Scotland, ADP, LCWRA, and Rent question

Clueless589

Son is in receipt of ADP (high living, low mobility) and LCWRA, currently still living at home. Son wishes to move out to live with partner and her daughter, which we wholeheartedly support, and have been working towards.

We have a couple of previous homes available, a three bedroomed house which is rented out and still has a mortgage, and a two bed flat which is an ex parental home. The house was previously a home to myself husband and son before we moved due to husbands work.

Son would prefer to return to the mortgaged home being a bigger house with large garden, garage shed etc, but we currently have tenants in situ. However, we know tenants are looking to move on (bigger family than when they moved in) so are not willing to push them out. So, we would like to offer son the ex parental flat until the mortgaged one comes available.

We could offer son the ex parental flat rent free as no mortgage, and we want to help them, however when they move to the mortgaged house they would need to pay rent as we cannot afford to pay two mortgages. Son should be able to get help towards the rent via his LCWRA/UC normally, but we are not sure if there would be questions as to why he would leave a rent free property for a rented one, and if help with the rent would be denied because of this.

I should add that we kept the bigger house and rented it when we moved away, never raising the rent from when we first rented it in 2016 (its not a business), as it was always pencilled in for him, but we were unsure back then if he would be able to live independently (he has Autism, severe dyslexia and a few other issues). We would not be increasing the rent if and when they move there, keeping it the same as it has since 2016, and understand that there would need to be a fully legal lease as per our other tenants.

I would certainly be able to explain that the bigger house and the area it is in are more suited to his needs, and nearer to us so we can support him/them easier, and that the high school in that area is much more suitable to the young girl going forward, but not sure if these would be considered acceptable reasons for the move.

We could of course charge him a small rent on the ex parental home, but then again would their be questions as to why he would move to the bigger mortgaged and therefore higher rented one.

Sorry, such a long thread. Any advise would be gratefully appreciated, thank you.

HillStreetBlues

There will be no questions about moving to a property where rent has to be paid from a rent free one. Renting to family contrived tenancy will always crop up, but in your favour is that you have history renting the property and need to rent money to pay the mortgage. To make it as watertight as possible do as you suggested and have a tenancy agreement in place, and to treat him like any other tenant (eg kick him out if he fails to pay the rent).
What is the current rent your tenants pay compared to the Local Housing Allowance? https://lha-direct.voa.gov.uk/

itsthelittlethings

Does partner work? That could affect the benefits your son will be eligible for.

Spikeygran

Just a few thoughts:

Once the existing tenants have moved and son is ready to move in you might want to set a fair market rent, and let them claim any benefits appropriate to their combined income.

I appreciate you wanting to keep it reasonable to help your son, but if he ended up moving out (he may not be able to cope) the then ex girlfriend and child will be benefitting from the lower rent. You dont want to be in a situation where you are out of pocket long term once house maintenance has been factored in.

From the girlfriends point of view I assume she would expect to be on the tenancy, having given up her existing home, to provide security for her child.

Clueless589

Thank you for your input so far …..

Does partner work? That could affect the benefits your son will be eligible for.

Sons partner would have to give up her current job to move (from England to Scotland) and would initially apply for UC, but would be looking for work asap. Part of the beauty of the relationship appears to be that she would be able to work full time (as she does now) which she desires, whilst son takes on parenting and house duties, as he finds work and public difficult to deal with.

Re tenancy, yes we would put both son and partner on the tenancy. I will look at what the fair market rent is, and also what they/he would be able to claim towards rent via UC.

Thank you for your support.

Clueless589

PS @HillStreetBlues "lets be careful out there" Sergeant Phil if I remember correctly. Those were the days ..