Hi All,

Im wondering if anyone has come accross this before.

Client entered into Muslim Mortgage 2005 the bank own the property and he pay's rent of £615 per month. The agreement says that the bank will transfer the property into clients name after 22 years rent payments.

Client goes onto short time working and claims HB which is refused stateing the payments are not treated as rent for HB purposes as it is a mortgage HP agreement or credit sale.

looking at CPAG carnt find anything that excludes him from liability exept agreements taking advantage of the HB scheem.

Seems to me client can rely on R v Sutton as main purpose of agreement to afford him housing not to take advavtage of HB scheem.

Is there any case law on this?

any help appreciated.

Phil

Have you seen the written finance agreement? There is more than one type of Muslim finance arrangement - the one I've seen did look similar to a type of HP agreement. I think even if you can argue that it is a tenancy, HB can't be paid for a long lease. If anyone does have a precedent for getting housing benefit for Muslim Finance I would be very interested to hear about it.

Latest edition of The Adviser has an article on the different types of finance agreement which you might find useful.

thank's ruth & jim.

the agreement states it is a tenancy with bank responsible for major repairs and insuring the property et. Client reponsible for decorating, not creating nusance or alter the property without permission et.

Loking at CH/883/206 will need to check if tenancy created "by deed".

Acording to Adviser agreement "Ijara" type.

Looks like a goer to me.

Phil