Universal Credit - Renting From Family

[Nottoosure1]

Hello

Around a year ago I moved into a home owned by my mum’s ex husband (not my father). I have a serious mental illness (Paranoid Schizophrenia) and claim benefits (UC LCWRA and PIP) as I can’t work at the moment.

Due to my illness I have been really irresponsible with money at times, which means my credit score is in the bin. This, coupled with the fact I claim benefits to survive means no landlord would touch me.

My mum’s ex husband, who has been renting the property out for over 20 years allowed me to rent his property and the rent is paid directly to him via UC as I’m really bad with finances when I’m unwell.

I’ve noticed a lot of talk at the minute about UC reviews. I am really worried as I’ve heard you have to submit bank statements as part of the review. My landlord/mum’s ex husband has lent me money over the past few months.

• He lent me £600 to pay my council tax and fines when I was at the point of bailiffs attending my home.
• He lent me £100 for my mother’s 60th birthday present.
• He sent me £50 for a birthday present from him to my son (he sees my son occasionally).

I have a full tenancy agreement, gas safety certificates etc and I paid a deposit before I moved into the property.

Are UC likely to say this is a contrived tenancy due to my landlord lending me money on 3 occasions? If I lose my housing element my landlord will evict me as he is running a business and can’t afford to let me live here for free. If this happens I am going to be homeless as no one else will touch me.

TIA

It’s how it’ll look in paper OP, I’d be very careful with this arrangement
do you qualify or on list for social housing?

I don’t think I qualify for social housing as I don’t have custody of my children due to my mental health.

Nah you will be fine, the £600 you will be able to evidence he gave you the money and you paid the bill. That's allowed, but for future it may be better for him to pay the bill direct. To make it easier ask him to give cash or a present for your sons birthday

Why are you paying council tax if you are on benefits? Are they not covered by the council tax reduction scheme? Or alternatively you could get an exemption, by providing evidence of your severe mental illness.

Also, you can get cheaper water rates if you are on a low income. And also broadband on a social tariff.

You need to find a local free debt advice service, and ask for support. Citizens advice can help with the housing element of UC.

The rules are more strict, but that doesn't mean you can't still get the housing element. If you have a tenancy, and he was renting the house out previously then it isn't that the arrangement is to gain money from the state. Citizens Advice or possibly the local Mind may be able to offer support with it.

I get a council tax reduction but I still have to pay around £300 per year. I hadn’t paid my council tax because I’d become very unwell and it was at the point that bailiffs were going to attend the property.

The other £300 was for parking fines I had when I was driving that had again escalated to the point of bailiffs. I was on the brink of suicide so he helped me out.

I already have the tenancy in place and I have been in the property for a year with the rent being paid by UC. I’m worried that if I come up for review they will think it’s a ‘contrived tenancy’ I will become evicted, have nowhere to live and asked to pay back thousands.

One of the main symptoms of my illness is extreme paranoia and I feel so poorly.

Oh OP I think it could just be your Mh Talking.
I hope you’re okay, it sounds a desperate situation. Sending a hug

@Nottoosure1 I can't answer your question but what I can say is that please have a conversation with your bank as they can be very helpful and supportive.

What conversation with the bank?

I doubt it would be considered a contrived tenancy when your landlord has been previously renting the property out - and he is also not your relative (being ex-husband of your mum).

He and my mum have been divorced years (I could even provide the documents). The property has been rented out to numerous other tenants over a 20 year period and there is no mortgage on the property so that isn’t an issue in terms of renting to people he knows.

I’m just in a complete blind panic I’m going to end up homeless and in thousands of pounds worth of debt!

You are not the sort of person they are looking for @Nottoosure1 . You have a valid tenancy. However, it's best that if your landlord wants to help you financially, that he makes a direct payment on your behalf, rather than giving you the money, because that will save any confusion. Keep all the paperwork in case you need it. I hope things improve for you.

@Nottoosure1 its not a contrived tenancy. You’re not even related to him. You will be fine.

Can he route the payments via your mother?

Yes and if I needed a payment off him in the future that’s what I would do.

I’m just really worried about these 3 payments and UC thinking it’s dodgy when it’s just he’s helped me out of a really bad situation. UC do know about my illness and that I struggle with money as my rent is paid direct to my landlord, it was the only way he was willing to rent to me as he knew I would struggle to pay when unwell.