Am i still entitled to benefits if a have a buy to let property?

saints1fan

Hi MSE's

I have just been made redundant and am about to, for the first time in my life, make a claim for job seekers allowance etc. My wife and I own a buy to let property which is rented out. It doesn't make us a profit, save about £20 per month, but I was wondering if this effected my entitlement to benefits?

Any advice you can offer will be appreciated.

Thanks

Cocoroco

Hello saints1fan,

The answer is yes, you are still entitled to Job Seekers.

I am in a similar position. I actually took voluntary redundancy early in the summer and got a small payout from my job. I also own a rental property but the rent doesn't quite cover the mortgage. I got my full benefits (job seekers) including housing benefit for the flat I actually live in/rent, and payment of council tax. As you make £20 a month from the rental flat they may take this tiny income into consideration so your benefits may be slightly decreased. Best to just be upfront with everything and let them do the calculations. Make your claim quickly as they can be stubborn backdating payments. Best of luck.

Emmzi

depends. is there a loan on the buy to let or is there wodges of equity in it? 6 months contribution based should be fine, after that, may start looking at your assets.

elfen

That tiny £20 will be taken into account, but as it's monthly it shouldn't affect the amount you get as you do have a - I think - £5 or £10 disregard a week - so £20 x 12 divided by 52 is slightly less than £5 a week - so it shouldn't be deducted. But you'll need to let them know if anything changes, and it's best to be honest upfront

saints1fan

Hi Cocoroco

Thanks for your advice. I have an appointment tomorrow with the job centre, so I will make sure they are aware.

saints1fan

Hi Emmzi & Elfen

I do make about £20 after paying the insurance and mortgage. There is probably very little, if any equity, so I couldn't sell it to release much cash. The tenant has just signed a new 36 month contract. Does this make a difference?

Thanks