Tenant to now Landlord - Housing Benefit Help

FunkyFish87

I have been renting privately with a friend for 5 years in the same property. We are both Joint tenants and the rent is £100 per week and we pay 50% of the rent each. My friend is disabled on benefits and I work full time.

The house has been falling into disrepair and needs a new bathroom, kitchen and the roof needs doing too. In November last year my landlord told us he was selling the property and gave us notice to leave. 

After a week, I contacted a broker who said she could get me a mortgage and I was going to move into my Parents house whilst I look for a house and my joint tenant was told he could get a studio flat with the local council for £120 a week which would be paid by housing benefit due to his disability.

I decided I wanted to purchase the property we currently live in from my Landlord and carry out the work the property needs doing too it as it is a lovely area and because it needs so much work, I am purchasing it £60,000 below the market value for the street I live in. I am going to put in a new kitchen, bathroom, get the roof fixed and get a driveway installed. I am also going to turn the attic into a dormer to make the property a three bedroomed.

Once I have done the work I was planning on getting a lodger in for £80 a week as this will help cover the payments for the additional work I am having done. My current joint tenant has asked if he can now stay in the property with me and rent the room. As he already lives here and I plan on getting a lodger anyway I see no problem with this however I want to increase the rent to £80. I plan to have all the work completed in six weeks once the house purchase has gone through.

I am a week from completion however as he is on housing benefit and the rent is being increased for him from £50 to £80 the council are saying they wont pay the housing benefit as we were joint tenants and this is not allowed. I explained to them the situation but they are not having any of it. They will not even pay the previous £50 per week rent they were paying once the house has been purchased. I cannot make sense of it. Does anyone have any help or advice they can offer? Thanks

[Deleted User]

FunkyFish87 said:

I have been renting privately with a friend for 5 years in the same property. We are both Joint tenants and the rent is £100 per week and we pay 50% of the rent each. My friend is disabled on benefits and I work full time.

The house has been falling into disrepair and needs a new bathroom, kitchen and the roof needs doing too. In November last year my landlord told us he was selling the property and gave us notice to leave. 

After a week, I contacted a broker who said she could get me a mortgage and I was going to move into my Parents house whilst I look for a house and my joint tenant was told he could get a studio flat with the local council for £120 a week which would be paid by housing benefit due to his disability.

I decided I wanted to purchase the property we currently live in from my Landlord and carry out the work the property needs doing too it as it is a lovely area and because it needs so much work, I am purchasing it £60,000 below the market value for the street I live in. I am going to put in a new kitchen, bathroom, get the roof fixed and get a driveway installed. I am also going to turn the attic into a dormer to make the property a three bedroomed.

Once I have done the work I was planning on getting a lodger in for £80 a week as this will help cover the payments for the additional work I am having done. My current joint tenant has asked if he can now stay in the property with me and rent the room. As he already lives here and I plan on getting a lodger anyway I see no problem with this however I want to increase the rent to £80. I plan to have all the work completed in six weeks once the house purchase has gone through.

I am a week from completion however as he is on housing benefit and the rent is being increased for him from £50 to £80 the council are saying they wont pay the housing benefit as we were joint tenants and this is not allowed. I explained to them the situation but they are not having any of it. They will not even pay the previous £50 per week rent they were paying once the house has been purchased. I cannot make sense of it. Does anyone have any help or advice they can offer? Thanks

Has the council elaborated on why you cannot be your friend's landlord and have housing benefit cover his rent just because you were formerly joint tenants?  Is this at least a 2-bedroom property where you will each have your own room?  I wonder if the council suspect that you are a couple rather than just friends.

tacpot12

Is your friend an ex-partner? If so, they will not be able to get housing benefit paid. 

If they are not an ex-partner, you need to get a commercial rental agreement in place that your friend can shows the council to show that they are liable to pay the rent. It would be as well for your friend to find out now what the maximum amount is that the council will pay in housing benefit, because if this is not going to be enough for you, it is better that they move out and someone who can afford to pay the higher rent moves in. They can ask for help with this at their local Citizens Advice. 

diggingdude

I would also get your friend in touch with help.  He/She may well need to present as homeless if they won't pay the rent.  You need to to formalise an official agreement the council can see and either agree/not agree to.  Sadly this would have been better a couple of weeks ago when local councillors were looking for votes