Will I be made `homeless`

suburbanwifey

Oldernotwiser wrote: »

Why can't the OP sell the house when the term is up and buy something cheaper with the equity?

I suggested that but don't think he fancies retiring to the world of old people's static caravans just yet mind you, lots of old ladies around to take to the bingo and chat up though huh

Thrugelmir

RenovationMan wrote: »

Seriously though, if you were a mortgage lender where you had guaranteed mortgage payments from the government until someone died

SMI is capped at a given rate, currently 3.63%. So does not give guaranteed full payment of the mortgage interest.

SMI is also shortly going through a thorough review. So this may be of relevance to the current debate. The changes will implemented in 2013 when the Universal Credit is introduced.

Where there is longer-term dependency on the State, for example, where a claimant is disabled or takes a mortgage into retirement, the Government believes that taxpayers should not in effect be helping people to acquire personal assets through any potential long-term rises in house prices. We are therefore seeking views on an option to put a charge on property in return for long-term payment of support for mortgage interest.

A charge on the property, and an additional sum for interest and an administration fee, would be recouped on the death of the claimant or the sale of that property. Alternatively the claimant could choose to pay off the charge at any point. This policy would be fair to taxpayers and enable claimants to remain in their own homes.

Jennifer_Jane

Oldernotwiser wrote: »

There's lots of places where you can buy a one bed flat (at the very least) for £90K.

He can buy a nice, respectable house in Stoke-on-Trent, in a good area for £90,000. He's on benefits so no problem with where he lives. He wouldn't need to be 'homeless' at all. By the way, if he is 66, I wonder how old are his children? Couldn't they help to pay out the ex?

In the meantime, the OP has done well to have the taxpayer funding him for 10 years. And what has happened to any company pension provision he accumulated during his working years?

cod3

sexymax wrote: »

Thanks for all your comments..
1st my childrens mother was confronted regarding opting out..not interested
shes currently has been living in a new housing assoc house 3 bed £90.p wk
as far as shes concerned she can get approx £90k for doing f.a.
2nd My 2 children stay with me on and of and we live in east London. The £250k I recon the place is worth is for a 2 bed mid terrace victorian house not exactly Buckingham palace. ! and big point..I`ve lived here 23 years and renovated the place....its my home..I dont want to move..anywhere
and yes i did cash in the insurance some years ago when I was trying to keep my head above water..so theres no money there !

I am surprised that the ex would be given a housing association tenancy given that she already owns half a house.

I don't know much about it, but all the best OP.

Oldernotwiser

suburbanwifey wrote: »

I suggested that but don't think he fancies retiring to the world of old people's static caravans just yet mind you, lots of old ladies around to take to the bingo and chat up though huh

You can buy better than a park home for £90K, much less the £180K he now says he'll have!

RenovationMan

Thrugelmir wrote: »

SMI is capped at a given rate, currently 3.63%. So does not give guaranteed full payment of the mortgage interest.

SMI is also shortly going through a thorough review. So this may be of relevance to the current debate. The changes will implemented in 2013 when the Universal Credit is introduced.

I'm assuming that as the OPs mortgage has been covered by SMI for the last 10 years, and certainly since SMI was set at 3.63% (in October 2010?), that his mortgage is being covered. Remember, this is not a new SMI application, the OP has already been claiming this benefit.

While SMI is going through a review, the OP wanted advice now. Who knows what will eventually happen - perhaps nothing with this government that seems to come up with ideas such as universal state pension, no child benefit for high rate tax payers, etc. and then change their minds or postpone their legislation. You can only advise on the current rules, I am not going to speculate as this is a real case, not some theoretical discussion on the Economy board.

RenovationMan

Jennifer_Jane wrote: »

And what has happened to any company pension provision he accumulated during his working years?

Pensions Credit is means-tested so it can be assumed that any pension provision the OP may have made is not sufficient to allow him to live off, or indeed impact his PC.

suburbanwifey

Barny1979 wrote: »

Why would the OPs ex sign over half the equity to the OP for nothing?

She's crackers? (to be honest, she's got to be, but there is nowt as funny as folk as they say)

Jennifer_Jane

RenovationMan wrote: »

Pensions Credit is means-tested so it can be assumed that any pension provision the OP may have made is not sufficient to allow him to live off, or indeed impact his PC.

Indeed - so wondering why he hadn't made sufficient provision in his working years. There may be excellent reasons why he hasn't been able to, but I'm curious.

And, of course, quite rightly, the benefits people only look at the current position.

BethanyD

The current house is of course well above the average price for a home in the Midlands so not a bad starting point.

Selling and renting is of course a very good option as you then don't have to worry about falling house prices - I wonder how much the house price has increased whilst the state have been paying for it?

I'm amazed that the Government has not come up with a shared equity scheme whereby the the benefits agency takes a charge against a property for which they are providing funding.

Jennifer_Jane wrote: »

Indeed - so wondering why he hadn't made sufficient provision in his working years. There may be excellent reasons why he hasn't been able to, but I'm curious.

And, of course, quite rightly, the benefits people only look at the current position.