Sub tenant, Non-dep or liable person?

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  • #22763
    mew
    Participant

    Hello

    One of my colleagues asked gave me this scenario this morning and asked my opinion. I’m not 100% sure which way to go so was hoping a few of you out there could give me yours.

    Situation is: Son has the tenancy for property. Mother moves in to help out with rent but the landlord will not put her name on the tenancy. Both have applied for HB stating that they pay half of the rent each. Should we treat her as a sub tenant, non-dep or treat her as liable for 50%?

    If we treat her as a sub-tenant the income he receives from her will be reported to the DWP who will probably decrease his IS. He will still be entitled to maximum HB for the full rent but will have less income. She won’t be able to claim HB because she is living with close relative.

    Or

    Treat her as a non-dep. Non-dep deduction made. Her not eligible to claim.

    Or

    Can we treat her as if she is liable to make half of the payments to enable her to stay in the accommodation under Reg 8(1)(c) as she has assumed that she has responsibility to pay the landlord?

    As far as I am aware she gives her son her half and he pays over the full amount to the landlord.

    Help!!!!!
    😕

    #9485
    jerikaz
    Participant

    I would treat her as a non dep – she has no liability to pay rent. She is not a subtenant as she does not have a commercial arrnagement with her son, it is a personal arrangment between themselves.

    #9486
    andyrichards
    Participant

    I would treat her as a non-dep too. Unless she is working and her income is at the high end of the range, that’s actually a pretty good outcome for the son if she is actually handing over half the rent!

    #9487
    mew
    Participant

    for your replies.

    I agree – non-dep

    #9488
    Anonymous
    Guest

    Non-dependant is the obvious choice, but if you wanted to be nice I see no reason why you could not apply reg 8(1)(c) to the HBR 2006, as you have considered.

    #9489
    Anonymous
    Guest

    Non-dep, she has no liability to pay rent.

    #9490
    seanosul
    Participant

    [quote:cf0c8e261f=”mew”]Hello

    As far as I am aware she gives her son her half and he pays over the full amount to the landlord.

    [/quote:cf0c8e261f]

    Who and how she pays makes a difference. If she pays the landlord her half of the rent, the acceptance of that payment actually creates a liability, despite there being no tenancy agreement in her name, in which case she can be treated as a joint tenant, even if the landlord will not put her name on the tenancy agreement.

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