I am selling my property to a man who is going to let it back to me. I am not related to this man in any way, he is a genuine buyer who found my property through the estate agent. I have been advised I may not be able to claim Housing Benefit because I have owned the home I am now a tenant in within the last five years.
Does anyone know if this is true?
LuddyLudds Thurs 24/04/08 18:02
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yes i think it is. what you have done is sold your house to an estate agent who are renting it back to you.
you would have made money from the sale which should cover the rent till you die.
stupid idea! dont sell your home and then rent it back, try and remortgae if you wanna release cash!
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Yes - the government doesn't take kindly to this sort of 'waste of assets' and assuming you will make a profit from the sale, you won't be enttitled to any means tested benefit if you have capital in excess of the current threshold.
This would apply even if you sold the house and rented a totally different house, unconnected to the sale.
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Question Author
Just thought I'd post to say that actually you're both not quite correct and I have not got the final answer. As I had no choice to sell my house (with no equity in it - very presumptious of you) because I couldn't financially afford to keep it, I am able to claim housing benefit. Also, I did not sell it to the Estate Agent!! Read the question! I sold it to a man who bought it through the estate agent - if he was family/friend why would we have done that?!!
Thanks anyway. Great website in general, just a shame they got it wrong on this occasion!
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Wrong answer because of duff information in the question - not nearly enough information.
It must have been a very bad buy to lose money over the last five years.
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Don't know the answer, but can't see why you shouldn't be able to claim. No equity, so no asset involved. You've paid back your mortgage or whatever and now you have no money. If you rented elsewhere you'd be entitled to benefit. Just 'cos it's your old address, I can't see why it makes a difference. (However, there may be a legal technicality I'm not aware of, but I suspect it's to do with having equity in the property.) As someone else suggested, ask a law expert.
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Ludds
This website isn't built around giving insufficient information in a question and then criticising the answers given.
The question you should be asking is "what guarantees does this buyer give me?" I suspect that he has given you a 6 or 12 month AST which won't be renewed and you'll be turfed out at the end of this initial contract. This from the information given sounds like the sale and leaseback schemes that have come in for heavy (and justified) criticism recently.
Great website in general. Just a shame about some of the questions.
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