Can I get Housing benefit to buy a small plot and a shipping container to live there?

[Homeless]

Can I get Housing benefit to buy a small plot of land and a container to live there?

I am a homeless sleeping in the streets. I am entitled for housing benefit.

But my question is this:

Can I get housing benefit to buy a small plot of land (freehold £5000) and to buy a shipping container (£3000) to live there in the container on the plot? = £8-10,000 plus the cost for the connection of the water, electricity and sewerage system?


(A live-work-studio made in a shipping container probably is only one way for me because I am a musician and it is not possible to make music in a flat because the noise. I do not want to rent a container because I will have to put there big money for a soundproofing but no one wants to give me the tenancy contract for at least 10 years. My music project will take at least 10 years.)

Many thanks

[lgfa92]

Housing Benefit will not cover costs to buy land nor would it help with costs afterwards - Housing Benefit is available only to assist in paying rent.

[Homeless]

Quotation:

"...Or you can find down payment assistance programs that could allow you to buy a home with no money down. USDA and VA loans require zero down payment. FHA and Conventional loans need just 3.5% or less down, but 100% of the down payment can be a gift. This would make it possible to buy a house with no money down..."


Quotation:

"...To buy a home you need a deposit you have saved yourself of at least 5% of the purchase price. The equity loan from the government can cover up to 20% of the price, and a Help to Buy mortgage covers the rest. ... You could get a 20% equity loan of £40,000.27 Nov 2018..."


You know, I just am looking for some legal ideas like these two examples above. Do you have some such ideas?

[lgfa92]

It's unlikely you'd get a mortgage on a 'non-standard* property, mortgage companies tend not to like anything that's not a typical house construction.

The other issue is what money would you pay the mortgage with? Housing benefit won't pay it.

[Homeless]

And what about this idea:

I will get someone who will buy a land, a shipping container, etc. all for the total cost £10,000.00. After that I will make this tenancy agreement where will be written this:

"After the tenant will pay the rent of the total amount £10,000.00 the tenant will become the owner of the land and the shipping container and of everything what is on the land."

Will the provider of the Housing benefit agree with such this tenancy agreement? Generally, will this be legally correct (clean)?

[lgfa92]

I would imagine they'll refuse on the basis it appears it may have been created to enable a housing benefit claim to be made. Most agreements in those circumstances are not eligible for housing benefit.

[Homeless]

And what about two contracts?:

1) A standard tenancy agreement (which I will show them when I will be asking for Housing benefit)

2) A contract between me and the owner (who will buy a land and container). This contract I will not show when I will be asking for Housing benefit. In this contract will be written this:


A contract between the owner and the tenant (me):

"...The tenant will become the owner of the land and the shipping container AUTOMATICALLY after the tenant pays to the owner the total amount £10,000.00 with a form monthly payment any amount which will be considered also as a rent payment.."

Is this way legally correct (clean)?

[lgfa92]

You would have to run it past the housing benefit team - it's a few years since I last had any housing benefit training but you have to be very careful with the agreements as concealing (even if inadvertent) any details regarding agreements for the property can cause issues if they come to light.I would expect the first thing they would say is that the second contract, taken in conjunction with the first, would suggest creation of a tenancy to claim housing benefit (which is usually declined in those cases) but only they can say for certain whether or not they'd push it that far.

[Amethyst]

HB cannot be claimed by those who own their own property - you will own the land and own the 'property' ( you would require planning permission as you intend it to be residential and permanent - and it would be assessed for council tax ) If you try this false tenancy ( as it would be false, you would own the property and have no need to pay rent ) to obtain HB it will draw attention to your land and living arrangements etc. Your plan b may be an option if it genuinely was to be owned by a third party, was a genuine rent that was paid to the landlord and your tenancy had a right to buy clause. However If you are in a position to buy outright then you do not need HB to pay rent.

There is another thread on here somewhere regarding arguing council tax etc for a caravan ( or maybe a shed ) on some land where he was arguing he only slept there to tend his crops ( or something ) but had the field as his address ... someone else will probably remember it better to be able to find it.

[Amethyst]

There's also savings / equity limits - although that might have changed - I know I couldn't get HB to rent anywhere because I had over £16k share of equity sitting in the house I owned that my husband was living in... but I'm not up to date on those rules.

[Homeless]

HB cannot be claimed by those who own their own property - you will own the land and own the 'property'.

Noooooo.
On that day when I will be asking for the Housing benefit, I will NOT be the owner. I will be a standard tenant.

And, in a few years, later, when the owner will give me the property as a gift, for free, this fact does not do anything with any Housing benefit. Because any one may give anything to any one, musn't he/she?????

[lgfa92]

Noooooo.
On that day when I will be asking for the Housing benefit, I will NOT be the owner. I will be a standard tenant.

And, in a few years, later, when the owner will give me the property as a gift, for free, this fact does not do anything with any Housing benefit. Because any one may give anything to any one, musn't he/she?????

A person may give a gift but if the original agreement was designed to take advantage of the HB system then they can still refuse to pay. The system is designed to try and prevent any form of circumvention - i.e. you are effectively paying for a property to be purchased on your behalf by way of Housing Benefit with the intention that it will simply be transferred in to your name at a date in the future.

[Amethyst]

In that case you just want to be asking housing benefit whether renting a studio a.k.a. shipping container would qualify for housing benefit as a first step... in theory.

[Homeless]

A person may give a gift but if the original agreement was designed to take advantage of the HB system then they can still refuse to pay.

Nooooo any advantage. This is a charity act how to help people to remove homeless people from the streets to resolve the problem PERMANENTLY (with a freehold) and to save government's money. Government pays millions for rents for many years for the people but if they stop paying Housing benefit, they become homeless people, again. Unlike when they get freehold.