Selling my home whilst on IS

Marisco

FBaby wrote: »

Why its your ex signing the house over to you? Wouldn't it better if he continued to pay his share of the mortgage until the children are at school and you get a job? You could then agree on the share of the sale and you could put this towards the deposit?

Maybe he cannot afford to pay CM, the mortgage, and pay his own living costs as well. If he carries on paying half the mortgage, then he'll be entitled to half the equity when it is sold, and maybe half would not be enough for her to use as a deposit.

mikey_bach

Marisco wrote: »

But how would she do this? She said she is going to rent and look for a job, but it could take months to get a job that pays enough to get a mortgage. And by that time her 26 weeks could be up, so what happens then? Would it not be better to stay put, look for a job, get a job, then sell and buy something else? As well as all the benefits, she should also get child maintenance, so unless the mortgage is huge, there might be a way of swinging it for a while, till she gets on her feet a bit.

She has the option to sell the house if she wants to, a DM would look it if the OP was granted the 26 weeks disregard and at the end of it hadnt found a property then the capital would be taken into account
The OP asked would there be a disregard on the capital.
Whether or not she wants to stay put is up to her,
Hope it goes well for her

missapril75

So...option one

Sell the house coming out of it with £20k. Take on a rented property. Lose benefit entitlement. Draw on capital - as one's only means - until it gets down to maximum allowed and lose a large chunk of benefits in tariff income thereafter, while still using up capital.

Disadvantage - lose all or most of deposit by the time one looks to buy.


Option two

Sell house, get £20k. Make decision to live in a Park Home or Mobile Home or whatever on permanent site and start looking.

Have the £20k disregarded (protecting the deposit) and continue on benefits. If suitable employment comes along quickly that enables mortgage for something else, then all well and good.

If not, buy the park home, live in it with minimal outgoings, remain entitled to benefits and if/when circumstances improve and employment makes mortgage likely, selling the park home provides the deposit.

Biggest difficulty the timing of sale and purchase. But the deposit is protected.

Option two - devious or practical?

kingfisherblue

Someone asked what LPA stood for - I think it is probably Lone Parent Advisor (at the Job Centre)

real1314

OP, have you considered staying in your current home?

No capital issues, mortgage currently covered (?), when you get a job you can review your situation? :cool:

Mr_Mcgregors_wife

I really want to get off benefits and get a job but if I did that in this house I would definately not be able to keep up with the mortgage. I will be downsizing and moving to a new area.

I thought that if I sold the house, moved and did temp work until I found a permanent job, I would be able to pay for my rent and still keep hold of any money I make from the sale to use as a deposit, or if necessary use a very small amount of it to tide me over.

I know i will have to pay all the usual bills, rent, c tax etc so would definately need to work immediately once the house was sold. Not sure whether I would have to pay 100% of childcare though or whether I would get any help with that.

I am not trying to stay on benefits. I would like to have a job and provide for my family but obviously don't want to lose my deposit as it will be the only bit of secruty I have.

Yes, i can stay in this house and not work for the next 4 years until my youngest starts school, claiming benefits and having my interest paid by the DWP but I don't think that is beneficial to me or my children.

I do feel like I'm in between a rock and a hard place at the moment. I have re-read some posts and can see why some people may think I want to have my cake and eat it.

Thank you to everyone who has replied. I think I will speak to someone from IS to see which way forward is best.

shop-to-drop

In that case I would try to get work ASAP even part time work to get off IS. You need to get off the means tested benefits if you want to be able to keep your equity safe. You can still claim tax credits, you would just have to declare the interest you are earning off the money in the bank not the capital itself.

real1314

Stay where you are and move/downsize when you find a job? :cool: