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Renting a house to family

Dub1 Avatar
8y, 8m agoPosted 8 years, 8 months ago
My old man wants to buy a house to rent to my sister (who claims housing benifit)

can this be done?, do you no who he could ask what would need to be done etc
Dub1 Avatar
8y, 8m agoPosted 8 years, 8 months ago
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banned#1
yes this can be done, just hope they dont look to far into it
#2
I thought that you could not get Housing benefit paid if you were renting from family

[COLOR="Blue"]Can I claim housing benefit?

You can claim housing benefit if you have to pay rent in order to live in your home. Housing benefit is based on your and your partner's income, savings and circumstances and the amount of rent you have to pay. You cannot get housing benefit if:

You or your partner have joint savings and investments of more than £16,000, unless you are in receipt of guaranteed Pension Credit.
You pay rent to a close relative who lives in the same home as you.
You own the place where you live. [/COLOR]


http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/On_a_low_income/DG_10018926
banned#3
oh didnt realise the father was going to be living there
#4
sassie
oh didnt realise the father was going to be living there


No I don't think he was, I just copied the wrong bit in, :oops: I should have copied

[COLOR="RoyalBlue"]Who isn't eligible?
You can't usually get Housing Benefit if:

you have savings of over £16,000, unless you are aged 60 or over and getting the 'guarantee credit' of Pension Credit
you live in the home of a close relative
you're a full-time student (unless you're disabled or have children)
you're an asylum seeker or are sponsored to be in the UK [/COLOR]

From memory, unless the relative can prove that they are a "proper" landlord with other properties etc, then you cannot claim housing benefit.
Best to check with the CAB for the exact rules, as they vary slightly in interpretation from area to area.
banned#5
The problem is to get a mortgage company that will give you a buy to let mortgage under these circumstances is going to be a hard one
#6
thanks for reply's best get him to look into it deeper
any idea's on who he could contact
he wouldnt be living in the property, but would be buying it to rent to my sister, but he wants it all legal etc
but the above reply's make it look like it cant be done
wonder if he went through a property letting agent etc would it make a difference
#7
sassie;1755950
The problem is to get a mortgage company that will give you a buy to let mortgage under these circumstances is going to be a hard one

Buy 2 let has become stricter since the credit crunch and you would have to find a big deposit...maybe as much as 20-30%
banned#8
Dub1
thanks for reply's best get him to look into it deeper
any idea's on who he could contact
he wouldnt be living in the property, but would be buying it to rent to my sister, but he wants it all legal etc
but the above reply's make it look like it cant be done
wonder if he went through a property letting agent etc would it make a difference


You will need to check with your local housing benefit office and even if she can get this, i doubt very much any mortgage company will give him a buy to let mortgage with these circumstances

What is wrong with your sister is now living?
#9
We did something similar for 2 years. We involved a third party to act as Landlord. This meant we could honestly say we were not related to our landlord, when asked.
At the end of the day, no one is being ripped off, if a mortgage needs to be paid.
banned#10
savagevixen
We did something similar for 2 years. We involved a third party to act as Landlord. This meant we could honestly say we were not related to our landlord, when asked.
At the end of the day, no one is being ripped off, if a mortgage needs to be paid.


Yes everyone is being ripped off, the goverment is there to help those in need, not to line the pockets of those that arent
banned#11
He hasn't even said if he needs a mortgage.

But, you are not allowed to claim the rent on a house that is owned by relatives.
#12
her current landlord has upped the rent to a £1000 a month for a 1 bed flat (she has 2 kids)
and the landlord had said he would help her move to a bigger property which he is saying now he wont (to make it worse her property dont have central heating and she + her son have asthma)
my dad has £50,000 to put down and only want a £100,000 mortgage
#13
sassie;1756013
Yes everyone is being ripped off, the goverment is there to help those in need, not to line the pockets of those that arent

well said!:thumbsup:
#14
Dub1;1756023
her current landlord has upped the rent to a £1000 a month for a 1 bed flat (she has 2 kids)
and the landlord had said he would help her move to a bigger property which he is saying now he wont (to make it worse her property dont have central heating and she + her son have asthma)
my dad has £50,000 to put down and only want a £100,000 mortgage

I would buy it on a normal mortgage if you are going to go ahead, just don;t tell the lender
#15
sassie
Yes everyone is being ripped off, the goverment is there to help those in need, not to line the pockets of those that arent

