Non Commercial Tenancy

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  • #22045
    Anonymous
    Guest

    Hi,

    I am hoping for your opinions on this scenario:

    Parents buy flat for son – buy to let mortgage- as they consider that he has learning difficulties but needs his independence – (social services did not consider him to have a problem).

    He was working initially, but made redundant – claimed JSA cont, and HB/CTB – we paid the claim.

    JSA cont stopped and because his capital was £11k he was not entitled to JSA (IB) – we ceased HB/CTB. (however they want is assessed on nil income).

    Parents (Landlords) have written in stating that he has no income, and his capital has reduced to £7,000. They have spent a great deal of their retirement money (bless!!) – and can no longer pay the mortgage without any rent being paid.

    They have stated that they will have to sell the property if they do not get any rent payment soon.

    I do not consider this to be a commercial tenancy – however, how do I stand revising the original decision, as HB/CTB has previously been paid?

    #6476
    Stalbansbenefits
    Participant

    I think you would have extreme difficulty persuading a tribunal it is non-commercial based purely on what you have posted.

    See, for example, CH 296/2004.

    I would pay…

    #6477
    Anonymous
    Guest

    What income would you use?

    Nil – and input the capital?

    Thanks for your reply by the way! 😛

    #6478
    Anonymous
    Guest

    Ellen,

    agree with StAlbans.. unless there’s more than you’ve stated in the 1st post I’d be inclined to pay.

    #6479
    Anonymous
    Guest

    You need grounds to change the original decision and I dont think you have any. Merely disagreeing with the earlier decison is not grounds.

    There are also a number of CD’s re commerciality that go against you and at least one has been reported [R(IS)11/98]

    #6480
    Stalbansbenefits
    Participant

    Yes – I would assess purely on tariff income from capital.

    For completeness sake I might ask the claimant if he has re-applied for Job Seekers Allowance now that his capital has decreased and if not, why not.

    #6481
    Anonymous
    Guest

    Thanks for all your help guys – I will now put the claim into payment. 😛

    #6482
    Anonymous
    Guest

    I agree with Stainsby’s post, but, am more interested in what makes you think this is non-commercial or that he has something other than nil income.

    Without more to go on my decision would be to continue paying; if you have some inkling of other income/non commerciality then you would need to gather evidence/information (maybe through investigation) before deciding to revise/supercede.

    I see no grounds for “ceasing” Hb.

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