Housing benefit help/advice?

Dory78

I've been reading this forum for the past few weeks with interest and already done a lot of research into the matter of housing benefit (although excuse me if I don't use the abbreviations as I'm still not that used to them!)
In a few weeks or so I will have to move out from the marital home that I shared for the past 4 years due to our marriage breaking up. Its totally amicable and this is the best way to do it financially as I wouldn't be able to pay a mortgage on my own (and obviously wouldn't get housing benefit to help out) whereas if I move out, he can continue to pay the mortgage and I can get help with a rented place.
My situation is, I currently work 25 hrs on just above minimum wage (£6.20ph) although I would have to drop that to 16 to take care of my daughter who is 5. I know the local housing rate for a 2 bed house/flat etc is £109.32 but most of the places round here are between £550-£600 pcm which is in excess of that - this is ok as I'd have wages and child tax and working tax credits to help pay that.
My question regarding housing benefit is that my name is on our mortgage and I really don't want to remove it, but I'm unsure as to how this would affect any housing benefit claim. Does anyone know how they work it out? I did read somewhere it was total value of property - mortgage - 10% = total equity and then I would divide by 2 to get my share? But then I would ask does anyone know if its 10% of the total value (ie if the property is worth £100,000 it would be £10k) or is it 10% of the equity left after paying off the mortgage as obviously thats a huge difference.
Currently we believe our house to be worth around £120,000 with a mortgage of around £100,000 so any help would be greatly appreciated

Thanks

Oldernotwiser

If there is no equity in the property, the split is amicable and your husband's wages will be enough for your lender, why not let him buy you out?

Dory78

He doesn't earn enough to buy me out unfortunately so either I'd have to relinquish my half (something I'm not happy to do) or I'd need to declare it

Dory78

I phoned my local council about housing benefit and they said as I would be no longer living in the property my husband should therefore pay me rent for living in my half of the property!!!! That seems utterly ridiculous to me, but if anyone can offer further insight or help with my initial query I'd appreciate it

Blue22

Hi

I'm not sure of the rules regarding owning a property and claiming LHA but you do realise that even if you were entitled to it, the amount payable would be reduced by your wages and tax credits? I got the impression from your OP that you believed you would be able to claim the full amount of £109.32

Dory78

No I'm aware I wouldn't be entitled to the full amount - I've already done some calculations regarding what I would be entitled to, I'm just a bit unsure as to if or by how much any assets tied up in a property might affect any remaining housing benefit.