A couple of Housing benefit questions

[socktug]

Hiya, I am currently unemployed. I get Income based JSA and housing benefit for a privately rented house. Where I am now is too big for me as I am a single male in a 3 bed house. it's also far too expensive for me!

 

My girlfriend has just bought a 2 bed flat and is not going to move into it, she is going to rent it to me. Then when I get a job she will move in.

 

Will there be a problem with Housing Benefit as I am living in a house owned by my GF? There will be a normal tennancy agreement, and my HB will be paid to her as rent. I'm not looking to pocket money or anything like that!

 

The other qusetion is. She has took out a normal mortgage for the flat so technically she is not supposed to rent it out as it's not a Buy To Let mortgage. Will HB contact her lender to see if this is a proper BTL mortgage, or will the tennancy agreement be enough, and proof of her ownership be enough? What proof of ownership does she need to provide?

 

A final related question, if I may! As an unemployed single male with no children, would I qualify for a community care grant for help with moving expenses?

 

Thanks a lot for any advice...

[Aviva]

HB are likely to look into the tenancy as you would be renting from your girlfriend. But if you have a tenancy agreement and she can show proof of where she lives now (if needed) then you should be alright (while she is not living there). The fact that she has just bought the property will also go in your favour. They will be looking for a contirved tenancy set up just to get benefit money paid. The problems I have heard about are when someone has been living in a property owned by family and now want to claim HB but they don't have a tenancy agreement to cover then from when they moved in or they have no proof that they have been paying rent. HB need to feel that you would be charged rent whether you were working or not.

 

Don't think that HB contact mortgage companies.

 

Hopefully someone will be along soon with more advice.

[socktug]

Thanks for your reply Aviva.

 

Is there anyone else can help with the other questions please?

[MrShed]

Will there be a problem with Housing Benefit as I am living in a house owned by my GF? There will be a normal tennancy agreement, and my HB will be paid to her as rent. I'm not looking to pocket money or anything like that!

 

Depends on the local authority as far as I am aware, but generally Housing Benefit is NOT claimable when the landlord is a family member or spouse.

 

The other qusetion is. She has took out a normal mortgage for the flat so technically she is not supposed to rent it out as it's not a Buy To Let mortgage. Will HB contact her lender to see if this is a proper BTL mortgage, or will the tennancy agreement be enough, and proof of her ownership be enough? What proof of ownership does she need to provide?

 

HB will not contact her lender to my knowledge, but she runs the risk of repossession if renting out a property without permission from the lender.

 

A "very bad idea" in my opinion.

[Life-Goes-On]

What do you class as a GF?

That would be the factor in deciding if it's allowed.

[socktug]

What do you class as a GF?

That would be the factor in deciding if it's allowed.

 

Ermm, well she's been my partner since february of last year! She won't be living in the house and does have her own place. We aren't engaged or anything like that.

 

As soon as I get a job I'll be cancelling my benefits etc, and she'll be moving in then.

[MrShed]

Shelter England - Housing benefit if renting from family

 

What I can say is that in our local authority, we were in a similar situation not too long ago, and we failed despite numerous attempts to get the LA to pay HB (even though the tenancy was a genuine one).

 

I have to stress that renting out a property without permission from the lender is a bad idea.

[socktug]

Thanks very much for the advice MrShed.

[MrShed]

No probs - good luck.