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    • Beth2805
    • By Beth2805 20th Apr 17, 6:12 PM
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    Beth2805
    Housing benefit, shared ownership
    • #1
    • 20th Apr 17, 6:12 PM
    Housing benefit, shared ownership 20th Apr 17 at 6:12 PM
    New to this... My partner and I are currently private renting. We receive housing benefit with the family premium as we have a child. We are waiting to move into a shared ownership property, where we will be paying rent for 65% of it. When we move will are housing benefit stop for any reason? Will we still receive the family premium?
Page 1
    • Cakeguts
    • By Cakeguts 20th Apr 17, 6:36 PM
    • 3,127 Posts
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    Cakeguts
    • #2
    • 20th Apr 17, 6:36 PM
    • #2
    • 20th Apr 17, 6:36 PM
    How are you going to pay for the other 45% of the shared ownership property?
    • theartfullodger
    • By theartfullodger 20th Apr 17, 8:40 PM
    • 9,059 Posts
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    theartfullodger
    • #3
    • 20th Apr 17, 8:40 PM
    • #3
    • 20th Apr 17, 8:40 PM
    New to this... My partner and I are currently private renting. We receive housing benefit with the family premium as we have a child. We are waiting to move into a shared ownership property, where we will be paying rent for 65% of it. ...........
    Originally posted by Beth2805
    With 45% of the price of your new shared-ownership home in the bank, how come you're getting any HB on your current private rental at all, please??
    https://www.citizensadvice.org.uk/benefits/help-if-on-a-low-income/housing-benefit/help-with-your-rent-housing-benefit/
    If you or your partner have more than £16,000 in capital, you will not get any Housing Benefit, unless you are getting the guarantee credit part of Pension Credit. If you or your partner have capital of over £6,000, you will be assumed to have some income from that capital.
    Not possible (yup, I have "O"-level sums...) if you've got that 45%....
    • jobbingmusician
    • By jobbingmusician 20th Apr 17, 9:07 PM
    • 18,785 Posts
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    jobbingmusician
    • #4
    • 20th Apr 17, 9:07 PM
    • #4
    • 20th Apr 17, 9:07 PM
    You may have o-level sums, but 100% minus 65% is not 45%......
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    • Cakeguts
    • By Cakeguts 20th Apr 17, 9:10 PM
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    Cakeguts
    • #5
    • 20th Apr 17, 9:10 PM
    • #5
    • 20th Apr 17, 9:10 PM
    You may have o-level sums, but 100% minus 65% is not 45%......
    Originally posted by jobbingmusician
    That would be down to me than as I don't have O level sums......and I can't add up. No good at darts scoring etc.
    • Cakeguts
    • By Cakeguts 20th Apr 17, 9:17 PM
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    Cakeguts
    • #6
    • 20th Apr 17, 9:17 PM
    • #6
    • 20th Apr 17, 9:17 PM
    rather ridiculously it appears you do get HB on shared ownership ...
    https://england.shelter.org.uk/housing_advice/housing_benefit/what_is_housing_benefit

    How housing benefit is calculated

    Find out how housing benefit is calculated if you rent from a council or housing association or pay rent as part of a shared ownership home.


    https://england.shelter.org.uk/housing_advice/housing_benefit/how_housing_benefit_is_calculated
    Originally posted by eggha
    Does that apply from when you first move in or do you have to already have any capital you might have invested in the part of the property that you own.

    What I couldn't understand was how someone who had enough money to pay for 35% of the shared ownership was able to claim housing benefit because surely they had too much in the way of savings? I can understand that if this money was invested in the shared ownership property then they could get housing benefit to pay the rent because they wouldn't necessarily have any savings.
    • theartfullodger
    • By theartfullodger 20th Apr 17, 9:18 PM
    • 9,059 Posts
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    theartfullodger
    • #7
    • 20th Apr 17, 9:18 PM
    • #7
    • 20th Apr 17, 9:18 PM
    You may have o-level sums, but 100% minus 65% is not 45%......
    Originally posted by jobbingmusician

    Ho, ho ho!!! Silly me...

    I also have OAP status which just might account for my dumb, obvious, error: Oops!
    • Beth2805
    • By Beth2805 20th Apr 17, 11:00 PM
    • 3 Posts
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    Beth2805
    • #8
    • 20th Apr 17, 11:00 PM
    • #8
    • 20th Apr 17, 11:00 PM
    We've got a mortgage for the 35% of the property, we put an £8000 deposit towards that. So basically we will be paying a mortgage for 35% the other 65% we will be renting
    • Cakeguts
    • By Cakeguts 20th Apr 17, 11:47 PM
    • 3,127 Posts
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    Cakeguts
    • #9
    • 20th Apr 17, 11:47 PM
    • #9
    • 20th Apr 17, 11:47 PM
    How did you get a mortgage while claiming housing benefit? Did you tell the mortgage company about the housing benefit?
    • ScorpiondeRooftrouser
    • By ScorpiondeRooftrouser 21st Apr 17, 7:54 AM
    • 2,049 Posts
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    ScorpiondeRooftrouser
    don;t know, all i did was google : "can you get hb on shared ownership"

    OP appears to have 8k of cash to fund the deposit requirement, but remains below the 16k capital threshold at which he would lose entitlement to HB. Therefore, on paper, the "ridiculous" situation of being a house owner whilst being funded by the taxpayer.
    Originally posted by eggha
    He's not going to be a house owner.
    • marliepanda
    • By marliepanda 21st Apr 17, 8:07 AM
    • 4,797 Posts
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    marliepanda
    what???? The OP is asking about shared ownership, the clue is in the name.
    Originally posted by eggha
    35% of one. With all the responsibility of 100%.

    Not for me.
    Survey Earnings 2017 - £163
    • Beth2805
    • By Beth2805 21st Apr 17, 11:06 AM
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    Beth2805
    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
    • By Cakeguts 21st Apr 17, 12:40 PM
    • 3,127 Posts
    • 4,334 Thanks
    Cakeguts
    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
    • By theartfullodger 21st Apr 17, 1:43 PM
    • 9,059 Posts
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    theartfullodger
    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
    • By IAmWales 21st Apr 17, 1:54 PM
    • 1,689 Posts
    • 3,481 Thanks
    IAmWales
    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
    • By Pixie5740 21st Apr 17, 1:57 PM
    • 11,107 Posts
    • 15,395 Thanks
    Pixie5740
    I think this question is really one for the Benefits and Tax Credits board.
    Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery.
    • teddysmum
    • By teddysmum 21st Apr 17, 2:01 PM
    • 8,522 Posts
    • 5,052 Thanks
    teddysmum
    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.
    • Cassandra W
    • By Cassandra W 21st Apr 17, 2:37 PM
    • 20 Posts
    • 54 Thanks
    Cassandra W
    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.
    • Rosieandjim
    • By Rosieandjim 22nd Apr 17, 1:17 PM
    • 83 Posts
    • 102 Thanks
    Rosieandjim
    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
    • Housing Benefit Officer
    • By Housing Benefit Officer 22nd Apr 17, 2:22 PM
    • 2,394 Posts
    • 4,258 Thanks
    Housing Benefit Officer
    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.
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