How much is the rent

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  • #39884
    simonh
    Participant

    Someone has claimed HB stating that their rent is £850.00 pcm. However because they couldn’t afford this it has been agreed that they will pay £3,000 in advance for a 12 month tenancy (which they borrowed) and then £600 pcm.

    However the tenancy agreement actually says:
    ‘£600 pcm (the rent) (subject as hereinafter provided)for every month of the term of this tenancy payable in advance on the first day of each month and the sum of 33000 to be paid in advance to make up the outstanding monthly overall income’

    Do people think that the contractual rent is £600 or £850?

    #113817
    Kay_Tade
    Participant

    £33,000? I’m sure that’s a typo. Well, if the agreement states £600 pcm then that’s what it is. Forget what’s on the form.

    #113818
    simonh
    Participant

    You spotted my deliberate mistake for the day! It should say £3,000.

    So if the rent is only £600, what is the £3,000 treated as? I don’t think it can be a deposit as a seperate payment for this is referred to elsewhere.

    #113820
    Kevin D
    Participant

    The sums indicate the rent is in fact £850pcm.

    £3,000 over 12 months is £250pcm. £600 + £250 = £850. Depending on the wording of the agreement, it seems to be a case of partial rent in advance. So long as it’s “rent” (i.e. eligible under HBR 12), it doesn’t matter that it’s paid in advance.

    #113824
    simonh
    Participant

    This is the dilemma. The intention was clearly to charge £850.00. However the actual tenancy states £600 rent and then £3,000 over the term of the tenancy to make up the outstanding income.

    I just spoken to one of our solicitors who is of the opinion that because they have used the word income rather than rent, this £3,000 doesn’t form part of the monthly rent.

    #113825
    Kay_Tade
    Participant

    [quote=Kevin D]The sums indicate the rent is in fact £850pcm.[quote]

    Agree with Kevin on the issue of the deposit but not on the amount of rent. The tenancy states £600., anything else is speculation unless the L/L expressly states so or changes the amount retro or otherwise.

    Edited : not quite sure how the post seemed to turn out as a quote!!

    #113828
    liffe
    Participant

    (1) Subject to the following provisions of this regulation, the payments in respect of which housing benefit is payable in the form of a rent rebate or allowance are the following periodical payments which a person is liable to make in respect of the dwelling which he occupies as his home—
    (a) payments of, or by way of, rent;
    (b) payments in respect of a licence or permission to occupy the dwelling;
    (c) payments by way of mesne profits or, in Scotland, violent profits;
    (d) payments in respect of, or in consequence of, use and occupation of the dwelling;

    It seems to me that the £3000.00 represents a payment in respect of , or in consequence of, use and occupation of the dwelling so how you apportion that over the year could be flexible, at the end of the day, the contractual rent is that overall figure expressed on the tenancy agreement. In any event it could be viewed as a periodical payment even though the first installment is higher than the rest of the monthly payments… I think :~

    #113834
    Anonymous
    Guest

    Surprised at the differing opinions here, doesn’t matter what you call it, its all payments in respect of occupation of the property. £850 per month.

    #113835
    simonh
    Participant

    Thanks for the comments. I had overlooked 12(10(d) totally and think that covers it nicely.

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