Anyone that has had to go through the process of trying to secure Housing Benefit knows that if it goes wrong, it can have very expensive consequences.
Firstly, if the tenant seeks help from the Citizens Advice Bureau or Shelter, etc, they will be informed that to become eligible for emergency housing and benefits they will need to be facing eviction.
Unfortunately the best way for them to achieve this is to remain in your property without paying the rent, until you apply to the courts to have them evicted. As you know, this process takes several months meaning your once reliable tenant is now going to cost you several thousands of pounds in:
- Rent arrears
- Court fees
- Solicitors fees
- Bailiffs fees
- New locks and refurbishment
On average you will not see a lot of change from £10,000-£12,000 (including refurbishment) – see Average Eviction Costs Breakdown. Not forgetting, of course, the fees you will pay to the letting agent for finding the new tenant. All in all a very costly process!
In the case of a landlord who has an existing tenant on Housing Benefit or who has become unemployed, but cannot claim benefit or is stopped for whatever reason, then the outcome could go like this:
Based on £500 per month rent:
- £1,500 for Late payments – av. 3 months
- £ 800 for Eviction via Section 8 / 21 – via a solicitor
- £1,000 for Additional arrears before going to court – av. 2 months
- £ 300 for Court appearance – waste of the day and expenses
- £ 750 for One month’s eviction notice + 2 weeks Bailiffs notice
- £ 200 for Bailiffs called for final eviction (if needed)
- £ 200 for your time and expenses, eg
- £ 200 for New locks
- £5,000 for Refurbishment (for new tenant)
- £1,000 for Void period for refurbishment and waiting for new tenants - average. 2 months
- £ 500 for Letting Agent fees (tenant find, 1 month)
- £11.450 Total
All in all a very costly process!
This example could cost the landlord over eleven thousand pounds quite easily.
OR EVEN WORSE THE HOUSE BEING REPOSSESSED!
What we have found from past experience is that not all these rejection / reduced claims are legitimate. Subsequently many of these cases, when challenged, crumble and get reinstated. This means back-rents are awarded, often running into several thousand pounds, which we insist gets paid back directly to the you, the landlord.
Starting from only £50, you can have a One-to-One case assessment with one of the UKs leading LHA consultants, to assess the merit of your case and probabilities of a successful challenge.
We Can Answer Questions, Concerns, Issues Or Problems Quickly – Providing Clarity And Solutions
- Constantly Up To Date In Latest LHA Legislation
- Staffed By Ex-Industry Professionals With Over 20 Years Industry Experience
- We Know All The Ins & Outs Of Benefit System And Will Always Be Looking To Maximising Your Claim
- We Offer Excellent, Efficient And Expert LHA Advice At Very Low Cost
- We Will Fight Against Claim Reductions, Clawback And Refusals Etc
For more details goto www.HousingBenefitHelpline.co.uk
