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Claiming Income Support with 2nd Property

Hi due to a recent separation I have been advised to claim income support, my children are young one under school age, I therefore can't claim job seekers.

My question is I am currently living in the matrimonial home (joint names) with no income, and ex is refusing to answer solicitors letters regarding alimoney for the children and house costs. I have been advised to contact benefits agency, CSA and tax credits. Benefits agency advised me to contact income support - just completing the forms.

I also have a 2nd property which is in my name but I have no income from this property as it has a family memeber living in it. It probably has about 15k equity if its sold but is not on the market. Will this property exempt me from qualifying for income support?

Thanks
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Comments

  • HappyMJ
    HappyMJ Posts: 21,115 Forumite
    10,000 Posts Combo Breaker
    haggis38 wrote: »
    Hi due to a recent separation I have been advised to claim income support, my children are young one under school age, I therefore can't claim job seekers.

    My question is I am currently living in the matrimonial home (joint names) with no income, and ex is refusing to answer solicitors letters regarding alimoney for the children and house costs. I have been advised to contact benefits agency, CSA and tax credits. Benefits agency advised me to contact income support - just completing the forms.

    I also have a 2nd property which is in my name but I have no income from this property as it has a family memeber living in it. It probably has about 15k equity if its sold but is not on the market. Will this property exempt me from qualifying for income support?

    Thanks
    Most probably. When calculating the equity did you take the market value then deduct 10% (for sale costs) then deduct any secured loans against the property to figure out your equity.

    It won't stop you from claiming tax credits and they will be much more than the £71.00 a week you could get from income support.

    If you need some more money you could charge the family member rent to continue living in the property. Can they pay you rent?
    :footie:
    :p Regular savers earn 6% interest (HSBC, First Direct, M&S) :p Loans cost 2.9% per year (Nationwide) = FREE money. :p
  • haggis38
    haggis38 Posts: 63 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    No can't charge any rent! yes I've sort of done the calculation, my understanding is that I will get tax credits as well as getting the income support, but by having a 2nd property will this stop my entitlement for income support? Thanks
  • pmlindyloo
    pmlindyloo Posts: 13,074 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    If your second property is occupied by an elderly or disabled relative then its capital value will be ignored.
  • haggis38
    haggis38 Posts: 63 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    No its my brother, he's neither, how would they know if he's old or not?
  • pmlindyloo
    pmlindyloo Posts: 13,074 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Not wishing to pry but is there any reason that he can't pay rent which might make you exempt on the second property 'rules'.
  • haggis38
    haggis38 Posts: 63 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    I owe him a favour, he's in no rental agreement although Im sure he get's a single person discount, I can't in any way charge him, thanks for your help.
  • Dunroamin
    Dunroamin Posts: 16,908 Forumite
    I don't really understand how you can expect to get state funding for your own housing costs when you refuse to charge your brother a market rent for a property you own.
  • nannytone_2
    nannytone_2 Posts: 12,973 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    so you want state funding to pay for the favour you owe your brother?

    can i borrow a few k from my brother and expect you to pay it back for me?
  • haggis38
    haggis38 Posts: 63 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    Guys so sorry, its a private matter not prepared to discuss online, I had a simple question regarding a 2nd property that's all, I didn't want to get into the thick of things or appear smart as some of you want too, have always found this as a useful resource but in my current circumstances bearing in mind my original post - my husband has just left me and 2 small kids with no income etc, I've spent the last 3 days completing forms for various benefits etc Im really struggling, thanks for your comments.
  • Dunroamin
    Dunroamin Posts: 16,908 Forumite
    I don't think that anyone wants to discuss this with you, much less to pry. However, you need to realise that this is the way the authorities will look at your situation and that you need to make your plans accordingly.

    Owning a second property, regardless of getting no rent from it, will have a major effect on your ability to claim means tested benefits so I'm afraid that you really must look at your arrangement with your brother and be prepared to change this in order to be able to survive.
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