I need to know my rights for means tested benifits

skintandscared_2

princessdon wrote: »

What capital do you have in your son's home?

Ie the market value - mortgage less 10%

What capital do you have in your home?

Ie the market value - mortgage less 10%


If you have capital in both then basically you will have to find a way for your son to take over the mortgage or sell his home or live off your savings.

From the OP's last post, I read that there is no capital in the son's house as the amount they re-mortgaged for was 15% more than the price of the house. OP - has the 15% extra you borrowed been spent on doing up the son's house and, if so, could the house now be sold for anything near the outstanding mortgage?

How much equity is left in your own property?

grummps

skintandscared wrote: »

From the OP's last post, I read that there is no capital in the son's house as the amount they re-mortgaged for was 15% more than the price of the house. OP - has the 15% extra you borrowed been spent on doing up the son's house and, if so, could the house now be sold for anything near the outstanding mortgage?

How much equity is left in your own property?

Hang on I don't read it like that.

The house the son lives in is mortgage free. It was the parent's home that was mortgaged to provide the cash funds to buy the house for the son.

I presume the parents are paying the mortgage they took out - it has nothing to do with the son - they in effect gifted him a property free of any charges or debt.

It's this mortgage that the parents have got themselves landed with that is causing the trouble. They would like the taxpayers to fund the interest on it courtesy of a means tested benefit.

Unfortunately they have now found out that they will only get help with the mortgage interest that is due on a mortgage taken out to buy their own home, not a second property.

As for other people having this problem - I don't think so.

Everybody knows that the government will not contribute towards the interest costs of a mortgage that was taken out to purchase a second property, likewise they won't for any type of equity release.

There was the case of a guy who genuinely had a mortgage which was used to buy his home. Then he paid off the mortgage by transferring the debt to his credit cards which had '0%' interest for a year or two, then remortgaged back to a bank.

He lost his right to any help with the mortgage interest when he paid it off and transferred the balance. He may still have the same debt, but technically the debt was settled.

xylophone

If the house belongs to the OP and partner, why aren't they charging the son rent?

skintandscared_2

grummps wrote: »

Hang on I don't read it like that.

The house the son lives in is mortgage free. It was the parent's home that was mortgaged to provide the cash funds to buy the house for the son.

I presume the parents are paying the mortgage they took out - it has nothing to do with the son - they in effect gifted him a property free of any charges or debt.

It's this mortgage that the parents have got themselves landed with that is causing the trouble. They would like the taxpayers to fund the interest on it courtesy of a means tested benefit.

Unfortunately they have now found out that they will only get help with the mortgage interest that is due on a mortgage taken out to buy their own home, not a second property.

As for other people having this problem - I don't think so.

Everybody knows that the government will not contribute towards the interest costs of a mortgage that was taken out to purchase a second property, likewise they won't for any type of equity release.

There was the case of a guy who genuinely had a mortgage which was used to buy his home. Then he paid off the mortgage by transferring the debt to his credit cards which had '0%' interest for a year or two, then remortgaged back to a bank.

He lost his right to any help with the mortgage interest when he paid it off and transferred the balance. He may still have the same debt, but technically the debt was settled.

Yes Grummps, I didn't explain it very well but what I meant was that the son's house doesn't have any capital in it because, if it was sold, the price realised wouldn't cover the mortgage they've taken on their own property to actually buy it.

Mojisola

ilovemyhouse wrote: »

Hi can anyone help us understant the rules around this.
we morgaged our home to buy a house for my son and partner and became unemployed but have been refused any means tested benifits because the house my son is in is classed as capital, but even if sold would not cover the morgage that we took out to buy it. and we had no mogage on our house before the house was bought that my son lives in:(

can anyone help please

It's a great shame that you didn't take advice before choosing to buy the other house. There would have plenty of people on here who would have pointed out some of the possible pitfalls, including the predicament you have found yourselves in now.

Is your son contributing to your household at all? If he was paying rent or his own mortgage, it would be costing him money every month.

epitome

I believe if it is a dependant child who lives in another house of yours it can be disregarded as capital. But I don't suppose that applies here..

epitome

ilovemyhouse wrote: »

but even if sold would not cover the morgage that we took out to buy it.

Why? Because you bought it before the property crash and now it has gone down in value?

Your son is presumably paying you back for the loan, an equal amount to what he would have paid on a mortgage. So that will go some way to paying off your mortgage.

Mortgage payment protection insurance policy?

You can at least get conts based JSA, and if you play your cards right you could qualify for another 6 months using different tax years on a later claim. but to do this you need to continuously claim JSA C & JSA NI credits only.

If you were to become ill you can claim ESA C for 365days

skintandscared_2

epitome wrote: »

Why? Because you bought it before the property crash and now it has gone down in value?

Your son is presumably paying you back for the loan, an equal amount to what he would have paid on a mortgage. So that will go some way to paying off your mortgage.

Mortgage payment protection insurance policy?

You can at least get conts based JSA, and if you play your cards right you could qualify for another 6 months using different tax years on a later claim. but to do this you need to continuously claim JSA C & JSA NI credits only.

If you were to become ill you can claim ESA C for 365days

The mortgage wasn't taken out on the new property. They re-mortgaged their own property to buy the new one, and borrowed 115% of the price so they could also do it up. So they now effectively own the new property outright and have a mortgage on their own home. There is no mention of the son paying anything towards the mortgage. I don't see how PPI could be claimed? They haven't said they can't actually afford the mortgage payments and the mortgage was only taken out in April this year.

I can't comment on the other suggestions to play the system because I don't have any knowledge of them. Except I'd be surprised they'd be available when you have such a large asset so recently acquired...

Firefox1975

clarified then.

They have taken a mortgage on their own property to aquire another asset.

they are now attempting to claim the government should pay their mortgage interest as they are un employed.

Government will not do this as they have a considerably sized asset that could be sold to realise the majority of the mortgage outstanding. (They may qualify for relief on the bit that is left after settlment)

The fact the OP has lost money on an investment is of no relevance to the government or our benefit system.

OP - It is a lesson hard learned. usually I don't advocate coming on here to ask a million questions first regarding benefit entitlement, however, in this case. It would have been worth outlining your proposal. Sorry.

Mojisola

Firefox1975 wrote: »

clarified then.

They have taken a mortgage on their own property to aquire another asset.

It isn't clear if the new house is now in the son's name. If it is then he should at least be paying towards the mortgage that his parents have taken out on their own home.

If it's still in their names, then he should be paying rent to them.

If the son realises his parents are in so much financial trouble and isn't bothering to help, more fool them for helping him out.

There's no way means-tested benefits will be available so, if another job isn't found, what are the options? What about selling the parents' house and moving in with the son or into rented accommodation? Could the OP be entitled to any health benefits?