Guarantor issues / can I afford this flat?

93123

I'm 18 and have found a potential first rented home. It's £300 a month. My uncle is unsure whether to be a guarantor because my Nan has told him HB for under 25s is stopping 'very soon' (I've been told it's stopping in a couple of years, if it goes ahead!). He was saying stuff such as "What if housing benefit suddenly stops, or if your benefits suddenly stop?" - My defense is that they won't suddenly stop. So please read about my income and expenses and tell me if he will have issues.

Income

ESA (Work-related group): about £98 per week
DLA: £35.50 per week

Total: £534

Outgoings

Rent: £300 (LHA will pay £216, I need to top up £84)
Council tax: (Council tax benefit will pay this)
Bills: £100
Food: £100
Phone: £26
Monthly bus pass: £40 (that's if I don't get accepted for bus pass)

Total: £430

I can't think of any other extras. My phone acts as broadband, phone etc so I won't need that... I won't have a TV unless I know I can afford the licence, I don't like going out (at least when I do I only use bus fare and money for food/drink) and won't if I can't afford it.. Anything else?

I will eventually get a job hopefully by going to these work focussed ESA interviews and even if they stop it at some point I'll get a similar amount with JSA with the disability premium. If worst comes to worst and they stop it all (what are the chances of me not finding ONE job in the time it would take them to cut JSA disability premiums?)

Thanks!

mynameistallulah

If you don't like going out, why do you need a monthly bus pass?

What is included in your "bills" amount?

Are you aware of the changes to DLA starting next year? I think this should be more of a worry than what might happen in a few years.

OneYorkshireLass

If you don't get a bus pass first go try asking your GP for a letter to include with your application detailing how it will benefit you to have the pass.

pmlindyloo

I know you are feeling desparate as you have another thread going about being asked to leave your cousin's place but your budget looks really tight.

At the very least you should be looking at somewhere which is paid entirely by HB (ie at your local housing rate for a house share)

As regards needing a guarantor. Have you been to your local housing department and asked if they do a Deposit Bond Scheme? (no money changing hands but they guarantee the Deposit)

Is this place (one bed/lodger/house share?) aware that you will be receiving HB?

As people have already said it would be far better if you can stay with family members if you can.

I suspect you want your own place but being realistic about the future benefit changes I would urge you to find lodgings/house share somewhere if staying with family is not an option. The housing Department may have some advice or would be able to signpost you to some charities that could help. Please visit them on Monday.

Dunroamin

93123 wrote: »

I'm 18 and have found a potential first rented home. It's £300 a month. My uncle is unsure whether to be a guarantor because my Nan has told him HB for under 25s is stopping 'very soon' (I've been told it's stopping in a couple of years, if it goes ahead!). He was saying stuff such as "What if housing benefit suddenly stops, or if your benefits suddenly stop?" - My defense is that they won't suddenly stop. So please read about my income and expenses and tell me if he will have issues.

Income

ESA (Work-related group): about £98 per week
DLA: £35.50 per week

Total: £534

Outgoings

Rent: £300 (LHA will pay £216, I need to top up £84)
Council tax: (Council tax benefit will pay this)
Bills: £100
Food: £100
Phone: £26
Monthly bus pass: £40 (that's if I don't get accepted for bus pass)

Total: £430

I can't think of any other extras. My phone acts as broadband, phone etc so I won't need that... I won't have a TV unless I know I can afford the licence, I don't like going out (at least when I do I only use bus fare and money for food/drink) and won't if I can't afford it.. Anything else?

I will eventually get a job hopefully by going to these work focussed ESA interviews and even if they stop it at some point I'll get a similar amount with JSA with the disability premium. If worst comes to worst and they stop it all (what are the chances of me not finding ONE job in the time it would take them to cut JSA disability premiums?)

Thanks!

You have very little allowance in this for clothes, toiletries, stamps, haircuts, presents, prescriptions, holidays, savings or any form of pleasure or leisure activity. You can't afford it.

(Also your figures don't add up.)

