Is this a good or bad idea, can I afford it?

HappySaver1968

Hi,

Today I found a property which I like and the owner is willing to take me on as a tenant because I explained my situation and he said he appreciated my honest, but that he didn't usually take people on benefits and so I'm very lucky. The property I have found is £500pcm and has two bedrooms but I also went to my local council and they said I will only receive in total about £365 per month (I think it was) in Housing Benefit and so I will have to make up the shortfall myself if I go ahead with this. I was also told to be wary of private lets as I did mention my CPN was discussing moving me into amenity housing and I was told amenity housing is more secure than a private let.

The lady also told me to be very careful as I'll have to pay Band D (?) Council Tax in this property which is a little bit more expensive and to think things over before signing any contract. She also said because it's a two bedroom property, I should budget for gas and electricity costs as they'll be a little higher than with a one bedroomed property. I know this is probably said by everybody but I really liked this property, have set my heart on it and I got a good feeling when I viewed it. I would have the peace and quiet I need there and there'd also be a spare bedroom for my children if they decide to come over and stay with me, or at least I'll have a place to take them when they visit.

I've not been on these forums very long but the people I've came across have been really helpful to me and I can't thank them enough. I hope that someone can guide and tell me if this letting is feasibly in my circumstances if I lay out my income and outgoings for you all to see? Would I be entitled to full Council Tax benefit in this private let or would there be a percentage to pay seeing as it is Band D? I'm desperate to move forward with my life and think that a move might just be the best thing.

OK, here is my income:

ESA/DLA - £238.05 per week (£1031.55 monthly)
My total monthly outgoings are less than £300 for everything.

Is it feasible? can I go ahead with this? if there's anything else you want to know then ask and I'll tell you. My CPN was really pleased to hear this and told me she will support me every step of the way and she said that she can inform my social worker who can talk things over but it would be good to know now what others think as for the first time in a while, I have home and something to be excited about. I will also add the house just for your own chance to view it. Thanks.

http://www.rightmove.co.uk/property-to-rent/property-35560688.html

John.

G_M

My total monthly outgoings are less than £300 for everything.

What does 'everything' mean? Rent?

Do a detailed breakdown of your monthly expenses - now AND if you move in. Work out what council tax, gas etc will be. Be realistic and include everything.

Are you single? Planning to live alone? There certainly are limits on HB and what thy'll pay.

I'd also post you question over on the Benefits forum here.

HappySaver1968

G_M wrote: »

What does 'everything' mean? Rent?

Do a detailed breakdown of your monthly expenses - now AND if you move in. Work out what council tax, gas etc will be. Be realistic and include everything.

Are you single? Planning to live alone? There certainly are limits on HB and what thy'll pay.

I'd also post you question over on the Benefits forum here.

Hi there, thanks for responding.

OK, from what I'm going by, I'll be paid around £365 per month in Housing Benefit and will have to pay the other £135 from my ESA/DLA which is fine as long as I have a roof over my head and I just hope it isn't illegal for me to do this.

I am single yes, will be living alone but fingers crossed I'll be able to have my children with me from time to time and it is good in that case that I will have the extra bedroom for them. I rarely spend more than £300 in a month and that is on gas, electricity, food, going out, all the usuals as I'm not a big spender.

What I will do is follow your advice and repost this over on the other forum you linked me too as well as this one and hopefully I'll get more advice that way. I know myself and I do think I could easily afford this new house but my worry is that it won't be forever and I need more than the six months you seem to get with a rental. I was told the letting would last for six months and then be renewed on a monthly basis, could I ask for it to be longer than this, or sign a new contract after the six months are up? Thanks again.

John.

Wee_Willy_Harris

If you have over £1000 a month in income and only £300 in outgoings, you must have a tidy sum in savings. If not, then one of those figures is wrong!

I can see why you like the cottage so much, btw.

callmechar

HappySaver1968 wrote: »

Hi there, thanks for responding.

OK, from what I'm going by, I'll be paid around £365 per month in Housing Benefit and will have to pay the other £135 from my ESA/DLA which is fine as long as I have a roof over my head and I just hope it isn't illegal for me to do this.

I am single yes, will be living alone but fingers crossed I'll be able to have my children with me from time to time and it is good in that case that I will have the extra bedroom for them. I rarely spend more than £300 in a month and that is on gas, electricity, food, going out, all the usuals as I'm not a big spender.

