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  • FIRST POST
    • landlord2016
    • By landlord2016 4th Jul 17, 12:55 AM
    • 29Posts
    • 0Thanks
    landlord2016
    Benefit for landlord who is renting other city
    • #1
    • 4th Jul 17, 12:55 AM
    Benefit for landlord who is renting other city 4th Jul 17 at 12:55 AM
    Can a landlord claim benefit if he lives other city as renting.
    Scenario like this
    Family
    Husband wife and a disable child
    Husband is working earning 7.5 per hour . Hour varies week to week.
    Gross yearly income 16,000.
    Rental profit (Husband/wife joint mortgage) Expecting <3000
    Property Price 100,000 (Mortgage 84,000)

    Current benefit
    Child benefit
    DLA for child in wife bank account (310.60 for 4weeks)
    CA for wife to look after child.

    Is this family eligible housing benefit and child tax credit ?
    Last edited by landlord2016; 04-07-2017 at 12:57 AM.
Page 2
    • Housing Benefit Officer
    • By Housing Benefit Officer 5th Jul 17, 8:28 PM
    • 2,394 Posts
    • 4,257 Thanks
    Housing Benefit Officer
    why the 10% deduction from market value? (just curious)
    Originally posted by w06
    Cost of selling the asset, estate agent fees, solicitor fees etc....

    Has been 10% for nearly 30 years.
    These are my own views and you should seek advice from your local Benefits Department or CAB.
    • Housing Benefit Officer
    • By Housing Benefit Officer 5th Jul 17, 8:29 PM
    • 2,394 Posts
    • 4,257 Thanks
    Housing Benefit Officer
    Is this the whole mortgage payment, as opposed to just the interest as used for tax calculations ?
    Originally posted by teddysmum
    Yes the whole mortgage payment.
    These are my own views and you should seek advice from your local Benefits Department or CAB.
    • FBaby
    • By FBaby 6th Jul 17, 5:48 AM
    • 16,065 Posts
    • 39,930 Thanks
    FBaby
    We could say yes. Doesn't matter is someone owns another property or multiple properties.
    Isn't this another huge loop hole then? So anyone owning a property, who find themselves unemployed and not able to pay their mortgage would be better off moving out, letting their house and then going to rent elsewhere and claim HB whilst the rent pays their mortgage? Indefinitely?
    • Guest101
    • By Guest101 6th Jul 17, 9:51 AM
    • 15,128 Posts
    • 14,763 Thanks
    Guest101
    Cost of selling the asset, estate agent fees, solicitor fees etc....

    Has been 10% for nearly 30 years.
    Originally posted by Housing Benefit Officer


    Well conveyancing can be as little as £600, but let's say £1,000 and estate agents fees are typically either fixed or upto 2.5%, usually less. That's 3.5%, where's the other 6.5%?
    • Guest101
    • By Guest101 6th Jul 17, 9:52 AM
    • 15,128 Posts
    • 14,763 Thanks
    Guest101
    Yes the whole mortgage payment.
    Originally posted by Housing Benefit Officer


    Why? That's literally an income.
    • Housing Benefit Officer
    • By Housing Benefit Officer 6th Jul 17, 6:37 PM
    • 2,394 Posts
    • 4,257 Thanks
    Housing Benefit Officer
    Isn't this another huge loop hole then? So anyone owning a property, who find themselves unemployed and not able to pay their mortgage would be better off moving out, letting their house and then going to rent elsewhere and claim HB whilst the rent pays their mortgage? Indefinitely?
    Originally posted by FBaby
    It would depend if the property had any capital value. Properties increase and decrease in value. So someone might be entitled to benefit as their property has little or no capital value but the housing market means the capital value increases so they then get disqualified from HB as capital goes above £16k. House prices increased by 7.6% in 2016.
    These are my own views and you should seek advice from your local Benefits Department or CAB.
    • Housing Benefit Officer
    • By Housing Benefit Officer 6th Jul 17, 6:39 PM
    • 2,394 Posts
    • 4,257 Thanks
    Housing Benefit Officer
    Well conveyancing can be as little as £600, but let's say £1,000 and estate agents fees are typically either fixed or upto 2.5%, usually less. That's 3.5%, where's the other 6.5%?
    Originally posted by Guest101
    10% is the Governments figure.
    These are my own views and you should seek advice from your local Benefits Department or CAB.
    • Housing Benefit Officer
    • By Housing Benefit Officer 6th Jul 17, 6:47 PM
    • 2,394 Posts
    • 4,257 Thanks
    Housing Benefit Officer
    Why? That's literally an income.
    Originally posted by Guest101
    Don't make the rules just implement them.

    If the rental property is occupied by a disabled pensioner relative then it is 100% disregarded as capital.

    If I was a landlord who fell on hard times I would fill all my properties with disabled related OAPs and the capital values of all these properties would be disregarded.
    These are my own views and you should seek advice from your local Benefits Department or CAB.
    • landlord2016
    • By landlord2016 8th Jul 17, 8:55 AM
    • 29 Posts
    • 0 Thanks
    landlord2016
    Thanks all.

    Is there any telephone number to call and discuss ?
    Most of the calculator online do not have property owner option .
    • Housing Benefit Officer
    • By Housing Benefit Officer 8th Jul 17, 9:08 AM
    • 2,394 Posts
    • 4,257 Thanks
    Housing Benefit Officer
    Thanks all.

    Is there any telephone number to call and discuss ?
    Most of the calculator online do not have property owner option .
    Originally posted by landlord2016
    Phone and speak to your local Housing Benefit Department.

    property current market value - minus 10% - minus mortgage outstanding = capital.

    Rental income - minus mortgage payments - minus agents fees - minus insurance and any other expenses incurred renting out property = income.
    These are my own views and you should seek advice from your local Benefits Department or CAB.
    • FBaby
    • By FBaby 8th Jul 17, 1:16 PM
    • 16,065 Posts
    • 39,930 Thanks
    FBaby
    If I was a landlord who fell on hard times I would fill all my properties with disabled related OAPs and the capital values of all these properties would be disregarded.
    And then we wonder why more and more people want to leave this country!
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