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Housing benefit, shared ownership

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  • We're not going to own part of the house until we've paid off the mortgage for the 35% in 5years time. Yes the mortgage company know about us claiming housing benefit. The shared ownership house that we are buying is through our local council/housing association.
  • Cakeguts
    Cakeguts Posts: 7,627
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    Right so if you can't afford to pay the rent part without claiming housing benefit how are you going to pay for the repairs to the house? This is one of the problems with shared ownership. You only own a small proportion of the property but you have to pay for 100% of the repairs. The repairs are not done for you as they are if you rent the entire property. If it is a flat you pay the same service charge as someone who owns 100% and you also contribute towards repairs of the block of flats as if you own 100%.

    Home owners have to have a lot of savings in case they need to make a major repair. So for example if your house needed a new roof you would have to pay for it.
  • theartfullodger
    theartfullodger Posts: 14,453
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    OP will be subsidized by taxpayer (us lot) - just like most Buy2Let landlords with their tax relief on mortgage interest (including me... privileged OaP in receipt of 6 benefits, thank you you lovely taxpayers)
  • IAmWales
    IAmWales Posts: 2,024 Forumite
    You can claim HB on the rent element, your entitlement will depend on your income and household circumstances. The assessment won't take into account that you're paying a mortgage, so you'll need to be sure you can afford that in addition.

    If you are liable for a service charge you may also be eligible for assistance towards that (just to get Cakeguts really frothing at the mouth!).
  • Pixie5740
    Pixie5740 Posts: 14,515
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    I think this question is really one for the Benefits and Tax Credits board.
  • teddysmum
    teddysmum Posts: 9,471
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    I can understand a situation where someone in shared ownership falls on hard times so needs help with the rent part and the mortgage part (but isn't help with the latter only after a certain time ?). However, being able to opt into a situation where the taxpayer has to pay the rent, so someone can pay the ownership (ie mortgage part) seems ridiculous.


    Also, as has been said, renting from a council or HA is very different from combining buying and renting from them as in the former situation all maintenance is covered.


    What happens if the buyer/renter cannot pay for maintenance and the property falls into a bad state ? I can't see the vendors toleration that situation, as it devalues their (larger) share.
  • It doesn't seem fair you have to pay the 35% mortgage.

    Isn't there any way you could claim benefits for that as well?

    There are a lot of people paying a lot of tax. I wonder where it all goes.
  • I wonder if this is a wind up as every Association will do a thorough financial assessment to establish that you are able to afford the shared ownership property. I would be amazed if they allowed someone with housing benefit to buy
  • 1) You can get Housing Benefit on a shared ownership property for the rental element.

    2) The capital element of the home you live in is disregarded as capital.

    Legislation states you can rightfully claim Housing Benefit on the rental element of your shared ownership property. Good luck with your move and I hope you enjoy your new home.
    These are my own views and you should seek advice from your local Benefits Department or CAB.
  • teddysmum
    teddysmum Posts: 9,471
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    edited 22 April 2017 at 1:36PM
    1) You can get Housing Benefit on a shared ownership property for the rental element.

    2) The capital element of the home you live in is disregarded as capital.

    Legislation states you can rightfully claim Housing Benefit on the rental element of your shared ownership property. Good luck with your move and I hope you enjoy your new home.



    That's fair enough if someone is in a shared ownership contract and falls on hard times, but surely not if they choose to enter such, because freeing up income (replaced by HB) to pay the mortgage part means that the taxpayer is helping to buy the house ?


    Also, if they can afford the mortgage part, should they , even at the moment be eligible for HB, as they have the value of the mortgage element as spare money?


    Isn't going for shared housing , where the full cost is not affordable, like expecting full HB on a property with higher rent than the cap, because they have no means to top up ?
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