May, 2017


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  1. #11
    Join Date
    Feb 2014


    It is possible to let a property to a relative and for them to receive housing benefit.
    The local authority have to agree, and are, it seems, more sympathetic with retired people than other benefits recipients.

    The gift of the property is an issue, because that isn't allowed - the person making the gift has made themselves deliberately homeless and has deliberately forgone something that they could have used to support themselves.
    So means tested benefits will be limited or unavailable - as noted above, google "deprivation of capital"

    I don't know any BTL lender who would entertain this arrangement.
    Similarly insurance is going to be an issue.
    When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
    Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

  2. #12
    Join Date
    Jun 2016


    He has almost no chance to get HB because the tenancy will be considered contrived on the basis that you bought the property for the purpose of renting it to your uncle. If you've owned the property for some time, rented it for some time on a commercial basis, then it happened that your uncle wanted to rent from you, with a proper ast and market value rent, he might have had a chance. As it is he really has no hope.

    Also many BTL mortgages prohibit renting to family.

  3. #13


    Whilst internet forums have a tendency to drift off towards hyperbole, on this occasion I agree with all the other respondents. This ticks all the boxes of fraud - don't do it.

  4. #14
    Join Date
    Mar 2009


    Indeed: Get the place, rent it to someone else for 6 months, normal terms, then evict. THEN let to relative, normal commercial tenancy & price & you would be then OK.
    I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

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