Renting a flat from a partner

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  • Jess Carr
    started a topic Renting a flat from a partner

    Renting a flat from a partner

    A friend of mine has been in a relationship for 30+ years, but has never actually lived with his girlfriend. Recently she inherited some money and has suggested buying him somewhere to live, so that she is his landlady. He is in his mid-60s and claims HB at his present address. He works very occasionally.
    He believes he would not be eligible for assistance with his rent because his landlady would be his girlfriend - but she has no intention of leaving her own place and moving in with him and, as I say, they've never lived together anyway. No children. What do people here think about this - would he be able to get any help? Am seeing him later today and would like to give him some advice. Many thanks!

  • buzzard1994
    replied
    Originally posted by theartfullodger View Post

    General rule: Never rent to friends of family. Too may examples of it ending in tears.
    Definitely!

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  • theartfullodger
    replied
    Indeed: See info from the experts here..
    https://england.shelter.org.uk/housi...ng_from_family

    What might work (but still expect arguments from council HB team/ HMRC /DWP ..) would be to buy a place, rent it normally at commercial rates for a bit, then evict that tenant, advertise at normal commercial rates then let to "partner" on normal terms, all paperwork and be resolute she will evict him if there are problems and ensuring all rent is always paid in full on-time, declared and reported to HMRC.

    The authorities are quite rightly on the lookout for family members basically being on the fiddle (e.g. buying somewhere for a relative to live for free, claiming HB and splitting the HB between occupant and owner).

    General rule: Never rent to friends of family. Too may examples of it ending in tears.

    Leave a comment:


  • jpkeates
    replied
    Your friend is correct - the DWP will almost certainly not accept that the arrangement isn't designed to take advantage of the benefits system.
    The "rent" would be used to benefit your friend (food, drink entertainment, holidays), so the relationship is not a normal commercial one.

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  • boletus
    replied
    Have a search for "contrived tenancy".

    Leave a comment:

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