Renting with friends?

[oxcat1]

Hello,

I currently live in a rented property with my husband. We have a combined income of £18,000 and I receive DLA, and as a couple, working tax credit because of my own disabilities. We have no children, unfortunately.

Our friend has recently separated from her husband, and lives in a rented flat with her daughter. She is financially independent and receives no benefits other than child benefits.

We are considering combining forces and moving into one larger rented property for us all, to enable me to receive additional help with my poor health and disabilities, and her with her childcare and general companionship.

Are there any immediate financial/benefits considerations? How do we ensure that we continue to be considered financially independent of each other for the sake of benefits calculations? Would this be classified as a property of multiple occupancy, or would some sort of subletting be preferable?

Obviously we haven't got as far as the minutiae of who buys the toilet roll!

Any thoughts, advice and considerations gratefully received - thank you!

The immediate financial benefit is that it should cost less to pool your resources and pay for one lot of utilities and rent etc than to keep multiple households running. So, even if you all individually lose out a little in the transition, you could end up better off ultimately.

I would suggest that you are all named as tenants rather than two of you being the principle tenants and subletting to the third. This is for everyone's protection. Friends can easily fall out and if one disappears the others are left picking up the tab.

The effect on benefits I'd suggest you run through something like the benefits checker at www.turn2us.org.uk. There is the facility to say that you live with someone who is not a dependent.