What I will do is follow your advice and repost this over on the other forum you linked me too as well as this one and hopefully I'll get more advice that way. I know myself and I do think I could easily afford this new house but my worry is that it won't be forever and I need more than the six months you seem to get with a rental. I was told the letting would last for six months and then be renewed on a monthly basis, could I ask for it to be longer than this, or sign a new contract after the six months are up? Thanks again.

John.

No of course its not illegal to do this

The actual band of your council tax makes no difference, if you are on income based ESA (in fact even if you were on contribution based) if that and DLA only income you will get full Council Tax Benefit.

After the initial 6 months end you could sign a new tenancy or they may let it become a "statutory periodic tenancy"

You could ask for more than 6m now, however based on your circumstances the landlord may not be willing to do this. Why dont you take the 6m and just see how it goes? See if it is manageable? ESA of £90 a week (I guess you are on approx this if not in assessment phase) and DLA isnt much (again depends on what rates you are on).

You could consider discretionary housing benefit too

HappySaver1968

Wee_Willy_Harris wrote: »

If you have over £1000 a month in income and only £300 in outgoings, you must have a tidy sum in savings. If not, then one of those figures is wrong!

I can see why you like the cottage so much, btw.

I wish! I've only just started on the ESA/DLA because I was in hospital for a longtime and when I came out, my CPN told me this was the money I was going to get and I then received a letter telling me this and how often I would be paid. I've never claimed benefits before and so I don't know the ins and outs of it but hopefully I won't be on them forever as I want to get better. I see what you mean, it's a really peaceful and tranquil place and I liked it a lot. Any money I do save will go towards my children because they're my everything. I don't have much now but I still have my children and this would be a place for me to start again.

John.

callmechar

HappySaver1968 wrote: »

I wish. I've only just started on the ESA/DLA because I was in hospital for a longtime and when I came out, my CPN told me this was the money I was going to get and I then received a letter telling me this and how often I would be paid. I've never claimed benefits before and so I don't know the ins and outs of it but hopefully I won't be on them forever. I see what you mean, it's a really peaceful and tranquil place and I liked it a lot.

John.

Also do not know what rates of DLA you are getting but there maybe other benefits you can get too? If you have an overnight carer you may get more HB?

BigAunty

You are a home owner, albeit a relationship breakdown means you cannot live in the property, so have you checked out the position on your eligibility for housing benefit on a rental property elsewhere?

I'm not sure of the position but got the impression that it can be a bit tricky.

HappySaver1968

callmechar wrote: »

No of course its not illegal to do this

The actual band of your council tax makes no difference, if you are on income based ESA (in fact even if you were on contribution based) if that and DLA only income you will get full Council Tax Benefit.

After the initial 6 months end you could sign a new tenancy or they may let it become a "statutory periodic tenancy"

You could ask for more than 6m now, however based on your circumstances the landlord may not be willing to do this. Why dont you take the 6m and just see how it goes? See if it is manageable? ESA of £90 a week (I guess you are on approx this if not in assessment phase) and DLA isnt much (again depends on what rates you are on).

You could consider discretionary housing benefit too

Hi, can I just confirm what you're saying is correct please?

Because I'm on income-based benefits, the full Council Tax, even at Band D will be paid for me? I'm guessing this doesn't include water and waste? that would be a great relief as it would mean only having to find about £135 per month extra for the rent and maybe a good £65 extra for gas/electricity. Great advice you have given, found out how to use the icons things and so here's to you :beer:

John.

HappySaver1968

callmechar wrote: »

Also do not know what rates of DLA you are getting but there maybe other benefits you can get too? If you have an overnight carer you may get more HB?

Hi, my nurse says she definitely thinks I'm entitled to high-rate DLA because I have day and night needs and have the intensive home treatment team visiting me just now up to three times a day to administer treatment. She said to think very hard about it though because I could lose my award completely in asking for it to be reviewed and to be truthful I'm just glad of the money I'm getting now at the medium rate because it helps me to cope and pays for things connected to how I am. I have two day-time home helps but they can't actually "help" me other than for trips out and shopping just now as where I'm living isn't my property and so they can't clean it or help me there.

John.

HappySaver1968

BigAunty wrote: »

You are a home owner, albeit a relationship breakdown means you cannot live in the property, so have you checked out the position on your eligibility for housing benefit on a rental property elsewhere?

I'm not sure of the position but got the impression that it can be a bit tricky.

Ideally, I'd like to move back into my own home but I don't think that would be possibly now and as much as I want to, I think renting is my only option. My wife has made it clear she doesn't want me there and I don't have the energy to fight her or go through legal proceedings. I just want a place to call my own and I think by renting privately, I'll have that, even if just for now. You give me great advice every time I ask a question, thank you for that.

John.