Finding a new property

[louisag1992]

My mum has agreed to be my guarantor. What is the actual difference to that and her just being on the tenancy?

No right to live in the property, but if you don't pay the rent, they can pursue either of you. Presumably your income is not high enough to pass the affordability test.

Pretty much, estate agents require me to be on 25k a year, I was wandering whether it would be worth having her as a lead tenant and me as permitted occupant?

No, your mum shouldn’t be on the tenancy, she won’t live there. If she’s on the tenancy she woukd be responsible for council tax. She should be guarantor only.

If she were on the tenancy but not living there she would be responsible for paying rent and effectively subletting to you. As guarantor she only pays if you default. Are you expecting to claim HB?

I thought if I was a permitted occupant it wouldn't be subletting. Yeah, a top up whilst on maternity allowance.

You need to be the tenant for hb surely?

Oh yeah true I'd not thought of that. I'm hoping to get away without telling them it's HB. As I'll get maternity allowance and tax credits with only a top up of HB.

HB is paid in arrears, rent is paid in advance. How are you going to pay the rent in advance if you get the money in arrears? Housing benefit is also paid every 28 days weresas rent is paid per colander month. How are you going to ‘get away with it’.

Better to be upfront with the landlord as any problems you void the agreement.

Landlords need to know for insurance whether tenants are working full time, claiming any benefits. By not telling them you will void their insurance. If you have a guarantor be upfront.

You want to ‘lie’ about the tenancy and say your mum is living there (when she’s not) and you aren’t telling the landlord that you are claiming HB. Be honest. Always the best way.

I am struggling to find a landlord willing to accept housing benefit. I will be on universal credit so that is paid monthly and to me. Also, I have enough money to pay the rent upfront due savings as I have only just been made unemployed (blatantly just because I'm pregnant, but they have been quote clever about it). So as I've already got the ball rolling for Universal Credit, my first payment will actually come on time for the 2nd months rent.

This 'arrears' thing isn't a problem, if you actually manage to pay the first month upfront as you'll get paid ready for the next month or if it's going to be late, get a UC Advance. So yes I have thought this out.

I’m a landlord and have a tenant on housing benefit and it’s problematic.

My insurance costs are higher as the tenant isn’t classed as a professional if claiming benefits.

My mortgage choices are limited as above - it’s not viewed as a standard tenancy and it’s viwed as more risk. So I pay more interest.

Rent is paid for the month in advance, but the tenant receives the housing benefit in arrears and it’s every 28 days. So as a landlord I never know when i’m going to get the money. Her HB is also recalculated every quarter so a different amount gets paid.

You’ll need a patient landlord who is happy to calculate the numbers every quarter. Best to be up front.

And if a working tenants circumstances change!? I don't how we can't be classed as professional. What a load of codswallop. When I was earning full time, I would still entitled to a top up of benefits at a £23k salary due to being a single parent! So that makes me unprofessional?

The 28 day rule only applies for actual Housing Benefit. I will be on UC which is totally different and paid monthly.

And what about people on maternity leave!? These people will claim benefits for a certain period of time while they are off work. That's the only reason I'm not working, because I'm expecting a baby.

I’m just being factual and telling you my experience and how it is.

If you claim benefits - no you aren’t classed as professional (or may be unfair, I agree, but that’s how it is). Insurance and mortgage companies charge the owner more.

I do rent out to a HB tenant (I don’t discriminate). It’s difficult as unlike other tenants it costs me more and I loose out on a months rent (as she pays in arrears), payment is always changing and it takes me time to recalculate rent and reconcile monies.

My point is - you talked about putting your mum on the tenancy (when she won’t live there). Then talked about not letting the landlord (you said you hoped you woukd get away with it) know you were HB / UC. That’s not very honest is it? Always better to be honest and upfront.

My tenant is with me and when the council recalculate her payment or pays late i’m happy to work with her. When tenants are deceitful and not honest that’s when trust breaks down and problems occur.

I'm only tempted to not be honest (which isn't usually like me) because I'm struggling to find a landlord willing to have me guarantor or not and I need somewhere, so it's a case of not being honest to save my own skin. I have the deposit and rent upfront, as well as a guarantor and the rent will be paid on time every month but I just cannot seem to find a landlord who will accept a UC top up.