Claiming HB after leaving a joint owned home

Louk

H, I'm still exploring my options concerning housing on ending my marriage. If I was to leave our jointly owned home, i am pretty sure I would be entitled to HB. However would my Husband be forced to sell the property? I would not make alot of, if any money on the property as we bought it at the hight of the housing boom. So I certainly would have no where near the £16000 in savings that would see me refused HB.

BigAunty

Do you have kids? How old are you? Have you taken legal advice? Do you realise that you can be pursued for any mortgage arrears if your ex defaults even if you do not occupy the property? Remember that capital above 6k starts to reduce HB.

You can check out your eligibility and rate for Local Housing Allowance on the Direct Gov website for the LHA, and the Turn2us online benefit calculator.

http://www.dwp.gov.uk/publications/specialist-guides/technical-guidance/rr2-a-guide-to-housing-benefit/working-it-out/income-and-capital/

Property you own but do not occupy [HB Sch 6, HB(SPC) Sch 6; CTB Sch 5, CTB(SPC) Sch 4]

The value of this property is counted as capital but you may be able to get HB/CTB even if the value of the property means that your savings are more than £16,000. This is because the value of the property may be ignored when your savings are worked out, in certain circumstances.
If the property is occupied by an elderly or disabled relative as their home, its value is not taken into account for as long as it is so occupied.
If you have recently acquired the property and you intend to occupy it as your home, its value may not be counted for 26 weeks, or for a longer period if reasonable, from the date you acquired it.
If you are trying to sell the property, its value may not be counted for the first 26 weeks after you start doing this. It may not be counted for longer than this if you are finding it difficult to sell the property.
If you are carrying out essential repairs or alterations so that you can live in the property, its value may not be counted for a period of 26 weeks from the date you first arranged for repairs to be carried out. It may not be counted for longer than this if you are finding it difficult to finish the work.
If you are taking legal action so that you can live in the property, its value may not be counted for the first 26 weeks after you start doing this. It may not be counted for longer than this if legal action is continuing and you cannot live in the property.
If you have left the property after the breakdown of a relationship, and it is occupied by your former partner, its value may not be counted for the first 26 weeks after you left. If the property is occupied by your former partner and they are a lone parent, the property will not be counted for as long as it continues to be so occupied.

Louk

Yes we have one child, a Son aged 2 who will be with me. I'm 30.

pinklipy

Hi,

My friend left her partner a while ago with their son who was also 2 at the time, she rented a flat and applied for HB, they told her that because she owned another property she would not be able to claim HB. Even though her ex was still their and they had split up her name was on the mortgage so that was that.

Sorry

BigAunty

Louk wrote: »

Yes we have one child, a Son aged 2 who will be with me. I'm 30.

Get legal advice. For example, some lone parents get a court order to occupy the property until their youngest child turns 18, for example. See the Shelter website for information on your rights and possible options - they have a section on relationship breakdowns.

Get further advice on HB and see the full information on the link that I provided where it gives much more information on how capital is worked out, etc. Book an appointment with Citizens Advice?

Perhaps with the other example provided, they were refused because there was greater equity in the property?

Hopefully someone with greater knowledge of HB will tell you the rules in a simpler way than the HB manual I provided.

pinklipy

With my friends situation they didnt even go as far as to find out capital etc, she just recieved a letter back saying that as she owned another property she their for would not be entitled to HB and basically on the phone call after the letter she was told to go back and live their as it's only in extreme circumstances would an award be granted.

BigAunty

Well, you can show her the HB regulations which clearly state that for the first 6 months at least, the value of the property is not considered. What happens after this 6 month period, I don't know.

suelees1

BigAunty wrote: »

Well, you can show her the HB regulations which clearly state that for the first 6 months at least, the value of the property is not considered. What happens after this 6 month period, I don't know.

Yes this is correct. At the end of the six months you will need to show you are taking all reasonable steps to realise your financial interest in the property. As long as you are doing this you will contine to get HB.

pinklipy

My friend is in Scotland so maby it's different rules?
Sounds as though you will be able to get HB then, so that's great news :-).

BigAunty

pinklipy wrote: »

My friend is in Scotland so maby it's different rules?
.

I'm aware that the legal system is different there, such as housing law, but I am not aware of any differences across different parts of England, Wales and Scotland as to how the benefits system works - same rates, same qualifying criteria, same types of benefits available.

Get your friend to contact Citizens Advice or Shelter Scotland.

uganda

Louk wrote: »

H, I'm still exploring my options concerning housing on ending my marriage. If I was to leave our jointly owned home, i am pretty sure I would be entitled to HB. However would my Husband be forced to sell the property? I would not make alot of, if any money on the property as we bought it at the hight of the housing boom. So I certainly would have no where near the £16000 in savings that would see me refused HB.

No, your husband would not be forced to sell the property - it may be the better decision for both of you, but that is a separate matter.

If you realise £10,000 on the sale, that will be added to whatever capital and savings you have - presuming this amounts to less than £16,000, everything over £6000 would be assessed on tariff income of £1 for every £250 or part thereof. Hence, if your total capital was £12, 501, the tariff income would be assessed on £6,501 of it - you round up to the next £250, so it would be deemed to be £6750 divided by £250, which is 27. So, £27pw of income would be presumed, and added to the rest of your income in the assessment.

As others have mentioned, the house itself, if unsold, can also be assessed as income in the same way. A request would be made to the Valuation Office - their valuation, minus any mortgage, minus 10% would produce a net figure and this would be divided in two to get your share.

And, as others have also mentioned, the property while unsold could be disregarded, at least for a period. What stage are you at with your husband? Separated on a trial basis? Estranged? Divorced? If your relationship might not be over but you are separated for now, the property can conceivably be disregarded without a time limit as long as your husband lives there. If he has custody of another child other than the one that is in your custody even if it is not yours), and is therefore a lone parent, then the value of your property is similarly disregarded without time limit (except insofar as he will not always be a lone parent!)

You should read the relevant regulations:

http://www.legislation.gov.uk/uksi/2006/213/schedule/6/made - in particular paras 2,3,4, 25 and 26.

But do seek legal advice as you have also been advised.