Housing Benefit

inapanic_2

Hi

I would be really grateful if someone could answer this query. Due to bankruptcy we will be moving into rented accommodation and due to being unemployed and getting JSA we should get housing benefit. We have two children under 10. We own a 1 bedroomed flat that is in negative equity so the Official Receiver isn't interested in it. We rent it out and get about £200 per month after the mortgage is paid. Will this amount have to come off of our housing benefit or JSA. It is the only money we have coming in and don't mind it being deducted from benefits but still need to get HB until we are back in work. Any advice appreciated. Thank you.

black_paw

think your not allowed to own another place to get benefits but sorry if im wrong D'oh

Caz3121

I believe that there is an exception...if it is up for sale, the fact you have it will be ignored I believe for 6 months (even though it is negative equity as they count it as an asset and ignore debts eg mortgage)

black_paw

ask CAB for help on this one as can be very confusing

mrs*n_4

you can own another property, it doesnt have to be up for sale and your 'stake' in it has to be less than 16K.

You will need the house valued, which LA does when you apply for HB and proof of how much you owe/have paid off on it.
Thats my limited experience which is just 1 person - he split with an ex who he co-owned a house with which they let out to cover the mortgage but it was in negative equity too and he got HB...but they werent making money on the rent so not sure how thats stands, id assume as an income so there would be a reduction in HB id think.

Sure one of the resident profs can help you out more though

black_paw

fingers crossed