? Mum and I are responsible for full 24 hour care but currently live separately. Buying a home seemed the simplest long term solution to care needs and security but I am very concerned that it will be misconstrued!
They need their benefits to survive but I would need their help towards the mortgage!

Any help would be gratefully received. Thank you!

EasyAs123

I think it's okay to charge family members rent as long as it's not a 'contrived tenancy'.

If your mum and sister didn't move in would you rent the rooms to lodgers and if so would you be willing to give your mum and sister the same terms/conditions as you would those lodgers (same monthly rent and same notice period to evict)?

You might also need to discuss this with your lender as there are rules around using benefits money towards affordability checks and they're not keen to have someone living permanently in the property who's not on the mortgage.

Might be better on the benefits board.

BrassicWoman

Hi,

in this position, taxpayers money would be going to buy you an asset, and as a general principle, that's rarely allowed.

There are some cases where if they were in a separate building that'd be permissible as you're then just subbing one tenant for another (still needs careful care!); but in the same home I very much doubt it most authorities would allow it.

Also you can't rely on benefits rules being the same year after year.

Check with whoever awards their benefits, but I think you need to look for a property you can afford on just your salary.

xylophone

Are you sure that you will always want to live with your mother and sister?

What would happen if you needed to sell and move on?

Mojisola

Plumfields wrote: »

I am looking to buy my first home to house myself, Mum and severely handicapped twin sister.

This sounds lovely and will be, but I would need their housing benefit as a form of ‘rent’ towards my mortgage - along with my share.

It's extremely unlikely that they would be able to claim HB to pay rent to a relative when you all live together.

Cheeky_Monkey

Personally, I think it would very much be considered a 'contrived tenancy' (because it is) and, as such, your plan will almost certainly fail.

marliepanda

It is highly unlikely you will be able to show that you would throw out your disabled twin sister if she did not pay the rent.

Whilst I see what you mean about this works for everyone, the rules will not allow this to be arranged, as said above, it is benefits paying off your mortgage for you and setting out with this in mind.

PersianCatLady

EasyAs123 wrote: »

I think it's okay to charge family members rent as long as it's not a 'contrived tenancy'.

If your mum and sister didn't move in would you rent the rooms to lodgers and if so would you be willing to give your mum and sister the same terms/conditions as you would those lodgers (same monthly rent and same notice period to evict)?

You might also need to discuss this with your lender as there are rules around using benefits money towards affordability checks and they're not keen to have someone living permanently in the property who's not on the mortgage.

Might be better on the benefits board.

You can rent to a family member but they cannot claim HB/ LHA when they live in the same property as you.

Please get some legal advice on this as some of the advice on forums like this is at best misleading and at worst complete nonsense.

marliepanda

PersianCatLady wrote: »

You can rent to a family member but they cannot claim HB/ LHA when they live in the same property as you.

Please get some legal advice on this as some of the advice on forums like this is at best misleading and at worst complete nonsense.

Bit rude to quote a post with no incorrect information and then say that...

sal_III

BrassicWoman wrote: »

in this position, taxpayers money would be going to buy you an asset, and as a general principle, that's rarely allowed.

I agree that's only fair, but what is funny, is that in many cases the HB are still paying someone's mortgage, but if it's for a family member it's a nooooo.

marliepanda

sal_III wrote: »

I agree that's only fair, but what is funny, is that in many cases the HB are still paying someone's mortgage, but if it's for a family member it's a nooooo.

Its because it is far too easy for people to take advantage of this.

There are some large extended families where Family A buys a house for the children/parents of family B and vice versa... Its not immune to people taking advantage but it helps a little.