landlord will only accept housing benefit with a guarantor

[pinklisar]

Hi all

I'm looking for some advice please, my mum is currently being evicted due to non payment of rent (a long story). we have found her a nice little flat at £80 a week and she is entitled to single persons housing benefit of £80 per week. She currently claims esa as she is on long term sick from her job but hoping to go back at some point. Anyhoo, the landlady will only accept housing benefit with a guarantor from a home owner.

I'm a home owner but my credit is quite bad from defaults and 2 ccjs a few years ago so i'll probably fail, my other half has quite good credit so I was debating asking him to be guarantor.

I did say to my mum that the only way I would do it is if the housing benefit was paid directly to the landlady, but as far as I know it will now be LHA which can only be paid to tenant. I did tell mum if that was the case than it would have to go into my bank account so I could pay it directly to the landlady.

What would be the reasons for the landlady needing a guarantor? If the housing benefit covers the rent than is that not guarantee enough? And why would a credit check need to done on the tenant and guarantor?

Me and my mum both have up to date credit reports from experian, could we just give her those instead of forking out £50 for a report we already have?

 

many thanks

Lisa

[Steve__M]

Housing benefit is not guaranteed. Rates can go up or down. Entitlements can change. People can make erroneous claims. etc. And as you say, payment will be made to tenant who may need to spend it on something else!

 

If LL is not using an agent then maybe she will accept your experian report. But it's up to her. Credit checks may be a requirement for her insurance for example.

[MrShed]

Unfortunately, there is good reason for this. I say unfortunate as it unilaterally dumps all HB tenants into one pot.

 

As the tenant themselves pays either nothing or a minimal amount towards the property, there can be a tendancy for the property not to be treated in the same way as if the tenant had a real financial vested interest.

 

Remember that the rent is only one part of this - the landlord is also entrusting a 6 figure sum asset into the care of someone, who can (if they so wished) run up massive repair bills during their tenancy.

[pinklisar]

it is a bit of a pain, especially as mum is only getting housing benefit while she is off work sick, I even offered to repair the damaged wall paper and re paint before mum moved in so it was in a good state of repair for her, we'll send off the application form and see how it goes from there

thanks for your help guys x

[mariner51]

Having a property-owning G for a HB claimant, or any other T, is a good idea IMO.

It means LL can recover T unpaid damages and rent arrears from G eventually by placing a charge on G property, payable when sold. maybe several years ahead but better than T disappearing without hope. If G is employed there is also the poss of an attachment of earnings order on the G.

LHA payment rules have recently been relaxed, so I can see no reason why LHA payments should not be paid direct to LL if T & LL agree.

a G should be aware of their committment and ensure T does not default.

When OPs mother returns to employment Gs exposure should decrease