'Contrived' letting to family member; effect on LHA/HB

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  • 'Contrived' letting to family member; effect on LHA/HB

    will the dss pay private rent on a house owned by my father if i was on income support n carers allowance to look after him.
    Last edited by mackey1224uk; 15-02-2008, 20:21 PM. Reason: spelling mistake

  • #2
    See advice here but consider contacting Shelter or Citizens Advice Bureau for your particular circumstances. Looks like if you live in the same property, it's unlikely. If you live in separate properties, you would have to prove it's not a contrived tenancy.

    http://england.shelter.org.uk/advice/advice-7386.cfm

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    • #3
      The DSS (or DWP now) won't pay you a penny.

      All housing benefit or local housing allowance is now paid by local authorities (or the council as they are usually known as).

      Generally you cannot get HB/LHA for a let where the landlord and tenant are closely related. There are some exceptions depending on individual setups and proof that its not a contrived tenancy (i.e. set up to take advantage of the HB/LHA system)

      The people you need to speak to before setting anything up in stone are the HB/LHA department at your local council offices.

      Comment


      • #4
        If your father has a mortgage and is living in the house in question, he may be able to get help with housing costs. I would advise you to go to your local Citizens Advice bureau and ask them to do a benefit check for you tp make sure you and he are getting all you are entitled to.

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        • #5
          Is LHA paid when renting from family?

          Hi.

          My cousin has recently seperated with her baby's father, and wants to live closer to her parents home. She has tried to find a property to rent closer to her parents, but is struggling to find landlords who accept LHA T's in the area.

          If her father was to buy a property and let it to her, would this effect any LHA she would normally receive?

          Comment


          • #6
            They will not allow this.
            Sorry to sound rude but half the country would be trying for it if this was the case.
            Good luck with your search anyway.

            Comment


            • #7
              Yes, it's possible under some circumstances, the criteria is outlined here

              http://england.shelter.org.uk/get_ad..._family_member

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              • #8
                'Contrived' letting to family member; effect on LHA/HB

                i own a property but live away from the property,i only return to the property once a fortnight to check it is ok, i would like to ask if it would be legal for me to rent my property to my father, who is unemployed and as such would need to claim the appropriate benefits to cover the rent, at present my father lives in my property with me covering all the mortgage council tax and bills. My point is since i dont live in the property and wouldnt be living in it even if my father wasnt living there could i rent it to him legally with him claim benefits. if he lived anywhere else they would but im not sure on the rules about renting from family. cheers for any advice .

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                • #9
                  Here's an answer offered by Shelter.

                  If you have an ordinary residential mortgage and let the property, the mortgage lender will almost certainly object. If you have a BTL mortgage, the mortgage lender may have rules against letting to family members.

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                  • #10
                    Letting to a relative: can T still claim LHA/HB?

                    Hi

                    My sons partner and our grandchild have moved into a flat my wife and i own,They have have just returned from Australia.Our grandchild is only 8 weeks old so the mother cannot work so will be claiming whatever she is entitled to.She is british and the baby dual nationality.Would she be able to claim rent assistance even though we are obviousley relatives by our surnames.

                    Thanks James.

                    Comment


                    • #11
                      Originally posted by Poppy
                      Here's an answer offered by Shelter.

                      If you have an ordinary residential mortgage and let the property, the mortgage lender will almost certainly object. If you have a BTL mortgage, the mortgage lender may have rules against letting to family members.
                      Many thanks Poppy,

                      We dont have any mortgage on this Flat.

                      James.

                      Comment


                      • #12
                        No mortgage = no problem in this scenario

                        I realise that everything is amicable now and you want that to continue. I hope that you know about landlord and tenant rights.

                        Comment


                        • #13
                          Family letting deemed a contrived tenancy- options?

                          my wifes grandmother applied for housing benefit about 4 years ago the property she lives in is owned jointly by my wife and her father he is not her son this was refused and deemed a contrived tenancy is it worth trying again or would the outcome be the same

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                          • #14
                            Originally posted by carduelis View Post
                            my wifes grandmother applied for housing benefit about 4 years ago the property she lives in is owned jointly by my wife and her father he is not her son this was refused and deemed a contrived tenancy is it worth trying again or would the outcome be the same
                            Your wife's father he is not her son?
                            Sorry, this is really hard to follow.

                            However, if nothing has changed since the last time you applied, the likelihood is that the outcome will be the same.

                            Why do you think it might be different this time?
                            'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

                            Comment


                            • #15
                              Landlord = father and daughter (carduelis' wife)
                              Tenant = mother-in-law to cardelius' wife's father and grandmother to carduelis' wife

                              Does that help?

                              Is the tenant's rent at a market rate? If so, it may be worthwhile re-applying for local housing allowance.

                              Comment

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