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Housing benefit for my parent (I'm the landlord)

22 replies

helpsoughtplease · 16/07/2024 16:17

Name changing as it could be outing but looking for constructive advice.

My elderly dad (87) fell last year, so badly that he ended up in hospital for a week with concussion and multiple rib fractures. Since then he has been housebound and we found a local carer (private) who goes in a couple of times in between me helping out.

This carer has been so helpful and suggested that he should be seeking Attendance Allowance (we applied and this has been approved and is being paid) and he's also now receiving care from social care via a care agency.

Our private carer also suggested that we apply for housing benefit. The context is that my father has rented from a property I own for about 10 years now (it's in my name only). We have only charged a low rent, almost but not quite covering our interest-only mortgage payments which were very low during this time. My father does have some private pensions which meant he could pay me this and still have enough left for bills and food.

However, since we had to remortgage at the end of last year, the mortgage payments have increased by £1,000 and we simply can't afford to cover the difference. The usual rent in the area my father lives is £1,700 pcm for a 2-bed.

He can't move in with us as we have already 2 of our children sharing a room with no spare room or study even.

Carer said that he should be entitled to housing benefit as he has no savings to speak of (probably less than £3k).

Looking at the housing benefit form it does say you should state if landlord is related (as in our case as I'm the landlord but also his daughter) but carer said that as long as you have all the relevant documentation you should be entitled to some housing benefit as they base it on the usual rents for accommodation in the area vs my dad's income (there is currently a shortfall of at least £500).

Does anyone else have any advice or experience of similar situations?

OP posts:
AgreeableDragon · 16/07/2024 16:38

I would not be relyling on a carer for advice on claiming benefits.
They might be good at sign posting you, but get proper advice from Citizens Advice or another advice provider before claiming.

skyeisthelimit · 16/07/2024 16:39

I believe that you need to charge market rent and have a proper Tenancy Agreement, but the Shelter advice is very helpful usually.

helpsoughtplease · 16/07/2024 16:41

Thanks, there are a tenancy agreement, deposit protection, gas certificate all in place.

OP posts:
LiterallyOnFire · 16/07/2024 16:41

Each LA has their own policy on relative/landlords. You could ask or you could simply encourage him to claim.

If he's been paying rent for ten years already, without assistance, it's certainly not going to look like a contrived tenancy.

helpsoughtplease · 16/07/2024 17:36

Thanks very helpful advice.

OP posts:
Mumski45 · 17/07/2024 07:11

I would be a little careful on this as it may look contrived if you put the rent up at the same time as applying for housing benefit. No idea what the rules are in your area but I do know that letting to your own family using housing benefit can be tricky.

sugarisbad · 17/07/2024 07:15

The issue is more likely to be with the mortgage company ,as many of them don't allow a family member to become a tenant .

Wisterical · 17/07/2024 07:22

Nice. You want the state to buy your second home for you.

Theunamedcat · 17/07/2024 07:33

Wisterical · 17/07/2024 07:22

Nice. You want the state to buy your second home for you.

Interest only

allhailtheeyeballsinthesky · 17/07/2024 08:06

You will both have to attend a regulation 9 interview separately at the same time. They will ask questions to determine whether the tenancy is contrived, and make a decision based on the answers they get from both of you.

Jmaho · 17/07/2024 08:16

Do your mortgage company know you are letting the property to your elderly father?

Changingplace · 17/07/2024 08:18

Won’t you be better off looking into a sheltered accommodation flat for your dad where he has more support, and applying for housing benefits to cover that?

I think many mortgage providers have issue with tenants being family, do you have a regulated buy to let mortgage? Putting up the rent by £1,000 just before you apply for housing benefits will surely look contrived.

Sunshineandrainbow · 17/07/2024 08:18

I would do a rough calculation on entitled to. Com to see if he is entitled to HB with his private pensions.

CedarFence · 17/07/2024 08:47

Wisterical · 17/07/2024 07:22

Nice. You want the state to buy your second home for you.

Oh FFS.

Currently his rent does not cover the mortgage.

He does not own his own place: he would have been paying higher rent elsewhere for 10 years and probably claiming HB earlier.

He has £3k savings and no property of his own. Living in the OP’s rental is probably helping to keep him out of a state-paid care home.

Unless you are lucky enough to get LA or HA accommodation anyone in rental is paying someone else’s mortgage.

Whatevershallidowithmylife · 17/07/2024 09:09

In a similar position. We weren’t aware when we bought a house for our DM to live in that HB wouldn’t be paid. Council did relent after our arguments regarding the neighbouring houses being turned into halfway houses, constant vandalism of property, DM ill health and not least the fact she desperately wanted to downsize from a large 3 bedroom house but they couldn’t do this as she was adequately housed!! I think since he’s been there that long HB will be paid.

helpsoughtplease · 17/07/2024 10:35

The rent went up when the mortgage interest rates went up but he's fallen behind on payments so already owe me money.

OP posts:
Missrosie123 · 17/07/2024 11:24

Hi I have just gone through a similar situation. The housing benefit was approved. We had to fill in a couple of forms, provide a copy of the tenancy agreement. Proof that rent had been paid - for us it was 3 years. For our local authority the benefit is based on one bedroom (the house is 3). The entitlement was about £550. We charge below market rate - amount to cover interest on mortgage. I set all of this out and the basis for us being in this situation. The forms asked if we would evict if they could not pay and I confirmed we would have no choice and would need to take legal advice. Be factual and commercial in your answers.

helpsoughtplease · 17/07/2024 12:06

Missrosie123 · 17/07/2024 11:24

Hi I have just gone through a similar situation. The housing benefit was approved. We had to fill in a couple of forms, provide a copy of the tenancy agreement. Proof that rent had been paid - for us it was 3 years. For our local authority the benefit is based on one bedroom (the house is 3). The entitlement was about £550. We charge below market rate - amount to cover interest on mortgage. I set all of this out and the basis for us being in this situation. The forms asked if we would evict if they could not pay and I confirmed we would have no choice and would need to take legal advice. Be factual and commercial in your answers.

Thank you so much!

OP posts:
OneForTheRoadThen · 17/07/2024 12:53

helpsoughtplease · 17/07/2024 10:35

The rent went up when the mortgage interest rates went up but he's fallen behind on payments so already owe me money.

I have been through this situation too. This is one of the things that will count against you unless you have shown you'd act in the same way as a landlord who is not related to the tenant and start the ball rolling against his non-payment. Basically he can't have any favourable terms compared to a non-related tenant. I had to send in a year's worth of bank statements showing I'd paid the agreed rent for a year.

Sprinkles211 · 17/07/2024 18:00

You would need a buy to let mortgage and Insurance for a tenant also

shuffleofftobuffalo · 17/07/2024 18:07

I reckon it will be fine as you've had a formal agreement in place for years and presumably your father can evidence payment over a long time.

I'd get someone else to help him make the claim though rather than doing it yourself.

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