:x err hello?
We were renting a property and claiming HB. My parents had a property, that they couldn't sell (it wouldn't) and needed an income as the had a large mortgage. We rented the property for 2 years as it was bigger than the other one we rented. Nobody profited from this (the rent was way under the mortgage) and why does it make a difference whether our HB paid for property A or B?
We could not have lived there rent free, no one's pockets were lined (so get your facts straight-idiot)
When we contacted our HB department for advise, they advised that if we could prove we paid rent and were not related to our landlord the we could claim HB.
Idiots like you are the problem with this country.
#16
i think he may better just paying for a deposit for a new flat
cos now i stop and look @ it from the outside it may seem liek to some he is just doing it to have a mortgage paid etc
but i can honestly say he wasnt thinking of it like that
banned#17
savagevixen
:x err hello?
We were renting a property and claiming HB. My parents had a property, that they couldn't sell (it wouldn't) and needed an income as the had a large mortgage. We rented the property for 2 years as it was bigger than the other one we rented. Nobody profited from this (the rent was way under the mortgage) and why does it make a difference whether our HB paid for property A or B?
We could not have lived there rent free, no one's pockets were lined (so get your facts straight-idiot)
When we contacted our HB department for advise, they advised that if we could prove we paid rent and were not related to our landlord the we could claim HB.
Idiots like you are the problem with this country.


I think your post speaks for itself:roll:
#18
warmapplepie
well said!:thumbsup:


If it were true.
#19
Dub1
her current landlord has upped the rent to a £1000 a month for a 1 bed flat (she has 2 kids)
and the landlord had said he would help her move to a bigger property which he is saying now he wont (to make it worse her property dont have central heating and she + her son have asthma)
my dad has £50,000 to put down and only want a £100,000 mortgage


£1000 a mth, thats crazy. I have a housing association house now ( £77 a week ) but before that we had a 1 bedroomed flat which was private rented,very shabby it was,at time I had a baby and we moved in with my parents for 6mths waiting to be homed properly as council couldn't help us at time and there was noway I was staying where I was with a baby cos flat was so shabby,damp,didn't heat properly and so many other things. My rent back then was £70 for this flat which was bk in 2000,as the private rent really gone up so much.
#20
This is well dodgy, considering what she has at the moment why isn't she on the list for a council home. Single woman with 2 kids should get quite high up the list, might have to go into a bedsit for a while though.
banned#21
savagevixen
If it were true.


if you and your family want to frauduantly claim off the goverment then that is fine, but please try not to be so rude to those that see it
#22
savagevixen;1756041
:x err hello?
We were renting a property and claiming HB. My parents had a property, that they couldn't sell (it wouldn't) and needed an income as the had a large mortgage. We rented the property for 2 years as it was bigger than the other one we rented. Nobody profited from this (the rent was way under the mortgage) and why does it make a difference whether our HB paid for property A or B?
We could not have lived there rent free, no one's pockets were lined (so get your facts straight-idiot)
When we contacted our HB department for advise, they advised that if we could prove we paid rent and were not related to our landlord the we could claim HB.
Idiots like you are the problem with this country.


sassie;1756056
I think your post speaks for itself:roll:


savagevixen;1756058
If it were true.

but savagevixen, this poster IS related to the prospective landlord or does father not count? :oops:
BTW Old man means her dad not an old man from the street ;-)
I'll stick up for you Sassie :friends:
#23
so was savagevixen, it was her parent's property. Read their post they completely ignored the HB office advise about renting from a relative.
#24
pinkleponkle
This is well dodgy, considering what she has at the moment why isn't she on the list for a council home. Single woman with 2 kids should get quite high up the list, might have to go into a bedsit for a while though.


Yes thats a point.
You would get a lot of points under whatever scheme they run to rehouse you. The minium they would like to give would be a 2 bedroom property,even if they housed you in a 1bedroom flat it would only be temporary,a few yrs at most I would think. I have a friend in North London and she had a baby and was given a 1 bedroom flat,they now given her a 2bedroomed place but she had about 4yrs wait for it. She doing well,she at uni and she be on her last yr soon of medical.
#25
sassie
I think your post speaks for itself:roll:


