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Housing benifits - any ideas how it works with pte/parental rents (am a reg honest!)

(22 Posts)
DavidTennantsMistress Wed 26-Sep-07 12:44:09

honest I am! lol. twathead (xh) has been reading my posts so have had to change. (he's even reading ones about my housing situation - sadact)

anyhow, our council is looking increasingly like a no go - mainly as pretty much 90% of the housing on the selcet thing is for over 60's so i'm now looking at private rents, as well as MOD nominations scheme once TH decided to tell them at work we're actually seperated now, and I get my forms from DHE (should give you some idea of who I am)

anyhow, what happens witht eh pte rent side of things - is there an upper limit that they'll be looking at? I think we're only entitled to a 2 bed under the council but could I got for a 3 under the pte rents? how much benifit will I get from the hosuing so I know how much I need to make up with from my money.

also my parents are considering (if all else fails) to buy a second home and rent it to me for me and DS - it will all be official and I will have to be paying the rent (basically cover the morgage repayments each month) so will the housing people pay in that instance or will they basically tell me to bugger off as obv they will then think my parents can afford to keep DS and I. (which tbh they can't do - and I wouldn't be able to afford the rent alone from my parents) (around here I would assume they'd need £150K morgage so rent would be around £700 p/m ish) I would assume.

peskipixie Wed 26-Sep-07 12:53:43

the only way you can say how much rent they will give you is by filling out a predetermination form, hopefully they sort it out before the house is let to someone else hmm

my parents let me a house, i made sure the hb payments went straight to them so they couldnt accuse me of keeping them. dont bother mentioning the mortgage, its not relevant. they wil1l have to give you a contract and charge you rent just like any other landlord. i ended up having to pay extra £10 per week but i got a 3 bed house for that, was only entitled to 2 under council.

this was a few years ago but have been trying to help a friend more recently so hopefully should be some use.

DavidTennantsMistress Wed 26-Sep-07 20:29:28

oh that's intresting - obv getting the benifits paid straight to any landlord is preferable for me (my parents incl - as believe you a me I wouldn't be allowed to keep the money by them iycwim). I did assume we'd need a legal contract of some sort - it's also preferable for me as then i'll be able to keep both of my dogs, and also not worry about us being evicted/having to move about again iycwim. like you i'd happily pay the extra £50-£100 max I think for a nice rent in a good area than not in a bad iycwim.

how does the predetermination forms work? the woman at the council said to me - and I quote.

'the army are pretty good - they won't make you homeless and we won't help you until you get a 28 day eviction notice' angry really pissed me off tbh. so she has said this side of xmas i'll get nothing - i'm on the list but tbh out of the 4 houses today 1 was a bedsit, the other 3 were for the over 60's - I looked last week and it was 2 over 60's 1 bedsit and one 2nd floor flat about 15 miles away - I know I can't be picky - but 40 odd people went for that one alone.

Tottie32 Wed 26-Sep-07 20:31:59

if you cant get private rent

when i was 21 and pregnant with dd1. my parents bought a flat and i had rent HB paid to them for 2 years it was no problem.

edam Wed 26-Sep-07 20:43:59

I know someone who was prosecuted for claiming housing benefit for a house owned by her parents. She was genuinely unemployed and entitled to benefit, but hadn't made it clear the landlord was her mother.

So be careful - point out the family relationship so you know it's OK before the benefit people hand over any money.

DavidTennantsMistress Wed 26-Sep-07 20:54:57

will do edam don't worry - the last thing I want/need is that sort of trouble as well - they have on all of my forms M&D's name and address etc.

do you know if they check actually to see the type of hosue M&D have - they have a 3 bed semi, and if the council look, they'll see there's only 2 people registered as living in this house. (dads fears there) the worry is the council will say I can live here long term - which realistically isn't an option for so many reasons (not long term anyways)

gomez Wed 26-Sep-07 20:58:48

Be careful - I know someone who was refused benefit on the basis that her parents had specifically bought the flat for that purpose. Apparently if they have had the flat for a number of years and it was a genuine business (i.e. not bought specifically for a family member) then HB would have been paid.

DavidTennantsMistress Wed 26-Sep-07 21:09:39

ah in that instance we'd both be in the creak - I wouldn't be able to afford the rent alone, and the oldies (parents he he) would def struggle - esp as tbh they pay a lot more into the pension than they need to now they don't have a morgage iycwim. so wouldn't be able to do both - and it's unfair of me to ask they reduce the pension to pay a morgage - (I wouldn't do that anyways) hmm.

it's looking less likely they'll be able to do it then, no matter how good the intentions are. I don't want any of us to end up in trouble - financial or legally.

HappyMummyOfOne Wed 26-Sep-07 21:09:40

The above link may be of some help, it states that housing benefit may be declined if the house is owned by a close relative and also bought just to take advantage of housing benefit.

