HTB with lodger on benefits

Wats19

Hi everyone

Thanks in advance for any help.

My wife and I recently bought our first home together via a HTB scheme. My sister in law and her 2 children want to move in with us essentially as a lodger. She would pay us 1/2 of our mortgage and 1/2 of all bills. This is less than she currently pays so should be sustainable.

She is a teaching assistant and a single mum. She recieves some benefits although I am not sure what exactly.

She plans to move here and hopefully work in one of the many local schools, or whereever she has to to make ends meet.

I have a few questions;
1) Will she still be able to recieve benefits etc if she lives with us?
2) I believe I can have an informal lodger even in with a HTB Mortgage. Although I am not allowed to have a tenant. I have a feeling she will need to be an official tenant in order to receive government help. Does anyone have any experience with this kind of thing?

3) How smooth is the process of transfering benefits from one county to another? (Kent to Hampshire)


Our aim is to live together for a few years to support each other. However we don't plan to mix finances.

Thanks again and best wishes

KatrinaWaves

She’s unlikely to get housing payments to pay her sister rent.

If she was able to make a claim for housing costs she would have to switch from whatever benefits she was on already to UC (unless on that already of course)

FreeBear

Wats19 wrote: »

1) Will she still be able to recieve benefits etc if she lives with us?
2) I believe I can have an informal lodger even in with a HTB Mortgage. Although I am not allowed to have a tenant. I have a feeling she will need to be an official tenant in order to receive government help. Does anyone have any experience with this kind of thing?

She will be able to receive some benefits such as child credit and unemployment benefits, but highly unlikely the DWP would pay housing benefit - You are too closely related, and it would most likely be ruled a "contrived rental". Best not to mix family and rent anyway.
With a HTB mortgage, you'd still be allowed lodgers as long as they only had a licence to occupy (i.e. an excluded occupier). Not the sort of arrangement a single mother would want, as she could find herself homeless on a whim.

gary83

Another vote for not mixing family & rentals, apart from it being considered a contrived tenancy & housing benefit is unlikely to be paid how would you feel about sharing a house with your wife, your wife’s sister & two kids in the long term? Everyone likes family visiting but it’s different when they’re living there full time. The best thing about nephews & nieces is you can be the fun uncle then they go home full of E numbers and their parents can deal with them. if you weren’t thinking about three extra people living with you when you bought the house how would you all cope in the space? Would your marriage suffer if you never got your own space? Is this how you imagined living in your first home?

Wats19

Thanks for your comments.
I have been reading about a contrived rental/tenancy and I agree that is what this sounds like.
Nevertheless I still want to see what I can do to help he situation.

The obvious way around it I think is to simply avoid the her claiming on the housing benefit system all together. or to avoid living witth us.

Which makes me wonder if perhaps I should look for a local property she could privately rent using the housing benefit assistance she already gets. She privately rents now. Essentially all we would be doing is moving her closer to us.

Presumeably transfering from one county to another is relatively simple?

[Deleted User]

Wats19 wrote: »

Thanks for your comments.
I have been reading about a contrived rental/tenancy and I agree that is what this sounds like.
Nevertheless I still want to see what I can do to help he situation.

The obvious way around it I think is to simply avoid the her claiming on the housing benefit system all together. or to avoid living witth us.

Which makes me wonder if perhaps I should look for a local property she could privately rent using the housing benefit assistance she already gets. She privately rents now. Essentially all we would be doing is moving her closer to us.

Presumeably transfering from one county to another is relatively simple?

That depends on a number of factors such as if she will have to move to UC. Finding a landlord in the area who will accept a tenant on benefits although if you can act as guarantor that might open up a few more properties. What the local housing allowance is for the type of property she wants/needs to rent and how that compare to actual rents in the area.

onwards&upwards

gary83 wrote: »

Another vote for not mixing family & rentals, apart from it being considered a contrived tenancy & housing benefit is unlikely to be paid how would you feel about sharing a house with your wife, your wife’s sister & two kids in the long term? Everyone likes family visiting but it’s different when they’re living there full time. The best thing about nephews & nieces is you can be the fun uncle then they go home full of E numbers and their parents can deal with them. if you weren’t thinking about three extra people living with you when you bought the house how would you all cope in the space? Would your marriage suffer if you never got your own space? Is this how you imagined living in your first home?

This.

Your lives WILL end up revolving around the children, their bedtimes, mealtimes, getting up times, bathtimes, pick ups and drop offs.

How much involvement will you be expected to have and how much veto/control will you have over communal space? What if the children are playing up? Will it be an issue if you have to tell them off?

HampshireH

My sister in law and her 2 children want to move in with us essentially as a lodger

You have just moved into your new home. This should be all about you.

You say your SIL wants to move in but what about what you both want?

I'm sure moving in with someone who has just bought their house is an extremely attractive option for her but what is in it for you?

For you may get half the bills paid. She has 2 kids so will be taking up more room space than you and your wife.

The shared spaces will ultimately become the kids area with their programmes on the TV. Their school work on the table. Their toys in the garden.

The ratio will be off kilter.

You could very much feel like lodgers in your own home.

Did you buy a huge house? Or did you buy with this plan already in place.

Why are you trying to solve her move. Your initial post suggests she wants to move etc but seems to have turns dont you needing to sort her relocation out.

It's a nice thought but sounds like a lot of hard work. Unless you planned this when you bought.

csgohan4

the risk is she moves in and you will be blackmailed emotionally to not kick her out and she will be there for many years no matter what you think


Don't rent to relatives unless you really will evict them


money and family shouldn't mix

https://forums.moneysavingexpert.com/discussion/5999933/evicting-a-family-member-with-no-tenancy

Skiddaw1

csgohan4 wrote: »

the risk is she moves in and you will be blackmailed emotionally to not kick her out and she will be there for many years no matter what you think


Don't rent to relatives unless you really will evict them


money and family shouldn't mix

https://forums.moneysavingexpert.com/discussion/5999933/evicting-a-family-member-with-no-tenancy

I agree. OP, I think you'd live to regret it (and so would she in all probability).


On the benefits front she'd not qualify for LHA (local housing allowance) because she'd be living with (and paying rent to) a 'close relative' (end of- don't even need to consider the contrived tenancy angle).



Probably easier all round if she looks for private rented accommodation in the area.