Renting our Small bungalow to my mother

[Register1]

Hi all,
We are considering buying a small 1 or 2 bedroom bungalow closer to where we live for my mum.
Reason is, my elderly (88) mother is living just over 35 minutes drive away in a housing association bungalow, and getting full rent paid as on benefits, its getting a fair trek every other day or so to visit.
We are thinking buy a 1 or 2 bedroom bungalow in our local area, but not too close.
How would we go about the financial side of renting her our bungalow, so the benefits people pay us?

I understand each borough council have a "cap" at to what level of rent they will pay.

[vikingaero]

I looked into this for my Aunt and ended up buying anyway. She lives there rent free and in effect this is my "pension".

I'm fairly sure that they won't pay housing benefit where the Landlord is a relative.

[bennno]

Her benefit will be reduced if she’s in a family owned property.

[deggles]

Have a Google for "contrived tenancy".

[Register1]

Thanks all,

Looks like I need do more reading up on relatives and rented properties

[Pit Pony]

deggles said:

Have a Google for "contrived tenancy".

Someone I met rented a house to his daughter via a letting agent. I'm not sure if she was on benefits, but he said it was so she couldn't find a reason not to pay the rent, and due to t&c s on the mortgage.

[keebz91]

Unsure if you will be needing a mortgage as part of the purchase but it’s not as straight forward as a standard residential or even Buy To Let mortgage. Let me know if you need any more info.

[austinsmirk]

Shelters website is useful. Potentially yes but it’s a complex answer

She could seek to transfer with her ha to somewhere closer and you can also use websites such as home swapper for her/ you to find other tenants who might do something called a mutual exchange

Or you just buy somewhere

Don’t forget the tax you’ll pay on it too: you might get £500 in which pays £500 mortgage: but you must remove the capital repayment part, eg you can only count the interest payments when filing with hmrc.

Unless of course as ph, you’re buying a £200 k bung for cash.

[reggie82]

austinsmirk said:

Shelters website is useful. Potentially yes but it’s a complex answer

She could seek to transfer with her ha to somewhere closer and you can also use websites such as home swapper for her/ you to find other tenants who might do something called a mutual exchange

Or you just buy somewhere

Don’t forget the tax you’ll pay on it too: you might get £500 in which pays £500 mortgage: but you must remove the capital repayment part, eg you can only count the interest payments when filing with hmrc.

Unless of course as ph, you’re buying a £200 k bung for cash.

.

They changed it last year so you can’t include the interest part either.

[talksthetorque]

You will need an assured shorthold tenancy to get a sniff
Would you be prepared to evict for non payment?

I think the episode of Bread where it was revealed the family rented Grandad's house off him for the benefits, and he rented their house, may not be how it works