You also have to think about what happens if you want to move in with a new partner, you cant work etc - would your parents be able to cope with the burden of the mortgage?

80sMum Wed 26-Sep-07 21:10:46

You might find this useful.

DavidTennantsMistress Wed 26-Sep-07 21:13:34

no it would have to be sold - it's not been mentioned from the pov of taking advantage of the system at all - it's been suggested as a way for me to do a long term secured rent iycwim. if pte rent was/is the only way for me to go then it would make things more secure iycwim.

for the minute we have a lot of ideas being tossed about in the pot so to speak, and this was one.

blossomsmine Wed 26-Sep-07 22:06:20

Hope you don't mind me butting in for a minute..sorry.
Could housing benefit be paid if a mum and kids lived in a house owned by her ex partner?? Thats what my sister wants to do, the ex is wanting to rent his parents old house out to them, but she is worried the hb won't be paid. Very confusing situation....!!??

peskipixie Thu 27-Sep-07 12:22:33

i think maybe the wording is important here reading gomez post. my parents bought a house as an investment. i needed somewhere to rent. they only bought the house because they knew they could trust me as a tenant, i moved straight in so it had not been an ongoing business. we were not taking advantage of housing benefit, i needed a house which would have to be funded by hb as i was a single parent, my parents bought an investment. maybe talk to your housing office, as long as you make it clear what you are doing they should be able to tell you if its ok

DavidTennantsMistress Thu 27-Sep-07 13:27:56

bm - I don't see why not but you'd need to tlak to your housing officer to see - at our one you get an application form to fill out to see if you're eligable.

my council seems to prefer folks to look inot pte renting as they literally do not have the houses - some people apparenly have been on the list for 2 years - i'm not snobby and will go to a B&B if need be with DS for a month - 6 week but not 2 years. that is mick taking. - those are the sort of circs that my parents are talking about. on the other hand thou in the long term, if they did put up then cash and I rented, once sorted out and 5-10 years down the line then possibly I could buy it from them at the market rate - all ideas being thought about, so they would have an investment as well iycwim, will alos help tehm with the pension pot which at the mo is a bit bleak.

thanks for all your input btw.

ruddynorah Thu 27-Sep-07 13:31:04

150k mortgage will be a heck of a lot more than 700 ish a month at todays rates. depending on duration of mortagage they can get at their age.. 150k over 35 years as around the 850-900 mark. if they're nearing retirement age then they won't be able to get a mortgage for such a long time.

DavidTennantsMistress Thu 27-Sep-07 13:34:28

ah iddn't think of that. (am going on DB's morgage over 35 years (althou is fixed rate) and that's £700 odd. will prob have to do intrest only then, dad is 52 mum is 49 so not sure how they'd get on wiht the term of a morgage - or indeed if intrest only would be better? but as I say that would be down the line iycwim if I can't sort housing elsewhere. at the mo some pte rents are moaning about the fact I ahve a toddler never mind pets - (I can re home the pets but not DS)

MillieMummy Thu 27-Sep-07 13:36:23

..other things to think about. Have you heard about shared ownership (partbuy/part rent). You get a mortgage on one part (your parents could put down a deposit for you) and the other part is a social rent. Also, lots of authorities encourage private renting by offering deposits (they should be able to help with a pre-tenancy determination too).

ruddynorah Thu 27-Sep-07 13:38:12

yes interest only would be an option. your db's rate may well be lower than today's rates, even if he just took out his mortgage a year ago.

DavidTennantsMistress Thu 27-Sep-07 13:38:43

oh how does that work? i've heard of them but not really looked into it properly as dad wasn't keen on the idea of not owning the house - he seems to think the rent + the morgage repayments would be roughly the same as a full morgage iycwim.

def something to think of thou - think that's worth a call to the local council - what sorts of companies do those?

MillieMummy Thu 27-Sep-07 13:42:52

I live in a shared ownership house. We bought in 2001, house valued at 240K (south london prices) - we have mortgage on 40% and pay rent on the other 60%. the rent is a social rent (ie not market) so the rent is only 300 per month.

Look at this for info. your local authority should be able to tell you who offered shared ownership in your area, will be run by housing associations (sometimes called RSL's).

Toothyboy Thu 27-Sep-07 13:49:14

There may be some information here to help you.

DavidTennantsMistress Thu 27-Sep-07 14:00:18

judging by that toothy I should be ok - as the rent will be paid regardless - i'm afraid me parents although v v generous are not so generous to give me a free ride as it were and no rent. would all need ot be legal and above board esp as dad's SE so I would imagion his accountant would want everyhting right for their benifits as well?

there's a nice house close by to me on there a 3 bed 50% share, 105 K morgage and £180 rent so that sounds ok dep on teh morgage rent. only thing is thou not sure if we'd be able to - I can't get a morgage at all. and they can get a full morgage and have an exsisting home?? shame as it's really nice.

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