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tikkat3
Starting Member
3 Posts |
 Posted - 13 August 2009 : 10:52:37
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I am about to go bankrupt within the next 2 weeks. What are the likely rules regarding housing allowance given my situation?
I currently pay £800 a month rent and £350 in utilities and council tax. However, my landlady has turned into my future wife! We are recently engaged and I am still paying the above to her. She has a mortgage on her house in her sole name and the house is currently in negative equity. She is also struggling financially and the reason for renting originally was so that she could cover the mortgage.
Given the change in my circumstances what is likely to be allowed to me? If my rental sum is not allowed she will also be facing bankruptcy in the not too distant future. The house is not suitable for a further letting due to lack of space.
Any advice of thoughts would be much appreciated! |
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gettingoutofdebt
forum expert
2418 Posts |
Posted - 13 August 2009 : 12:39:58
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Hi,
Do you have a rental agreement with your future wife?
If you have a rental agreement then she is still your landlady and there is no problem paying the rent/bills as this would just be rental for the property.
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tikkat3
Starting Member
3 Posts |
Posted - 13 August 2009 : 13:53:58
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Yes I do. It is one the the LawPack prepared ones from WH Smith.
Would the OR no look at the arrangement as being one of avoidance or at best treat me as a lodger? At the moment my agreement means that I am effectively covering all household bills and her mortgage payment (as was her idea in getting a tenant in the first place!). |
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gettingoutofdebt
forum expert
2418 Posts |
Posted - 13 August 2009 : 15:06:05
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If you have a tenancy agreement then you are a tenant so you are renting the property. Paying the rent and bills for your rental/bills would just be the same as it is with me renting my property.
On the SOA forms there is a section for you to list other people who live at the same property. You could put your future wife's details in this section and then list the rent, etc. in your outgoings. The OR would probably want to know if your future wife was also contributing to the mortgage but you could just say that you don't know any of the mortgage details and this is the amount that you have agreed to pay as per the rental agreement.
It may also be easier if you don't mention that your landlady is your future wife as this may cause questions about whether you are paying all of the bills for her, etc.
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tikkat3
Starting Member
3 Posts |
Posted - 13 August 2009 : 15:20:19
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| Sensible advice, thank you. Can you forsee difficulties a few months down the line when we are married (planned for December/January)? The change in circumstances will then need to be declared to the OR as there would then be 2 adults and her child in the household (as there already is). I had been looking to try to claim for the household expenses for all three of us, as this is something I am effectively helping with now. |
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debtinfo
forum expert
2826 Posts |
Posted - 13 August 2009 : 21:20:18
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| I think that the OR would see this as you living together despite the T/A and would treat you the same as any co-habiting couple. I think not mentioning it is only going to store up trouble later |
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RHB
Senior Member
1159 Posts |
Posted - 14 August 2009 : 09:10:56
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| 800 pounds & 350 bills is very steep for a single person so I suppose the OR will ask you about this depending what area of the country you live in. Does she live there with you now? |
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gettingoutofdebt
forum expert
2418 Posts |
Posted - 14 August 2009 : 10:14:27
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£800 isn't that expensive depending on where you live. I used to live in SE England (Hants) and a semi decent 1 bed flat would cost £650. For £800 you would get an 'average' 2 bed house so it really depends upon the area you live. If £800 is a lot more than the 'normal' rent in that area then the OR may question it.
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Edited by - gettingoutofdebt on 14 August 2009 10:15:32 |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 14 August 2009 : 11:32:30
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I live in Surrey and a 1 bedroom maisonette in my road is £700-£800 with bills on top!
Tomorrow is a mystery, yesterday is history, today is the present, a gift to make the most of.
View my blog at http://skippy13.blogs.bankruptcyhelp.org.uk/
25 IPA payments made, 11 to go - on the home straight! |
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Jane.l
Average Member
511 Posts |
Posted - 14 August 2009 : 11:50:19
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I am almost embarrassed to type my rent, I am "oop north" and pay £320 per calender month for a 3 bed semi on outskirts of town with 2 huge gardens and overlooking a park This is a council house though, in our private rented before we got this, we were paying £575 for a tiny 3 bed semi. but compare that to our old mortgaged house, a 3 bed terraced house (needing work) with a back yard and no parking for £1300 per month, I am almost glad I went bankrupt |
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Housing
