buy to let Property

bite21uk

Hello,,,

I work part time due to health reasons of which i claim NO benefits or top ups,, my partner and i are expecting our first child soon .(april)

My partner has been working Full time for years and now she is having a baby and about to pack up work,,, hence we'll only have my part time wage coming in plus child allowance and maternity allowance thingy.

My qyuestion is>> i have 2 buy to let properties that i rent out but actually make NO money on on a monthy basis (runs at a loss basically once mortages are paid each month)...

Are these included in so called "savings " or extra income?? as there is no income as such?

Can i now apply for help/tax credits/wages top-up etc etc now we are only going to be on one small part time wage?(mine)...

People say just sell the properties and you'll be loaded,,, but this is not true!
if i sell now with the current market as it is i'll be lucky to be able to settle the mortages and cetainly will NOT make any money on them..

So is there anyone out there in a similar position? or can tell me how we stand ? and where to start ?


thanks very much...:beer:

bite21uk

[Deleted User]

As far as i know only the home you live in isnt counted as capital,so i assume any additional properties will count against you,i`m sure someone will be along to confirm this(or to tell me i`m wrong)
Just a thought if your health stops you working full time do you have care and or mobility issues,if so you could apply for dla which isnt means tested and is avaliable even if you work

bite21uk

hi ,thanks for message,,, my health issue is not care and mobility related so dla (i dont think counts),,

i have a depressive illness /panic anxiety which i have meds to help control for last 12 years , and at the same time hold down a part time job (5x (3hour) afternoons per week. and take home about £100 a week of which is taxed etc and also pay nic etc.

Hopefully someone will answer the bit about the properties,,, like i said in first post they make nothing and are worth nothing if sold.

Damzel_In_Distress

yeh im sure they are counted,before giving benefits they look at it as you have assets you could sell to release cash.
I might be wrong but im pretty sure this is the case.

Oldernotwiser

You may not make any income from your proerties but you could sell them and realise the equity in them. I'm pretty sure that's the way the benefits system will look at things.

pontdugard

Do they have any equity in them if you attempted to sell in the current market ?

Particularly once you considered the costs involved which might also include mortgage early redemption penalties

DaisyFlower

As you only do 15 hours you wont qualify for WTC but will get CTC and FA.

Is there a reason your partner is not returning after her maternity? If she returned you may get the bulk of childcare costs paid plus maybe WTC dependent upon joint income. You could look at staying home yourself and your partner work as well.

thekid308

Does anyone know why the mortgage you have on a rental property is not taken into consideration when calculatiing savings for benefit purposes?

I have my own home but also 3 rental properties which are all in negative equity but am classed as having SAVINGS of over £16,000.

DKLS

bite21uk wrote: »

i have a depressive illness /panic anxiety which i have meds to help control for last 12 years , and at the same time hold down a part time job (5x (3hour) afternoons per week. and take home about £100 a week of which is taxed etc and also pay nic etc.

Cant comment about house and benefits.
But would recommend seeking treatment/help with the anxiety and depression.

12 years is a long time to be on meds, which I assume treats the symptoms only and not the underlying cause.
Might be worth asking your GP for a CBT referral, there is likely to be a lengthy waiting list, but there are free resources available to help you in the meantime, a great one is here

Oldernotwiser

thekid308 wrote: »

Does anyone know why the mortgage you have on a rental property is not taken into consideration when calculatiing savings for benefit purposes?

I have my own home but also 3 rental properties which are all in negative equity but am classed as having SAVINGS of over £16,000.

Because no debts, except the mortgage on the property you live in, are taken into the calculation of benefits. If they were, taxpayers' money would be going into making payments on personal debts.

bite21uk

Thanks everyone for the messages,,, i'm VERY grateful to you all as its been really worrying me..

Firstly> "daisyflower" i meant 18 hours per week (not 15) ,, does that make a diffrence ? and what is "ctc and fa " sorry for being so thick,, never been down this line before..
And yes my partner will return to work after baby ( she has too !) and yes
i may have to become full-time home hubby and leave my part-time job (although i have been there 17 years)...


secondly > "thekid908" where do they/you get the figure of £16,000 from?.

and "dkls" whats a cbt referral not heard of that one..

thanks all again...


bite21uk
(steve) :rolleyes: