Over 70 help - housing benefit

chattymaywill

Hello I currently have housing benefit. I live a long away from my family. 

My daughter has pension and wants to buy a property she has seen an over 60s one but the tennant has to own a % 
I’ve seen that family can rent to you to get housing benefit. But how will the 1% affect this? The flat is cheaper because of this clause. But it’s all we can afford 
If I pay rent on the 99% can  I still claim housing benefit? 

Any advice? (Note my current property has been with the housing association) 
thanks 

KxMx

https://england.shelter.org.uk/professional_resources/legal/benefits/housing_benefit/housing_benefit_claimants_who_are_treated_as_not_liable_to_pay_rent#payments-to-close-relatives

Please see Non Commercial Arrangements and Contrived Arrangements

Newcad

While we all understand the attraction of moving nearer to family you need to be careful here.

As well as the 'contrived tenancy' aspect you should also look VERY carefully at just how much Housing Benefit would be paid if you moved.

I'm assuming that your current housing association place is a Social Rental so HB pays the full rent.

If you move and rent from family then at best HB will only pay the applicable LHA rate (a form of rent cap) for the area you move to because it will be a private rental and not a social rental.

So even though the rent may be lower at the new place HB may not pay all of it and you will need to top-up the rent yourself.

And if your daughter doesn't make you top up to the market rent then that says 'contrived tenancy' to the council.

sheramber

Would your daughter be allowed to rent out the property?
 Some share ownership arrangements do not allow it.

Newcad

Another consideration is whether she could afford the property without any HB from you. If not that would also be seen as contrived.

Sorry that our comments seem negative.

We are just pointing out that there is a lot to consider, and we wouldn't want you to make a mistake that sounds attractive at first but that could leave you worse off financially.

Of course you may decide it would be worth it to be nearer to family, but you and your daughter should both go into it with your eyes open.

Enjoy your Christmas and then consider things carefully in the new year.

M25

You need to secure your own housing future and not get entangled in other people's schemes. I can see so many potential problems with the crazy plan especially if you have limited funds. You can be homeless at any age being in your 70s will offer little protection if things go wrong.

Why can't you do a flat swap with another housing association or council tenant nearer your relatives?

Mixing your home's security (this is all you have) with other people who've been on Google searching is not sensible. 

If it were me and a relative suggested this plan I'd move further away from them.

[Deleted User]

M25 said:

You need to secure your own housing future and not get entangled in other people's schemes. I can see so many potential problems with the crazy plan especially if you have limited funds. You can be homeless at any age being in your 70s will offer little protection if things go wrong.

Why can't you do a flat swap with another housing association or council tenant nearer your relatives?

Mixing your home's security (this is all you have) with other people who've been on Google searching is not sensible. 

If it were me and a relative suggested this plan I'd move further away from them.

I am sorry but your last sentence is rather sad and unhelpful. It says more about you than the OP. The OP wishes to love closer to her family. Maybe in this case the need and want is genuine by a loving family. Yes there may be obstacles, but there will be ways to overcome them. In some ways MSE forums can be maddening !!!. Some posters are so cynical and only ever think of the money! 

Newcad

[Deleted User] said:

...  MSE forums can be maddening !!!. Some posters are so cynical and only ever think of the money! 

Income has to be an important consideration in a persons welfare.

It's also what Money Saving Expert forum is about, and this benefits section is about income (money) from benefits.

If the OP ends up losing their Housing Benefit, either in part or altogether, because of an ill-considered move then that is not going to be good for their welfare.

The suggestion from @M25 about the posibillity of a house/flat swap would be a better option for the OP to move closer to family.

Much better than what appears* to be an attempt by the OP's daughter to purchase a 'shared ownership' property, a purchase partly financed by the OP's Housing Benefit - Housing Benefit that probably would not be paid anyway because of the way it is being proposed.

*I'm sure that probably isn't what the daugter intends, but in the end that is how the council would see it - Because in the end that is what appears to be being proposed here.

[Deleted User]

I wasn't being critical of all of the @M25 post. It was the final comment that I thought was not really relevant to the initial question.

M25

I said what I said with a bit of humour I thought that would be obvious. Ho hum.

And my concern isn't that the OP would lose the right to 100% housing benefit, the concern would be they'd lose their place to live for some potentially harebrained scheme.