New to buy to let/ benefit saying that previous owner can not stay and rent back

[sha]

Hi i have come across this site and was wondering if any one can help with a bit of advice.

My son and i are going into buying a property to rent out, for my old age as now and he in the future.

We have found the property and are set to buy. the person in the property is wanting to stay,( selling due to break up and as children etc and would like to stay in the house )

which we think is a good , as we dont have to go about finding a tenant and we know this person will look after the property etc, she is on benefits etc and as gone to sort this out telling them that she will be selling etc and they have ask her where she will be moving to etc when she as said the people buying the place are willing to rent it back to her they have said she can not do as they will not pay her rent some thing about, how do they know it is not a friend etc buying her place.

I can tell you right here and now we do not know this person, she is very upset about this as she does not want to move, re her children have gone through a lot etc with there dad going of etc.

But we do not want her to move out either as we feel as this as been her home she will look after the property.

So we are looking for a bit of help on this one and any advice for a first time buy to let.

Plus the estate agency as advice to buy another property.

thank you

[Melboy]

Reading through this I suspect if your seller has an asset of a property then the council will say that she has cash money available on selling and would perhaps not meet the housing benefit criteria.

She does not need to sell in order to qualify for housing benefit. She can stay put and claim.

Councils are not keen on what you are proposing and most authorities would turn her request down for the very reasons you have stated.

Your EA is probably right drop this purchase and move on and find something else less complicated.

[sha]

She does meet the housing benefit criteria as when this is sold between her and her ex dont think there will be any money left, i do know she will be looking for renting a place on benefit, as they have just said that they will not paid rent on a property that she as once own, but they will pay on another property so that means she is now looking for a property to rent and we will have to find tenant for property that we are buying we just though to our self it was great that we would not have to find a tenant for the property and would have been easyer for us, knowing that this person so look after the property, so something we though would be easy as now getting a pain.

the other thing is i just been told by someone that her friend try to sell her house back to the council but they could not and the council got them in touch with a housing assoication who bought there house and rented it back to them and its the same area interesting ??? or what

[Melboy]

I can fully understand why housing benefit offices take a strong view on their housing policies and the simple answer is to cut back on housing benefit fraud,

Housing payments to persons who were not entitled to it were endemic during the the past 10 years but a crack down by the DWP and local housing benefit councils has lead to what you are seeing now especially in your area of London and beyond.

[sha]

re first message when i said estate advice to buy another property i meant ie buy two property not just one a because

[Grampa]

You could go to the council offices yourself with the "tenant" and maybe a letter from solicitor explaining that you are buying the property as an investment and are prepared to rent the property to the current owner at the current market rate, on an assured shorthold tenancy and if the council will not grant HB to to the "tenant" you will make it a condition of the sale that you have vacant possession on completion and find someone else to rent it.

Or just go down that route anyway because you will not be referencing the person which comes with a certain risk.

[sha]

thank you all for info, the person is moving out now