Whats the deal with the LHA?

were looking for another place to live, the allowance for my area is £98.07 
a week, that's for a 1 bed self contained blace, as there are just 2 of us.

Now if we were to find a 2 bed place for that price, would they peanalise us 
like they did under the old HB rules? or is the £98.07 a week to do what we 
want with sort of, so if i could find a 20 bedroomed mansion for that price, 
i can have rent it and get LHA on the full ammount?

I'm looking for a 1 bed place, but there are a lot of 2 bedroomed places 
around my area lately for around the same price.

I'm also looking for a place with a garage, as my car is getting old and is 
rusting away being outside all the time, also my girlfriends scooter really 
needs somewhere dry and safe.

I know if the garage is seperate and an 'optional' extra they wouldent pay 
for it under HB, but what about LHA? the places i'm looking for are coach 
house style places, or terrace houses with a garage underneath, so the 
garage is part of the structure and short of renting it out to someone else, 
it can't be seperated from the rent for the property.