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  • FIRST POST
    • pennypincher2013
    • By pennypincher2013 8th Oct 16, 7:20 AM
    • 208Posts
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    pennypincher2013
    DLA and mortgage interest - housing benefits
    • #1
    • 8th Oct 16, 7:20 AM
    DLA and mortgage interest - housing benefits 8th Oct 16 at 7:20 AM
    A friend of mine who claims DLA has paid 6 months rent on a property she has just moved into. She is hoping to have housing benefits, back paying the rent.
    She has a house with a mortgage (the house she just moved out of) which she says she hopes to sell. Because she has DLA, the interest on the mortgage is paid for.
    Would benefits continue to pay for an empty house and rent? And would they pay back rental payments that would cover the same time period as paying the interest on the mortgage house?
    Would that technically be paying my friend twice?
    Last edited by pennypincher2013; 08-10-2016 at 7:59 AM.
Page 1
    • Diary
    • By Diary 8th Oct 16, 8:19 AM
    • 417 Posts
    • 459 Thanks
    Diary
    • #2
    • 8th Oct 16, 8:19 AM
    • #2
    • 8th Oct 16, 8:19 AM
    A friend of mine who claims DLA has paid 6 months rent on a property she has just moved into. She is hoping to have housing benefits, back paying the rent.
    She has a house with a mortgage (the house she just moved out of) which she says she hopes to sell. Because she has DLA, the interest on the mortgage is paid for.
    Would benefits continue to pay for an empty house and rent? And would they pay back rental payments that would cover the same time period as paying the interest on the mortgage house?
    Would that technically be paying my friend twice?
    Originally posted by pennypincher2013
    You haven't given enough information on your circumstances to even make an educated guess.
    Master Apothecary Faranell replied, “I assure you, overseer, the Royal Apothecary Society dearly wishes to make up for the tragic misguidance which ended so many lives. We will cause you no trouble. We seek only to continue our research in peace".
    • anmarj
    • By anmarj 8th Oct 16, 8:57 AM
    • 1,511 Posts
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    anmarj
    • #3
    • 8th Oct 16, 8:57 AM
    • #3
    • 8th Oct 16, 8:57 AM
    Mortgage interest is only paid on the property that is lived in, so the help would stop on that
    mummy to one

    "A little knowledge is a dangerous thing"
    • FBaby
    • By FBaby 8th Oct 16, 9:27 AM
    • 14,334 Posts
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    FBaby
    • #4
    • 8th Oct 16, 9:27 AM
    • #4
    • 8th Oct 16, 9:27 AM
    When you say she hopes to sell, do you mean it's on the market and she hopes to get the price she is asking for? Or has she moved for whichever reason and expect tax payers to pay both towards her investment and her accommodation until she decides in the future that she might want to sell her property?
    • Sambella
    • By Sambella 8th Oct 16, 9:54 AM
    • 146 Posts
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    Sambella
    • #5
    • 8th Oct 16, 9:54 AM
    • #5
    • 8th Oct 16, 9:54 AM
    DLA is not a means tested benefit so the mortgage interest will be being paid based on other income based benefits.

    She would have to show a very good reason as to why she is selling this house (it has to actively be up for sale). Has she moved to a place more suitable for her disability perhaps on the recommendation of social services?

    She is unlikely to get both unless special circumstances apply but even then she may only get one..

