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Can I claim housing benefit on my rented flat if I let a mortgaged property?
niknoks_3
Posts: 2 Newbie
Hi, hope somebody can help me.
I needed to move to be nearer to work and family but had problems selling. Time went on, my property fell into negative equity and I couldn't afford to sell so I let my property and rented a property in the area I wanted to be. I then left my job for what I thought would be a better opportunity but the company folded after 4 weeks of me being there so I am left jobless! Can I still claim housing benefit considering I have another mortgaged property? I make nothing out of the property that I let, once the mortgage, maintenance, letting fees, tax and repairs are paid for and as mentioned it is in negative equity. My reason for moving was purely practical not to gain financially. I live alone, have no savings and am in fact in debt. I have just signed a year rental agreement as have my tenants. Obviously I am looking for a job but am concerned how long that will take and if I can get housing benefit in the mean time.
I needed to move to be nearer to work and family but had problems selling. Time went on, my property fell into negative equity and I couldn't afford to sell so I let my property and rented a property in the area I wanted to be. I then left my job for what I thought would be a better opportunity but the company folded after 4 weeks of me being there so I am left jobless! Can I still claim housing benefit considering I have another mortgaged property? I make nothing out of the property that I let, once the mortgage, maintenance, letting fees, tax and repairs are paid for and as mentioned it is in negative equity. My reason for moving was purely practical not to gain financially. I live alone, have no savings and am in fact in debt. I have just signed a year rental agreement as have my tenants. Obviously I am looking for a job but am concerned how long that will take and if I can get housing benefit in the mean time.
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Comments
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Well yeah, I've never claimed but don't see why I shouldn't and don't see anyway around it but I've got a couple of interviews lined up so will prob get a job and will be so much red tape that I won't be able to deal with in office hours that I prob won't get anything for the period I'm unemployed for! Thanks for your reply.0
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The council would need to look at the value of your 2nd property but if you are in negative equity, capital won't be an issue.
If you rent it out, they will use a period such as 6 / 12 months and use the rent you will receive, minus management costs and mortgage costs and use that as capital.
If you have capital of £16k or more, you wont qualify.
Good LuckI currently manage a Housing Benefit service and have been working in Housing / council tax benefit (as was) since 2001.
All views expressed in my posts are my own opinions and do not necessarily reflect those of my employer.0 -
You may be refused on the basis that you have a house you can live in without taking public money to pay rent to someone else.(AKA HRH_MUngo)
Member #10 of £2 savers club
Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton0 -
That would not bar you from hb seven day weekendI currently manage a Housing Benefit service and have been working in Housing / council tax benefit (as was) since 2001.
All views expressed in my posts are my own opinions and do not necessarily reflect those of my employer.0 -
The property may be in negative equity, however, if the transferable value is above 16k then that is what matters, not whether it is in negative equity in relation to the original mortgage.0
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fluffymovie wrote: »That would not bar you from hb seven day weekend
Surely the value of the house (not the mortgage) is taken into consideration?(AKA HRH_MUngo)
Member #10 of £2 savers club
Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton0 -
The value of the house is only realised once any secured loans are taken into account. Transferrable value is not relevant.
Currently HB departments would ask the Valuation Office to make a decision on value. Regs then state that we would allow 10% for selling costs and then disregard any loans secured on the property ie, the mortgage.
Eg, 250,000 home.
- 10% - £225,000
Mortgage of £230,000 means that the 2nd house would not mean someone was barred from HB.I currently manage a Housing Benefit service and have been working in Housing / council tax benefit (as was) since 2001.
All views expressed in my posts are my own opinions and do not necessarily reflect those of my employer.0 -
Just to mention, HMRC only allow deductions on rented out property for mortgage INTEREST, not capital repayments, so I would imagine HB would be the same0
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