Proportion of rent liability in comercial property

Hi, guys

I have a case where a claim was made for housing benefit for a flat above the shop our client was renting for his own buissines. The landlord has refused to give a breakdown of how the rent is proportioned and HB has been refused though CTB allowed.

Is there any case law which assists in these curcumstances?

Phil

Reg 12B(3) Hb regs is the one you want.

I think the difficulty arises because the reg says that only the bit that is “referable to the residential accom” is eligible for HB. It is arguable that if none of it is “referable”, in that the agreement doesn’t specify, then none is eligible. It might also be arguable that no specific referrence could mean that it is all “referable” to the residential accommodation and hance all eligible.

Is it conceivable that the landlord doesn’t refer any of the rent to the residential element and hence that is the reason he refuses to apportion, it isn’t unusual for shops to have residential bits upstairs that just don’t feature as residential accomodation in the lease.

Sort of makes you a bit worried that the flat should not be used for residential purposes, as for example, it might not be fire safe.

Just a suggestion, is it feasible to measure the floor space and offer the respective proportion of that as being for the residential element?

Or, get a quote for the sale price of the shop and the flat together and then one just for the shop and do the split that way.

Yes,

We agree that housing benefit is definatly payable and as the LHA rate is much less than half the total rent our feeling is it should be paid in full less a nominal amount for the clients income.

Hopefully the appeals officer at the LA will see sense and revise.

Thanks

In your original post you say “was renting for his business” and in the last post that he has income that might mean HB is means tested,

If he derives his income from the shop (and I accept that your “was” might mean he no longer does) then the rent on the shop part will be included as a business expense. I only raise this because the apportionment is important for both the maximum HB and the calculation of income and that conflict is likely to raise a number of issues of challenge.

well it seems that the Appeals Officer at the LA agrees with you all including allowing the shops rent as a buissines expence he is propsing to calculate LHA as the rent for the flat and resolve the income issue.

Thanks