Disabled, old and want to sell but cant get big enough mortgage

jonnyb1978

Hi. My partner and I are both classed as disabled. The interest on our Mortage is paid for by the Department of Work and Pensions. And we pay the £47.00 mortage payment.

We are looking to sell our home and relocate near my son mainly for support so he can help us out. By selling and after paying off all debts and mortgage we should have about £40, 000 left. As none of us can work getting a mortgage will be a problem. I have been told that by putting all equity as a deposit we are looking at roughly a £60/70,000 mortgage. This wont really be enough to get a house in the desired area. We have insurance policies if either of us die to ensure the safe payment of the mortgage..Will this help?

An alternate route is to use the £40000 to rent privately but obviously with £40000 in the bank we will not be able to claim housing benefit. Until it lowers to the threshold level.. This to me is dead money..

Is there anything i can do after selling the house.. Give the money as a gift to my son etc, special tax free account etc etc

Thanks for any advice

Mrs_Optimist

I'm waiting for the stampede of wagging fingers chastising you for wanting to dispose of your capital to your Son in order to continue claiming benefits.............

seven-day-weekend

You can't dispose of the capital in order to claim benefits.

I don't know how old you are, or how disabled. Would sheltered housing in a purpose-built scheme be an option? You can buy as well as rent.

My brother-in-law got a council bungalow, although he owned his house, as he has Parkinsons and my sister (sadly now deceased) had Alzheimers. Obviously he has to pay his own rent and Counil tax because of the capital from the sale of his house. I don't know whether this option would be available to you?

lynzpower

Theres shared equity arrangements too for sheltered accomodation, if thats appropriate for your needs

clutton_2

if your son were to buy a property in your new area as a Buy To Let, rent it out to someone else for 6 months, then rent it to you - would that work ?

Ted_Hutchinson

The DWP will allow you to transfer your current mortgage and will pay the same interest payments as they do now. As you are disabled they may even consider raising the amount of mortgage to cover any extra work that needs doing to take account of your disabled status. It would be worth talking to them to see just how helpful they may be.

tanith

Have you thought about applying for sheltered housing near your son? You can apply even if you have a home to sell as I investigated this for an elderly relative... the money you make from selling your home does not disqualify from applying although you would still have the problem with benefit thresholds

Mrs_Optimist

MY GOD What a difference... If it had been a single mother posting about the very same thing all hell would have broken loose ! There was a similar thread to this a week or so ago and the poor woman was hung drawn and quartered). Why is being a single parent less acceptable for paying the benefit game? (BTW I don't have any views either way and mean no offence to the OP - but am amazed at the hypocrisy on these forums sometimes)

Mrs_Optimist

Angela D the lady that posted recently had just left an unhappy marriage, and was about to be made homeless because the husband would not let her have the family home to live in with the children.. He had threatened to fight for custody because he stated that she could not home them.. She had £40k equity (if I remember rightly) and was in the same position as the OP but when she questioned disposing of the money so that she could be assisted she was given a right old tongue lashing. What about parents who are single because of violent relationships? Should they be refused state help too?

regularsaver1

I can not believe that post

Mrs_Optimist

WHat regularsaver1 - mine or Angela D's? I am not trying to be emotive, just genuinely surprised at the difference of public opinion the OP and the one I am referring to.