Housing Benefit and renting from BIL(9 Posts)
I am sorry i really didn't know where to post this...
Basically DH and i are planning to move out with our disabled child we currently live with MIL. DH is on low income and i have recently left work to look after ds. At the moment we are in receipt of Tax credits, child benefit and have recently been awarded dla higher rate care for 2 year old ds and therefore i recieve carers Allowance.
The property we are to move to is owned by dh brother who is renting it to us for £650 pcm which is the standard rate for other properties on that road however our family support worker mentioned we should put a claim for housing benefit as it would help us but having looked into it online it says we cannot claim if renting from family members. we do have a teneancy agreement and even some help with rent would help so much.
so aibu to complete a form or does anyone have any experience with this sort of stuff?
i would really appreciate any help or advice i really don't know how all this works.
Thanks in advance
Yes you can. They will just want to check that the rent is in line for that area and that you’re not both using it to extract unnecessary funds.
You said you have a tenancy agreement and the legality of this will be checked by them.
You also need to make sure the property is adequate and that you’re not over accommodating yourselves or you could be responsible for a higher portion or all of the rent.
From what you have said, it will need to be a 2 bed.
Please make sure both sides understand that should he wish you to move out in the future, he will have to issues a section 21 and likely go through the eviction process.
He will have to maintain the property and get relevant landlords insurance. You will have to maintain your side and pay on time.
The relationship isn’t worth damaging so make sure you’re both clear.
I have family rent from me. My biggest worry was they would tell me they haven’t got it this month etc but for years it has worked out great for both sides.
thank you for your reply.
We wanted it to do it the right way around dh has a standing order every month for the amount to straight to BIL account. we are so grateful that he has offered to help us but even the slightest amount of financial help would be appreciated as property was redecorated before we moved in however unfurnished and we are currently not in a position to buy anything yet. friends and family have donated a lot of the stuff which has obviously saved our lives.
From the Citizens Advice website...
"You may be excluded from Housing Benefit by this rule if you pay rent to a close relative who also lives in the home, or to a former partner for the home where you used to live together"
It looks like it's OK if your BIL doesn't live in the house, but it might be a good idea to check with the HB people too.
The OxyMoron is right, you do need to get a proper tenancy agreement from him and treat it as a normal tenancy.
I think it only applies to parents homes.
As long as there is a tenancy agreement in place it should be fine, they'll need to know where BIL lives etc.
Good luck in your new home.
This assumes that his mortgage allows him to rent to family members - most buy-to-let mortgages don't allow this.
Has the property been rented to non relatives before?
If it's an existing rental you should be fine with HB.
If you will be first tenants it could be seen as a contrived tenancy.
It has to be a proper tenancy - ie, let out on a commercial basis - to get HB. The landlord being a relative is not a problem as long as it’s clear that you are legally liable for rent, that rent paid is a proper market rent, and you have proper tenants rights - eg exclusive possession.
You are excluded from HB if your landlord is a relative and lives in the property with you, or if the tenancy was created purely to get HB.
Be prepared for some HB staff to apply rules or advise incorrectly though!
You might have to claim Universal Credit instead of Housing Benefit now. It would be worth checking with Citizens Advice.
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