Does anyone know what happens after moving in to a property where the existing tenant is receiving housing benefit, and moving a partner in causes that benefit to cease?
I'm moving in to my partners place, and she is on housing benefit. This is paid in arrears, and means that automatically and immediately we would be in arrears. Is the landlord/letting agent likely to insist on having it paid? That would be really tight.
You should go to the local housing authority and explain what you are proposing to do. They should be able to help and advise what would happen. You should also investigate tax credits if your partner is going to lose her benefits.
It's going to be tight, as apparently it can take 4 - 6 weeks to resolve a change of circumstances on tax credits. We'll certain be on the phone to update all the means tested incomes to ensure that we are all above board.
We'll be making an appointment to see the local housing people as soon as possible.
If there are overlap issues, have a word with your IP. They may sanction a short payment break to avoid problems with the landlord and the arrears could be cleared when the tax credit entitlement has been finalised.
Spoke with IP. Ok for a payment break, providing it's in writing from the letting agent or landlord. But there is a complication. Because housing benefit is paid in arrears, when the referencing agency calls the current landlord, he'll say yes there are arrears, despite having no option on this. Therefore the referencing fails, and we lose nearly £200 referencing fee. We've got to find out what the landlord will say when asked about arrears. If he answers no then we're fine.
Yet another complication to make it all so exciting.
Rather than asking if there are arrears explain the situation to the agency and they could rephrase the question. If for example they asked 'If you are happy with the conduct of the tenants and would recommend them to another landlord' this could be answered truthfully. Alternatively, ask the landlord to qualify any statement he gives by saying 'the rent was payable each month in arrears and has been paid without fail each month'
I explained it all to the letting agent. They were at pains to highlight the bold writing on the application form that 'any current rent arrears will fail the referencing, and the fee will be non-refundable'.
We've dealt with the arrears now anyway. We used what we had in savings (I had a <£500 deposit from my flat returned to me some weeks ago, which my IP allowed me to keep on the basis that it was mine anyway i.e. money already spent and not therefore a windfall) and what my partner had in recent payments to her accounts, to pay off the arrears, so we are now actually all square and settled, with some left over to help towards the deposit. Things were looking up last night.....
Then a new problem has come to light. My partner had charging orders against her former matrimonial home. These were all settled, but none of the CCJs on the credit agencies have been updated to show satisfied. She has written confirmation from all but 1. It was definitely satisfied because there was more the sufficient equity to cover everything. However it was a traumatic period for her, and she cannot remember if the letter was ever received or not.
We're very concerned that these will fail the referencing for us and waste nearly £200. I've contacted the letting agent to explain the situation.
We've taken a 'all cards on the table' approach and this has been received very favorably, including not having to find months and months of advanced rent.
