Housing Benefit

dangerman7uk

Right, I'm in a complicated situation and was hoping if anyone could clarify something for me.

I own a little two bed terraced house in Liverpool and I can't sell it for what I need (even break even on it). And so I cannot afford to take a loss and end up in even more debt. So I've opted to rent it out with the guaranteed rent scheme with Northwood. I'm doing this at a loss of about £60 a month but that's something I can handle (just).

Now as I have three kids, I've arranged a deal to rent a three bed house in Southport for £545 per month. Including the loss it means that I'm effectively £285 worse off each month for having the better home. Sefton Council offer housing benefit to people like me - BUT because I own another property the website indicates I'm not entitled. Hardly seems fair to me - rock and hard place. Can this be right?

Can anyone enlighten me as to what options I may have?

Thank you!

gibboking

Hi.
My husband and I have just seperated.
As our house is in negative equity at the moment we can not sell it. Ex is happy to stay in the house and continue with the mortgage payments. I am happy for him to do this as I want to move out and move on! I can't get my name taken off the mortgage as we have a small amount of arrears at the moment which should be paid off in 2 months and also the mortgage company won't allow me to remove my name s they believe my husbands earnings aren't enough for him to be able to cope alone...(he can, we have sat and worked it all out)

My question is... Will I be able to claim housing benefit if my name is on the mortgage? I work 28 hours a week, take home £734 a month and have 2 children who will be living with me. I am changing my tax credits claim from joint to single so believe that should increase.

Thanks in advance for any advice

gibboking

Sorry thought I had made my own post lol

dangerman7uk

Well it sounds like a similarish problem to mine as far as housing benefit goes, so maybe some of the experts on here would be able to help us both out.

rogerblack

dangerman7uk wrote: »

Right, I'm in a complicated situation and was hoping if anyone could clarify something for me.

I own a little two bed terraced house in Liverpool and I can't sell it for what I need (even break even on it). And so I cannot afford to take a loss and end up in even more debt.

Do you mean you're in negative equity?

karenx

Thats correct that if you own another property then your not entitled to any housing benefit on another property. Whats stopping you living in the house you own? Why should you have a house where your getting rent for so paying the mortgage then get housing benefit to pay for another house??

BigAunty

It's not really a £60 loss because by the time there are repairs (tenanted properties have higher wear and tear). My friend rented her flat on a guaranteed rent scheme with a local council and got it back 3 years later totally trashed and unsellable until nearly 8k worth of repairs and refurbishment was undertaken. The tenant wouldn't move out either.

BigAunty

gibboking wrote: »

Hi.
My husband and I have just seperated.
...

My question is... Will I be able to claim housing benefit if my name is on the mortgage?

You should have started your own thread but see the section here which also may clarify things for the OP a bit.

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

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

To identify your LHA entitlements, go to the Direct Gov website to identify the maximum LHA for the size of property you are eligible for and use the Turn2us online benefit checker to double check how your income affects it and other benefits you may be entitled to. Your ex's child maintenance will not affect any benefits, it's on top of what you get.

dangerman7uk

rogerblack wrote: »

Do you mean you're in negative equity?

No, the proper actual value according to agents and my bank is more than I owe - I owe £56,000 and the value is around £69,995.

But if I HAD to sell it right now I'd probably only get £60k.

And since I owe the council money for regeneration (if I sell it within ten years of them giving me a £5000 grant), plus fees that I'll incur from solicitors and estate agents.

Houses just aren't shifting here at the moment.

dangerman7uk

karenx wrote: »

Thats correct that if you own another property then your not entitled to any housing benefit on another property. Whats stopping you living in the house you own? Why should you have a house where your getting rent for so paying the mortgage then get housing benefit to pay for another house??

Because the house I own is only two bedrooms and I have three kids. And it's smaller than any other two bed houses I've seen - it's probably about the same square footage as a large static caravan. Plus there is no yard or garden, there is just an alley at the back of my kitchen and the front door opens straight onto the pavement.

To live here is poverty and we have no choice but to move.

I'm renting it at a loss, I'm losing at least £60 a month by renting it out.

rogerblack

dangerman7uk wrote: »

No, the proper actual value according to agents and my bank is more than I owe - I owe £56,000 and the value is around £69,995.

As I understand it, one of the reasons a house may be excluded from consideration is if it's on the market.

I know this is the case for council tax benefit.
I'm unsure if it's for housing benefit too.
If it is, then putting it on the market may mean you can claim HB.