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 email@example.com and we can arrange a convenient time to talk.