Dear David.
Here at Golden Lane Housing (Mencap’s housing arm) we have lots of experience supporting trusts rent to their loved ones. Over the years this has involved us supporting directly - through leasing trust properties - or indirectly through general advice. Around 6 years ago we jointly funded a family trust to successfully appeal the decision of the Housing Benefit not to pay their related tenant’s rent.
From that appeal we learnt what trusts needed to do to show a tenancy is a commercial arrangement and is not considered contrived for the purposes of Housing Benefit. Evidence can include:
-A commercial agreement, such as a Tenancy Agreement document, a Rent Book, or bank statements showing evidence of regular rent payments.
- Mortgage statements from the landlord (if exists) showing that payments are needed to be met by a rent payment.
- Rent covers costs of management, maintenance, insurance etc
- The Landlord arranges for tenant to be given a tenancy, which is then dealt with on a regular basis by a Managing Agent or Housing Association.
- Evidence that there is no other suitable accommodation, if the tenant in question is disabled.
- Property not left empty for significant time
I am more than happy to provide further advice if you would like to contact me at john.verge@glh.org.uk and we can arrange a convenient time to talk.
Kind regards
John