    Housing Bemefit is unlikely to be backdated that far.
    • teddysmum
    • By teddysmum 8th Oct 16, 1:58 PM
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    teddysmum
    • #6
    • 8th Oct 16, 1:58 PM
    • #6
    • 8th Oct 16, 1:58 PM
    Any equity left after the sale of the property could also bring the asset level above that allowed for housing benefit to be paid ?
    • Caz3121
    • By Caz3121 8th Oct 16, 2:41 PM
    • 9,967 Posts
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    Caz3121
    • #7
    • 8th Oct 16, 2:41 PM
    • #7
    • 8th Oct 16, 2:41 PM
    Equity in the property now could do the same, if it is not being actively marketed or otherwise disregarded.
    Originally posted by Bogalot
    which may mean she is entitled to neither mortgage or rent help
    • pennypincher2013
    • By pennypincher2013 8th Oct 16, 9:22 PM
    • 208 Posts
    • 19 Thanks
    pennypincher2013
    • #8
    • 8th Oct 16, 9:22 PM
    • #8
    • 8th Oct 16, 9:22 PM
    When you say she hopes to sell, do you mean it's on the market and she hopes to get the price she is asking for? Or has she moved for whichever reason and expect tax payers to pay both towards her investment and her accommodation until she decides in the future that she might want to sell her property?
    Originally posted by FBaby
    She hasn't put the house on the market yet but is planning to do so soon. She hasn't said when she is going to do that. She has mentioned a cash buyer.
    • pennypincher2013
    • By pennypincher2013 8th Oct 16, 9:26 PM
    • 208 Posts
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    pennypincher2013
    • #9
    • 8th Oct 16, 9:26 PM
    • #9
    • 8th Oct 16, 9:26 PM
    She would have to show a very good reason as to why she is selling this house (it has to actively be up for sale). Has she moved to a place more suitable for her disability perhaps on the recommendation of social services?
    Originally posted by Sambella
    Neither. She wanted to move into a new place after a split from her husband. She kicked her husband out of the home (he's staying with family) and she and the children have moved into the rented accommodation. Hence the house being empty.
    Last edited by pennypincher2013; 08-10-2016 at 9:29 PM.
    • pennypincher2013
    • By pennypincher2013 8th Oct 16, 9:29 PM
    • 208 Posts
    • 19 Thanks
    pennypincher2013
    Any equity left after the sale of the property could also bring the asset level above that allowed for housing benefit to be paid ?
    Originally posted by teddysmum
    I don't know how much the house is worth on the market but my guess is no equity or very little.
    • pennypincher2013
    • By pennypincher2013 8th Oct 16, 9:33 PM
    • 208 Posts
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    pennypincher2013
    Equity in the property now could do the same, if it is not being actively marketed or otherwise disregarded.
    Originally posted by Bogalot
    Sorry I'm a little confused. What does actively marketed or otherwise disregarded mean?
    • FBaby
    • By FBaby 9th Oct 16, 10:02 AM
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    FBaby
    She might need to evidence why she decided to move when she had a good place to stay in whilst being put of for sale.
    • pennypincher2013
    • By pennypincher2013 9th Oct 16, 4:19 PM
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    pennypincher2013
    She might need to evidence why she decided to move when she had a good place to stay in whilst being put of for sale.
    Originally posted by FBaby
    She just wanted to move into a new place.
    Would she not get any housing benefits backdated for the 6 months rent she has paid upfront? Would benefits continue to pay the interest on the mortgage instead?
    She used the overdraft of her and her husband's joint bank account to pay for the 6 months rent.
    • NeilCr
    • By NeilCr 9th Oct 16, 4:27 PM
    • 356 Posts
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    NeilCr
    Some general information on HB here - including backdating

    https://www.citizensadvice.org.uk/benefits/help-if-on-a-low-income/help-with-your-rent-housing-benefit/#h-how-much-housing-benefit-can-you-get

    Looks like one month with reasons
    • FBaby
    • By FBaby 9th Oct 16, 5:37 PM
    • 14,334 Posts
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    FBaby
    She just wanted to move into a new place.
    And she thinks that should be enough of a basis to get tax payers to pay both towards her mortgage and her new accommodation?
    • teddysmum
    • By teddysmum 9th Oct 16, 5:50 PM
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    teddysmum
    I don't think any incapacity comes into this, as the move isn't for health reasons; just choice.
    • Caz3121
    • By Caz3121 9th Oct 16, 8:08 PM
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    Caz3121
    She needs to get the mortgaged property on the market pronto. They will no longer pay the interest on the mortgage as she is no longer living there, needs to check the council tax situation for empty properties...it may be 100% but varies by council
    She will need to declare the property ownership when she submits claim for housing benefit..they will assess the capital value and this may impact any housing benefit due unless she can show it up for sale or evidence there is no capital value/equity
    • TELLIT01
    • By TELLIT01 10th Oct 16, 3:34 PM
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    TELLIT01
    From my reading of the OP, they are already questioning whether that would be 2 payments for the same thing. I'm not getting any sense of entitlement there.
    Just in case my interpretation is wrong, the simple answer is that they won't pay contributions to mortgage costs and housing costs at the same time. There may be rare instances where that isn't true, but the chances are slim to none.
    Capital in the former family home can be disregarded for a period if the property has actually been put up for sale at market price. There may well also be an expectation that the asking price will be reduced quite quickly if there are no offers made on it.
    • teddysmum
    • By teddysmum 10th Oct 16, 6:31 PM
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    teddysmum
    From my reading of the OP, they are already questioning whether that would be 2 payments for the same thing. I'm not getting any sense of entitlement there.
    Just in case my interpretation is wrong, the simple answer is that they won't pay contributions to mortgage costs and housing costs at the same time. There may be rare instances where that isn't true, but the chances are slim to none.
    Capital in the former family home can be disregarded for a period if the property has actually been put up for sale at market price. There may well also be an expectation that the asking price will be reduced quite quickly if there are no offers made on it.
    Originally posted by TELLIT01


    The OP isn't the person hoping for a double payment. They are questioning what someone else expects.
    • pennypincher2013
    • By pennypincher2013 11th Oct 16, 11:24 AM
    • 208 Posts
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    pennypincher2013
    My friend has done this and it is clear she has not done her homework. She's done some bad things that I'm having a hard job being her friend right now.
    I think somewhere done the line she's going to be hit hard financially. She spending the overdraft of the joint bank account right now. I worry about the children.
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