Anyone know about claiming housing benefit when name is on another mortgage?

rag31

Hi

My husband is in the process of moving out of the house we rent together.

We still own our old house as it's in negative equity and although we had it on the market for a few months it didn't sell. We have someone renting (for below the mortgage payments).

The bank won't take my name off the mortgage or allow him to buy me out as the LTV is so high and we have no savings.

Once he moves out I will need to claim HB to cover some of my rent (won't cover all, have checked it out on entitledto) but am wondering if you can get HB when you own another house, albeit one with no equity.

Does anyone know? I have been googling and reading up the HB info online but not found the answer.

Thanks
Becky

McKneff

If you are receiving rent from a propterty you own it is counted as income.
Its irrelevant whether to rent covers the mortgage.

I wouldnt think that you would be allowed to claim HB as you have a house
which you could sell whether in negative equity or not.

You cant seriously think that you can own a house worth thousands and thousands of pounds and then claim from the benefits system.

Give your tenants notice and live in the house yourselves.

cattie

Do you work or claim means tested benefits? If you are claiming benefits then it's possible you could get mortgage interest support for your half of the mortgage if you were living at the property. If you were to give the tenants notice then you could move in & perhaps take a lodger or two to help out with the rest of the mortgage?

Housing benefit will not be paid to you as McKneff has mentioned.

People excluded from claiming housing benefit are
Which people are not entitled to claim Housing Benefit?

You will not be entitled to any Housing Benefit if:

You own your home or have a mortgage on your home. However you may still be entitled to Council Tax Benefit.

• Either you or your partner, or both of you together, have more than £16000 in savings (unless you get the guaranteed part of Pension Credit).

• You are not responsible for paying the rent. However, in certain circumstances, you can be treated as the person who is responsible for paying the rent, even if your name is not on the Tenancy Agreement, for example, you are the partner of the person named on the Tenancy Agreement.

• You pay rent to a close relative who lives with you.

• You live in a care home, such as a nursing home or elderly persons' home.

• You rent from your ex-partner and you both used to live there.

• You are the parent or guardian of your landlord's child.

• You live in the home as part of your job.

• You are an asylum seeker, unless you've been given refugee status or indefinite or exceptional leave (also called discretionary or humanitarian leave) to remain in the United Kingdom.

• You have been admitted to the United Kingdom on the condition that you have no recourse to public funds. This means that you must not claim benefits.

• You are a sponsored immigrant and have lived here for less than five years.

• You are in the United Kingdom illegally or your permission to stay has run out.

rag31

Sorry, didn't make it clear. We don't live anywhere near the old house - we had to move for work purposes and failed to sell it. I suppose we could go bankrupt or allow it to be repossessed/move back into it but I had hoped there was another option to uprooting the four children or turfing out another family.

I would get taken off the mortgage if poss but with the current 'financial climate' the mortgage company won't have it.

I can't believe we'll be the only people in this situation. We are self employed, our income has bottomed out, we can't sell our old home, are struggling madly and are trying to stave off bankruptcy. But please, don't feel you have to try to empathise.

Becky

septemberblues

rag31 wrote: »

Sorry, didn't make it clear. We don't live anywhere near the old house - we had to move for work purposes and failed to sell it. I suppose we could go bankrupt or allow it to be repossessed/move back into it but I had hoped there was another option to uprooting the four children or turfing out another family.

I would get taken off the mortgage if poss but with the current 'financial climate' the mortgage company won't have it.

I can't believe we'll be the only people in this situation. We are self employed, our income has bottomed out, we can't sell our old home, are struggling madly and are trying to stave off bankruptcy. But please, don't feel you have to try to empathise.

Becky

I think you will find that people don't empathise with you, basically you own a home already, but are looking for the government to pay for housing for you on a different house? Why would they? You will have to put your house on the market for whatever it will sell for or live in it. Simples

SuzieSue

septemberblues wrote: »

I think you will find that people don't empathise with you, basically you own a home already, but are looking for the government to pay for housing for you on a different house? Why would they? You will have to put your house on the market for whatever it will sell for or live in it. Simples

Well, I for one do empathise with you. You "got on your bike" to look for work and can't sell your property because it is in negative equity. It would be different if you had some equity in it but you haven't but unfortunately, the benefits system doesn't cater for people like you who have tried to help themselves and not rely on the state for housing. I really don't think there is anything you can do but it is the system which is at fault, not you. Sorry I can't be of more help, but I do feel for you.

Emma1973

I do empathise with you, its definately not very easy in the current climate, however people are just stating the facts, stark as they may seem! But it is very easy to become annoyed with people who have other assests and means of income but wish to claim as many benefits as possible!

SuzieSue

Emma1973 wrote: »

I do empathise with you, its definately not very easy in the current climate, however people are just stating the facts, stark as they may seem! But it is very easy to become annoyed with people who have other assests and means of income but wish to claim as many benefits as possible!

Thanks, but that is the point - the OP does not have any assets - if they did, they would sell them and not have to rely on the state. The OP's house is in negative equity, so she can't sell it.

Emma1973

But if she were to lose the house she was in, she would have another home to return to (theoretically at least!), not like many people who when they have lost their home have nowhere else to go, no money to rent a new property, etc, so therefore it is an asset!

McKneff

SuzieSue wrote: »

Thanks, but that is the point - the OP does not have any assets - if they did, they would sell them and not have to rely on the state. The OP's house is in negative equity, so she can't sell it.

Of course she has an assett, a home you own whether in neg. equity or not is still owned and is there fore an assett.

She can sell it for what it will sell for like lots of others and then of course she would be in debt.
Welcome to the real world 2009.
then she would be able to claim housing benefit.:rolleyes:

SuzieSue

McKneff wrote: »

Of course she has an assett, a home you own whether in neg. equity or not is still owned and is there fore an assett.

She can sell it for what it will sell for like lots of others and then of course she would be in debt.
Welcome to the real world 2009.
then she would be able to claim housing benefit.:rolleyes:

Yes, great and so then the OP will be dependent on the state for ever because they will have no chance of getting on the housing ladder ever again. Of course, as soon as the OP could sell her house, she should have to. If the system helped people who were trying to help themselves like the OP then it would be seen as fair. At the moment, it only helps people to become more and more dependent on it (but of course it also acts as a recruiting ground for Labour supporters, so it will never be changed as long as Labour is in power)