So if lived in property A and claimed Housing Benefit, and my friend lived in property B (owned by my relatives and with an agricultural tie, so it could not sell for 2 years until the end of the 10 year tie) and she claimed HB, that would be ok.
But if She moved into Property A and claimed HB and I moved into B and claimed HB, then that is morally wrong and someone is being ripped off? Who and why?
I stumbled across this thread by accident and comented, as 2 years ago, we contacted the Housing Benefit department and were advised we could do this. What exactly is your problem? We did nothing wrong, and in the months my husband's wages were up, paid the rent ourselves (obviously).
I understand that some people could rip the system, but we quite legitmately rented a house and when the legal tie came of the property it was sold. I dont see why it matters who rented the property?
#26
Mum2Connor&Cerys;1756063
£1000 a mth, thats crazy. I have a housing association house now ( £77 a week ) but before that we had a 1 bedroomed flat which was private rented,very shabby it was,at time I had a baby and we moved in with my parents for 6mths waiting to be homed properly as council couldn't help us at time and there was noway I was staying where I was with a baby cos flat was so shabby,damp,didn't heat properly and so many other things. My rent back then was £70 for this flat which was bk in 2000,as the private rent really gone up so much.

£1000 a month and you could live in a real palace.
Some people don't know when they've got it good!
banned#27
savagevixen
So if lived in property A and claimed Housing Benefit, and my friend lived in property B (owned by my relatives and with an agricultural tie, so it could not sell for 2 years until the end of the 10 year tie) and she claimed HB, that would be ok.
But if She moved into Property A and claimed HB and I moved into B and claimed HB, then that is morally wrong and someone is being ripped off? Who and why?
I stumbled across this thread by accident and comented, as 2 years ago, we contacted the Housing Benefit department and were advised we could do this. What exactly is your problem? We did nothing wrong, and in the months my husband's wages were up, paid the rent ourselves (obviously).
I understand that some people could rip the system, but we quite legitmately rented a house and when the legal tie came of the property it was sold. I dont see why it matters who rented the property?


If you couldnt see what you had done you wouldnt have been so rude, i will leave it there
#28
pinkleponkle;1756091
so was savagevixen, it was her parent's property. Read their post they completely ignored the HB office advise about renting from a relative.

you're right there....
#29
sassie
if you and your family want to frauduantly claim off the goverment then that is fine, but please try not to be so rude to those that see it

We did nothing wrong, followed the HB office advice and made not a penny. I have found your comments, implying we have fraudulently ripped of the government as disgusting. I was honestly replying to a question. We were very careful to make sure what we did was legal, and i resent the implication we are hideous bludgers. So perhaps you could not be rude to those who had no idea people would take offense to what the were advised to do. (By Housing Benefit staff)
#30
warmapplepie
£1000 a month and you could live in a real palace.
Some people don't know when they've got it good!


Who don't know they got it good?
#31
You would think she would be high up on the list wouldnt you but sadly not as the council say '' she aint homeless ''
even the housing benifit inspector who visited last week said he was shocked they charged £850 a month for the property (this was b4 the rise - she got a letter just 2days ago)
she has no central heating only electric heaters and had no running hot water for 6 months (when she first moved in due to a fault fuse box switch - which took 5+ visits to fix)
i really would rather this topic didnt start a slagging match lol
just to make ti clear my dad didnt want to rip off the state and did not want to make profit he just wanted to no he brought a house rented it to my sister would it affect her housing benifit
#32
It is morally wrong to claim benefits and pass them onto your parents, pure and simple.

If she can't afford the price hike then the council would help out straight away. She needs to go down to the office and explain the situation, it'll take a while to sort it all through, but it'll be ok
#33
kidcat
No I don't think he was, I just copied the wrong bit in, :oops: I should have copied

[COLOR="RoyalBlue"]Who isn't eligible?
You can't usually get Housing Benefit if:

you have savings of over £16,000, unless you are aged 60 or over and getting the 'guarantee credit' of Pension Credit
you live in the home of a close relative
you're a full-time student (unless you're disabled or have children)
you're an asylum seeker or are sponsored to be in the UK [/COLOR]

From memory, unless the relative can prove that they are a "proper" landlord with other properties etc, then you cannot claim housing benefit.
Best to check with the CAB for the exact rules, as they vary slightly in interpretation from area to area.



Note how it says the HOME of a close relative, which means they live there too so if he doesn't live there (which he wont) you're not breaking the rules.

