Am I entitled to anything?

worriedinstaffs

Hi all

Just hoping to pick your brains before visiting my local benefits agency.

My situation is quite complicated. I own a property outright worth about £120k. This is let out and there is currently 11 months left on the lease.

I used to rent a place myself where the income the above covered my rent.

I have been self employed for the past 4 years but about six months ago I fell ill with severe depression and anxiety for which I am being treated. My psychiatrist says that I am incapacitated and I currently feel unable to work.

I have subsequently left rented accommodation and moved back in with my mum.

I'm 37 years old.

I am unable to pay my bills and also need to start paying my mum board as she can't really afford to keep me.

So, after paying in for all these years I've now fallen ill and need a little financial assistance. Am I wasting my time asking as I own a house?

Regards and thanks in advance

Matt

skintandscared_2

Can't you live off the rent from your property, now that you don't need it to pay your own rent?

MrsManda

If you've paid enough national insurance contributions in the relevant years you may be able to get contributions based ESA though I'm not sure if your rental income will be taken into account when calculating payments.

As the rental income is no longer being used to pay rent on a property can you not give this to your mum/use it to pay your bills? Even without an 120k house as capital you wouldn't be able to get housing benefit while living with your mum.

worriedinstaffs

Unfortunately not.

Doesn't even come close to covering my costs.

I need to work (and want to) but until I get my illness under control I can't.

The irony is that if I was actually living in the house I think I'd be entitled to job seekers or incapacity along with council tax.

duchy

With an asset of £120K -and living at home -and no intention of putting the house on the market to release capital .............. No -You have income from your property and with 11 months to run presumably this is a new or recently extended tenancy so was done when you were already living at your Mum's -so yes you'd be expected to live off your investent income (rent from your property)

Yes you are correct if you can find a way to break the tenency you'd be in a position to claim.

worriedinstaffs

Yes, I've paid all my NI contributions since the age of 18.

Guess I'll have to make an appointment and see if there is anything they can do to help.

At the moment my financial situation is just getting worse and worse (not really helpful to a depressive).

skintandscared_2

Tenancies are rarely for more than a year so you can only have just signed a new one if there are 11 months left to run? Why did you not just move back into the house? You could try the benefits calculator, but I'd guess that the rental payments you receive are probably higher than a minimum wage income? How will you manage if things need fixing in the house?

Is there a break clause in the tenancy agreement, whereby you could get the house back sooner than 11 months?

worriedinstaffs

No break clause in tenancy.

Rental income is £550pcm

I couldn't move back into the house as I was ill and not working.

I couldn't afford the utilities and council tax so thought it better for the house to be earning me at least a bit of income rather than costing me money.

McKneff

What costs/bills have you got whilst living with your mum, surely it cant be any more than board money to your mum.

skintandscared_2

okay, so if the tenants are covering the bills at the house, and you are living with your mother, what "costs" do you have, except contributions towards board and perhaps a car/mobile phone bill? It is definitely worth speaking to someone in the benefits office, but I do think you will struggle to show you are in need when you have a £120k asset.

worriedinstaffs

Monthly Expenditure
Board £300
Pension £58
Car Tax £17
Car Insurance £33
Car maintenance/MOT £20
Diesel £40
Clothing £20
Phone £35
Prescriptions £26
Dentist £5
Haircuts £5
Gifts (Christmas/Birthday) £10
Total £469

The above doesn't include my class 2 NI contributions
Plus credit card and loan payments of circa £500 pcm.