rented for 6 years, now applied for housing benefit - landlord wants to serve notice

[Floria Angel]

Hello All,

 

We have been renting a property for nearly 6 years, always paid our rent by standing order and on time.

Unfortunately, my husband has been laid off recently and to get by until he resecures new employment we have applied for housing benefit.

we filled out the forms and sent the page to our landlord.

Now our landlord left a message on our answer machine, saying that her 'mortgage company' does not except tenants that are on housing benefit. (We have never been on benefits before).

She also claims that she has to serve us a 'section 21' notice (2 months)

 

Now obviously, we cannot afford a house move, have nowhere to move too yet and actually don't want to move. We have 3 children under the age of 10 who go to school here in the village and we hope not to stay on benefits for too long as we are actively seeking re-employment.

 

Can anyone give us some advice? Where do we legally stand with this? As far as we understand is that the landlord will not notice the difference when it comes to her monthly rent as I believe that it is fully covered.

 

We haven't phoned the landlord back yet, and want to be prepared.. so appreciate your help very much!

 

Flo

[MrShed]

Legally - the landlord can absolutely do this I'm afraid.

 

Moreover if the mortgage company doesnt allow HB, she MUST do this.

 

Sorry but there really isnt much of a way around this...

[mariner51]

As MrShed said, but was the ban on claiming HB included in the AST / clearly explained at start of T?

or is it a condition of the mortgage that LL cannot offer property to Ts already claiming HB?

 

I would suggest you arrange to meet LL asap, appreciate her mortgage dilemma and decide whether she is just using it as an excuse.. Perhaps ask her who is her mortgage provider and then do some online research.

 

Technically she has already inadvertantly breached any no HB clause in her mortgage and will do so for a further 2 months so should advise them of the change to your status. She could enquire if an existing recently made redundant T of 6 yrs and now only recently claiming HB, is covered by the clause.

She may be able to negotiate a clause suspension for a 6 month period. if she doesn't want to lose a reliable tenant.

If mortgage/LL provider demands your legal eviction for claiming HB entitlement in this economic downturn they could receive an adverse press.

It is fair enough excluding HB claimants from taking new tenancies & evicting those who fail to maintain rent payments IMO

 

In this case, it is in everyones interest for LL to receive rent and make the mortgage repayments.

Is your partner claiming JSA? contribution or income-based?

What is his chances of new employment in that area?

 

It is possible LLs property insurance also contains a No HB clause.

The other reason that HB claimants are feared is that LHA rates and entitlement can change with govt policy as per Apr 2011.

[Ubiquitious]

Are you required to notify your landlord that you are claiming housing benefit?

 

I made a claim 2 weeks ago and was assured that the council will not inform my landlord nor will I have to tell them. They just asked for a signed copy of my lease.

[mariner51]

I would advise any T to keep LL apprised of any change in circumstance.

If the T can maintain AST condition of paying rent on due date, LL is likely non the wiser.

However many HB claimants expect rent to be covered by Council although any claim can take several weeks to process and may be refused.

HB is always paid 2-4 weeks in arrears and T may not use it to pay rent.

The T can quickly become 2 months behind in due rent and open to a s8 repossession Notice whilst awaiting HB

LL is entitled to direct payment of HB if T is >8wks in arrears.

If HB claim has been submitted I would suggest the T provides the LL with DPA consent form allowing LL to discuss certain aspects of claim with Council.

 

Recently I had a T required to claim HB due to redundany. HB dept refused payment on the basis the AST had expired (beyond fixed term) Only the LL could confirm applicant was still T and the AST was now a Statutory Periodic, a concept alien to HB dept.

[Ubiquitious]

My claim has been approved for my full rent on the basis of an expired (the fixed term has) AST lease. They did require an electric/water/gas bill from the last month to prove I still lived there.

 

Fortunately I am in the position to pay this and next months rent.

 

I can see how a tenant could get into arrears if they are unable to cover those 4 weeks before the first payment + the time taken to complete a claim. My claim again was straight forward and I had all details to hand.

 

My LL is a large commercial company that owns the entire block I live in, and which is considered 'exclusive'. Fortunately I share the flat with another joint tenant so my rent is halved, and again fortunately my half of rent is covered by the LHA.

 

I feel if my landlord had found out about my claim I would have been served notice to leave or I would have had to provide a guarentor. I have no intention in telling them of my claim.

[raydetinu]

The council will not contact LL if you do not want them to.

HB is paid directly to you when approved and you can do what ever you like with it, but is usualy paid to LL to cover the rent or towards it if rent is more than the hb.

In other words the LL need never know if you do not want them to. As long as the rent is paid on time you nothing to worry about.

Some LL like the HB paid direct to them from the council so at least they know they are getting a regular payment.

[mariner51]

The council will not contact LL if you do not want them to.

HB is paid directly to you when approved and you can do what ever you like with it, but (is usualy)

should be

paid to LL to cover the rent or towards it if rent is more than the hb.

In other words the LL need never know if you do not want them to. As long as the rent is paid on time you nothing to worry about.

Some LL (like)

reluctantly accept

the HB paid direct to them from the council so at least they know they are getting a regular payment.

albeit 4 weeks in arrears.

LL can request direct HB payments if T is more than 8 weeks in arrears or a 'vulnerable' T (incapable of managing rent payments?)

 

General observations, consider

1 LL may have mortgage or Ins on property which specifically excludes tenants claiming HB

2 If such exclusion is highlighted in the AST, the T could be in breach of contract, with the Council complicit if they have copy of AST

3 HB is payable to an individual and for a specific address/tenancy, otherwise why require copy of AST?

4 IMO HB should not be transferrable to new address until T can show they have complied with legal requirements to vacate (due Notice) and would remain payable to current LL. The corrollary being the LL cannot effect a s21 unless any deposit is protected, T given prescribed information before s21 Notice served with correct dates specified.

5 IMO DPA does not prevent a Council providing the names & registered addresses only of any HB claimants. This could be restricted online to Council registered LLs and T consent be inc in any HB application (see electoral register reqs)

Best advice is to keep any mortgage provider/LL apprised of reduced finanacial circumstance

 

 

[45002]

The council will not contact LL if you do not want them to.

.

Unfortunately this is incorrect,Councils have a legal duty to protect tax payers money and can by law contact a LL,to confirm the tenant lives there,confirm how much the rent is and so on,but mainly to prevent Fraud...

 

When you claim HB

 

you have to give the LL/agents address on the HB form,if you don't they can refuse to pay HB..

[raydetinu]

true about putting LL name etc. on application, but you also have to give the council permission to contact them!!

Have any of you filled one of these forms out recently, I have for a friend and thats what it says.

[Ubiquitious]

Yes I filled one in last month.

 

They do ask for the Landlord details.

 

The council does not normally contact the LL unless you cannot provide any recent documents showing you still live at the property or a valid original signed lease. They might contact your LL if they believe you to be in arrears or that your LL is a family relation.

 

At my last meeting I asked if they contact my LL as I feared I would be evicted. They said no aslong as the above criteria is met.

 

I have checked my lease and there is no covenant relating to HB.

[raydetinu]

There you go Ubi, all ok then.

[45002]

true about putting LL name etc. on application, but you also have to give the council permission to contact them!!

Have any of you filled one of these forms out recently, I have for a friend and thats what it says.

 

Its true they dont have to contact LL if the tenant has given correct details on HB form and shown council original document,but

 

Councils can and do contact LL/agents without tenant's permission for routine checks,mainly to prevent HB/CT fraud..

Edited March 15, 2011 by 45002