is my home at risk if want to claim JSA benefits?

PEDro72_2

I was made redundant last year and initially claimed contribution based jsa. I was then able to make a claim against a mortgage protection policy for the duration of one year which is almost up. I have not claimed for income based benefits in this time as i beleived that the payout from the protection insurance would make me ineligable for these.

When my employment circumstances changed i realised that i would not be able to financially maintain my mortgage, council tax and all the other costs of living in and running a house on your own and so made arrangements to move in with a relative and rent the house out until i was in a position to take those responsibilities on again. As a consequence i have been able to use the insurance payments to live on rather than claim benefit.
The house currently yields a rental which is equivalent to the cost of my mortgage and the house insurances once the letting agency fees are paid.

As the mortgage protection payment is due to end shortly I have been told to make a change of circumstances claim for Income based jsa, but the status of the property and its value and income generated has been highlighted and I have been asked to supply further info relating to it and the mortgage protection.

This has made me nervous as i fear that i will be told that i am not eleigable for benefit even though the rental yeild does not provide me any funds to contribute to my living expences. and worse that i may be told to sell the house and live off the equity.

I would appreciate any advice on this issue...


alternatively would i be able to claim any support if i were to take the property back and live there myself...


Your thoughts....

dseventy

PEDro72 wrote: »

I was made redundant last year and initially claimed contribution based jsa. I was then able to make a claim against a mortgage protection policy for the duration of one year which is almost up. I have not claimed for income based benefits in this time as i beleived that the payout from the protection insurance would make me ineligable for these.

When my employment circumstances changed i realised that i would not be able to financially maintain my mortgage, council tax and all the other costs of living in and running a house on your own and so made arrangements to move in with a relative and rent the house out until i was in a position to take those responsibilities on again. As a consequence i have been able to use the insurance payments to live on rather than claim benefit.
The house currently yields a rental which is equivalent to the cost of my mortgage and the house insurances once the letting agency fees are paid.

As the mortgage protection payment is due to end shortly I have been told to make a change of circumstances claim for Income based jsa, but the status of the property and its value and income generated has been highlighted and I have been asked to supply further info relating to it and the mortgage protection.

This has made me nervous as i fear that i will be told that i am not eleigable for benefit even though the rental yeild does not provide me any funds to contribute to my living expences. and worse that i may be told to sell the house and live off the equity.

I would appreciate any advice on this issue...


alternatively would i be able to claim any support if i were to take the property back and live there myself...


Your thoughts....

Few questions before advice

1) How much was the redundancy payment?
2) Do you not live in the house in question? Where do you live?
3) What is the rent payment for the house?
4) What payments do you pay for where you live? Parents? friend?
5) What were the mortgage insurance payments you lived off? ie how much?
6) You state "your home" is at risk, yet dont live there and clearly have other arrangements, what are they?
7) Does the mortgage company or those providing insurance to the property know you don't live there and have tenants in?
8) Have you declared your income?
D70

paddedjohn

Your home isn't at risk because you don't live there, ie it's not your home.

mynameistallulah

Have you informed the MPP provider and your mortgage company that you are letting the property?

PEDro72_2

To answer your questions D70

I was not eligable for redundancy payment because i had only been employed for six months.

I rent the house out, I currently live with a relative.

the rent payment is £625 pm, the letting agent takes £75. i recieve £550. my mortgage is £530 with house insurance £15

As its family i pay £60 for rent

the payment protection payout was £600 pm

dseventy

PEDro72 wrote: »

To answer your questions D70

I was not eligable for redundancy payment because i had only been employed for six months.

I rent the house out, I currently live with a relative.

the rent payment is £625 pm, the letting agent takes £75. i recieve £550. my mortgage is £530 with house insurance £15

As its family i pay £60 for rent

the payment protection payout was £600 pm

Thanks, though you did not answer all the questions, nor others on the thread. Can you answer them?

D70

Voyager2002

If you continue to live with relatives and claim income-based JSA, your benefit will be reduced by the profit you make on your letting business, which is likely to be about ten pounds per month judging by the figures you posted. If your equity in the property, together with any other savings or capital assets, comes to more than about six thousand pounds then further deductions will also apply.

If you return to live in your home then you should receive the full amount of JSA, together with help towards paying your mortgage interest.