Personally I don't see it any different than her renting it from someone else and don't think it will be a problem. In fact if he were to charge £600 a month instead of £1000 then wouldn't the benefit system be saving £400 a month, she gets a bigger and healthier place for her son to grow up in, everyones a winner:whistling::thinking:
#34
savagevixen;1756099
So if lived in property A and claimed Housing Benefit, and my friend lived in property B (owned by my relatives and with an agricultural tie, so it could not sell for 2 years until the end of the 10 year tie) and she claimed HB, that would be ok.
But if She moved into Property A and claimed HB and I moved into B and claimed HB, then that is morally wrong and someone is being ripped off? Who and why?
I stumbled across this thread by accident and comented, as 2 years ago, we contacted the Housing Benefit department and were advised we could do this. What exactly is your problem? We did nothing wrong, and in the months my husband's wages were up, paid the rent ourselves (obviously).
I understand that some people could rip the system, but we quite legitmately rented a house and when the legal tie came of the property it was sold. I dont see why it matters who rented the property?

because you could be living in your dad's house, he could be poor, then you decide to buy a house paid from the social by moving out of your own home.
You would then profit twice, your dad cos he is getting an investment for free and you because you would get a new property.
What people don't like is that your parent's got free money and you all benefitted twice from the government pot!
banned#35
savagevixen
We did nothing wrong, followed the HB office advice and made not a penny. I have found your comments, implying we have fraudulently ripped of the government as disgusting. I was honestly replying to a question. We were very careful to make sure what we did was legal, and i resent the implication we are hideous bludgers. So perhaps you could not be rude to those who had no idea people would take offense to what the were advised to do. (By Housing Benefit staff)


You claimed you where not related to the landlord, did you not? I made no implication of anything to you, you hadnt even posted till i had, so i think maybe you need to look and re-read what i have posted and what you have
#36
Mum2Connor&Cerys;1756129
Who don't know they got it good?

the one who is currently paying £1000.
I was saying if you had £1000, I am sure you would love it so the other poster has got it too good. £1000 must be a good property.
#37
i think one point soem are missing is you cant just go to a council and say hello i need a bigger flat as i have 2 kids
1) she renting private not from council @ the moment
2) she has visited and joined the wandsworth council list (she has been told she faces a wait of 7yrs+ for an offer)
they said she wouldnt be instantly helped if she was made homeless (but not if she made her self homeless)
#38
savagevixen;1756127
We did nothing wrong, followed the HB office advice and made not a penny. I have found your comments, implying we have fraudulently ripped of the government as disgusting. I was honestly replying to a question. We were very careful to make sure what we did was legal, and i resent the implication we are hideous bludgers. So perhaps you could not be rude to those who had no idea people would take offense to what the were advised to do. (By Housing Benefit staff)

but you were not advised by HB staff that you can rent from your parents
#39
I will just say this from being a landlord and previous experience of this, don't EVER mix family and business it will end bitterly, when comes to the responsibilities of the landlord for maintenance costs etc.
#40
Dub1
You would think she would be high up on the list wouldnt you but sadly not as the council say '' she aint homeless ''
even the housing benifit inspector who visited last week said he was shocked they charged £850 a month for the property (this was b4 the rise - she got a letter just 2days ago)
she has no central heating only electric heaters and had no running hot water for 6 months (when she first moved in due to a fault fuse box switch - which took 5+ visits to fix)
i really would rather this topic didnt start a slagging match lol
just to make ti clear my dad didnt want to rip off the state and did not want to make profit he just wanted to no he brought a house rented it to my sister would it affect her housing benifit


Lots here have expressed their opnions,the majority who will come and read the thread will think its wrong.
I would suggest that maybe she speak to the landlord of the property and ask if he do a letter of eviction and then she will be classed as homeless.She needs to be evicted on grounds that the landlord doens't think the property is suitable for her and her 2 children and requires her to move out. The only problem I can see arising is if the council try and turn the tables on you and start asking you to seek legal advise on eviction. when I was in this very shabby flat,I tried this method,landlady agreed to it 1 day but then when crunch come she refused. We'd been on list for housing anyway and the flat we moved into we onyl moved in there cos of an eviction from a decent flat we did rent. The landlord to that place wanted it back to move himself.Council was willing to help and infact they find us a flat but it was out of town and at time cos we been looking ourselves we just moved into what we found,then realised how unsuitable it was. I got pregnant unexpected,even though we been trying for a long while,we thought it wasn't going happen for 1 reason or other and forgot about it.
Anyway council still wouldn't budge so as I said we moved into my parents and stayed there till some suitable offer come up.

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