Housing benefit and renting out property.

david_ruffin

Hi,

I am in a 5 year relationship which includes 2 kids which is going to be ending soon.

At present we all live together in a mortgaged house which is solely on my name.

If i leave the family home i would still like my partner and kids to continue living there. I doubt if i can transfer the property to her name as she is not working. Instead i am thinking of charging her rent to cover the mortgage payments. I am assuming that she would be able to get housing benefit as a non-working single parent.

As for myself, i will have to rent a place to live in. If i am not working or only working part time, will i be able to claim housing benefit for myself? Or will it cause problems because of the money i will receive for the rent on my first house.

All the rent money will be going towards the mortgage. I will not be making an income from it.

I am not trying to scam the system here. I am just worried that if i cant find a full time job then how will i be able to afford a place to live for myself.

Greatly appreciate any help.

Thank you.

Breast_Cancer_Survivor

No she won't be able to claim housing benefit for living in the family home & no you won't be able to claim housing benefit if you already own a home.

david_ruffin

So the only option is to sell the house or somehow sell it to her so she can carry on with the remainder of the mortgage?

i have about £20,000 equity in the house. is there anyway that the mortgage can be transfered to her even though she is not working?

Breast_Cancer_Survivor

david_ruffin wrote: »

So the only option is to sell the house or somehow sell it to her so she can carry on with the remainder of the mortgage?

i have about £20,000 equity in the house. is there anyway that the mortgage can be transfered to her even though she is not working?

I can't see anyone giving someone that doesn't have a job a mortgage.

How would she even afford to make the payments.

Sorry.

david_ruffin

Breast_Cancer_Survivor wrote: »

Sorry.

its good. thanks for your help.

just not sure what to do.

Breast_Cancer_Survivor

david_ruffin wrote: »

its good. thanks for your help.

just not sure what to do.

As far as I can see you have 2 options.

1) Sell the house.

2) Your ex move out & you live in the house yourself.

dmg24

Breast_Cancer_Survivor wrote: »

No she won't be able to claim housing benefit for living in the family home & no you won't be able to claim housing benefit if you already own a home.

This is wrong. If you leave the family home and your family continue to live in it, it would be disregarded for benefit purposes and so you would be able to make a claim for HB. However, the rest of the family still could not claim HB. Had she been on the mortgage with you, she would have been able to claim SMI for her half of it.

david_ruffin

dmg24 wrote: »

This is wrong. If you leave the family home and your family continue to live in it, it would be disregarded for benefit purposes and so you would be able to make a claim for HB. However, the rest of the family still could not claim HB. Had she been on the mortgage with you, she would have been able to claim SMI for her half of it.

Is it possible i could put her on the mortgage now or is it too late?

I know some might be thinking why i care about her so much if im going to leave her anyway, but eventhough we cant get on i still wouldnt want to leave her and the kids in difficulty.

btw thanks for everyones help.

Breast_Cancer_Survivor

dmg24 wrote: »

This is wrong. If you leave the family home and your family continue to live in it, it would be disregarded for benefit purposes and so you would be able to make a claim for HB. However, the rest of the family still could not claim HB. Had she been on the mortgage with you, she would have been able to claim SMI for her half of it.

I meant if you own a home & rent it out as the rent would be classed as income.

Sorry I should of worded it better.

karenx

No bank would let you transfer the house into her name as she has no income so no way of paying the mortgage
She cant claim housing benefit to pay you rent as its been the house she has been living in

So if you want her to continue living in the house you will have to continue to pay the mortgage.

Why cant she move out with the kids into a private let and you continue living in your own house?

joeblack066

Ok couple of things here - I understand that you are trying to do the best for your ex partner and your children, but I think that you are going about it the wrong way. You are trying to find out which is the best way for you both to do things so that you maximise your individual benefit claims - not good! You need to look at things differently, as does your ex partner. How about this;

I think your ex partner is going to have to move out as the house is in your name, and if she did find a way to pay the mortgage all profits would be yours, so not good. If she moves out to private rented, she could get a job, and with any applicable tax credits and child support payments from you, will be able to move on with life. You stay on in the house, and if things are tight due to paying child support as well as all your other financial responsibilities, you can take in a lodger under the Govt Rent a Room scheme that is tax free. If you are concerned about your children being uprooted, kids are very adaptable and will soon adjust to their new home with Mummy, and would stay with you in your house when they are with you.
I do feel that it is a little unfair that the equity in the property is just yours, as obviously she has been raising the children whilst you were working, and has therefore contributed to the family, albeit not financially. But thats just a personal opinion. I am assuming that the house was yours before you met? Good luck.