Inheritance affecting ESA?

NaomiR

poppy12345 said:

Were housing benefit aware that they were renting from a family member?

Yes HB was applied for the correct way ie lease was submitted etc 

poppy12345

This just feels so wrong. Currently living in a property owned by a family member and you're claiming HB for help with the rent, yet you will now inherit this same property. Surely this can't be right?

Jyana

NaomiR said:

Renting from a close relative is permissible provided relative doesn’t live in the same property, rent is due as per lease agreement which is submitted to DWP to apply for Housing Benefit.  Rent covers current mortgage which would be paid up on death of owner so current HB claim is indeed valid and going directly to landlord/relative with shortfall (HB does not cover full rental amount)

The bit in bold is possibly what concerns me the most in this post. But as others are saying, be prepared to face some questions about this. 

Spoonie_Turtle

If HB are satisfied the tenancy agreement is legit, then it seems there's no problem.

https://england.shelter.org.uk/professional_resources/legal/benefits/housing_benefit/housing_benefit_claimants_who_are_treated_as_not_liable_to_pay_rent#title-1

NaomiR

It’s a complicated situation which is why I’m trying to help.  These are good honest people who are (ultimately) trying to do the right thing following traumatic life changing events.

Thank you all for your help I think the best way forward is to obtain legal advice 

NaomiR

Jyana said:

NaomiR said:

Renting from a close relative is permissible provided relative doesn’t live in the same property, rent is due as per lease agreement which is submitted to DWP to apply for Housing Benefit.  Rent covers current mortgage which would be paid up on death of owner so current HB claim is indeed valid and going directly to landlord/relative with shortfall (HB does not cover full rental amount)

The bit in bold is possibly what concerns me the most in this post. But as others are saying, be prepared to face some questions about this. 

My point was a response to someone else who queried legitimacy of rental agreement; rent is due as there is a current mortgage.  Rent paid is more than HB so the shortfall is met.  DWP verified HB upon tenancy there is nothing undergoing on here I can assure you 

poppy12345

DWP will not have verified HB because it's not administered by them. HB is claimed from your local Authority. It will only be DWP if they are claiming Universal Credit and this is case help with the rent is known as housing element. 

NaomiR

Sorry I was thinking about the ESA (DWP)

huckster

Well if the Council were provided with all of the correct information then I don't see any issue with HB.  Perhaps they decided to accept tenancy was genuine commercial arrangement.