Caz3121

93123 wrote: »

Income

ESA (Work-related group): about £98 per week
DLA: £35.50 per week

Total: £534
this is the amount for 4 weeks, it is £578.50 per calendar month


Outgoings

Rent: £300 (LHA will pay £216, - are you basing this on an LHA of £54? in which case this will be £234 per calendar month I need to top up £84)
Council tax: (Council tax benefit will pay this)
Bills: £100
Food: £100
Phone: £26
Monthly bus pass: £40 (that's if I don't get accepted for bus pass)

Total: £430
the 4 items above come to £266 plus what you would need to pay towards rent which will be either £84 or £66

Are you looking at shared accommodation or self contained, with such a limited budget is may be easier to share for bills etc

carebear13

how are you going to furnish it?
you need to kit out the place from scratch.
i left home at 18 with a very unrealistic view of how it was goin to be and it was very very hard.
do you have any savings to back you up/buy furnishings.

sulkisu

Your budget is unrealistically tight, especially for someone who is just starting out on their own. You have not budgeted anything for the cost of setting up a home - buying everything that you need, e.g furniture, utensils, bedding, decorating if need be etc. No money for emergencies or to cover rising costs. When money is so tight, with the best will in the world it is very easy for your rent to fall into arrears.

£100 per month for utilities is optimistic, especially if you are on prepaid meters for gas and electricity - which at your age, in your circumstances, is likely.

If there are changes to HB in future, it is your guarantor who will ultimately be responsible, not you. There are proposed changes to council tax benefit, which mean that council tax will no longer be paid in full for some people. Those affected will have to top it up out of their other benefits. Your rent might go up - in fact eventually it definitely will go up. So many other things could happen. We have seen many threads on this site, where guarantors have basically been stuck with somebodyelses bills or debts. They never intend for this to happen, but situations arise and it does happen.

double_mummy

how have you worked out 100 for bills?

water - avaerage is around 30 pcm for a 1 bed flat depending on area
gas - can be a huge price range
electric - again large price range
insurance - tenner

seeing as you are not working and home most of the day as you dont like going out i would expect them to be higher than the average

100 per month sounds quite low for all of this what about things like heating in the winter where you could be paying loads more

93123

mynameistallulah wrote: »

If you don't like going out, why do you need a monthly bus pass?

What is included in your "bills" amount?

Are you aware of the changes to DLA starting next year? I think this should be more of a worry than what might happen in a few years.

I was referring to expensive, regular outings (pub/clubbing/day trips). Of course, I have to go out, for interviews, meetings, to visit friends etc.

My bills were an estimate of water, electric and gas. I'm intolerant to heat and turn it off whenever I can so I don't think my being in all the time will mean I consume more heat (lol). My main electric use is laptop/phone charging, I'm not going out at the moment but pretty soon I will be as I've recently been placed in the work-related activity group.

pmlindyloo wrote: »

I know you are feeling desparate as you have another thread going about being asked to leave your cousin's place but your budget looks really tight.

At the very least you should be looking at somewhere which is paid entirely by HB (ie at your local housing rate for a house share)

As regards needing a guarantor. Have you been to your local housing department and asked if they do a Deposit Bond Scheme? (no money changing hands but they guarantee the Deposit)

Is this place (one bed/lodger/house share?) aware that you will be receiving HB?

As people have already said it would be far better if you can stay with family members if you can.

I suspect you want your own place but being realistic about the future benefit changes I would urge you to find lodgings/house share somewhere if staying with family is not an option. The housing Department may have some advice or would be able to signpost you to some charities that could help. Please visit them on Monday.

They do a bond scheme however the guarantor is for the monthly rent payments, I don't think there is any way around this

Dunroamin wrote: »

You have very little allowance in this for clothes, toiletries, stamps, haircuts, presents, prescriptions, holidays, savings or any form of pleasure or leisure activity. You can't afford it.

(Also your figures don't add up.)

Clothes = I have enough clothes atm but should I need more I won't find it impossible
Haircut = £10 a month
Stamps = a few £ a month
Presents = Not many people to buy for, only a few times a year
Prescriptions = I get them free right now but they're a rare need as it is
Holidays = If I save I can afford a little holiday once a year, but it's not necessary. I don't go on holiday as it is
Hobbies = My hobbies are free online activities

Oh you're right, I added an 'extra' in then removed it, my bad. My total = £350 then.

I'm aware I won't be swimming in money but I was asking if it was possible, given the fact I don't have a life or any interest in doing anything other than necessary stuff (interviews).

If worst comes to worst I will move out and go into shared accom but I'm hoping it won't take a ridiculous amount of time to find a job, in the meantime I'll do voluntary work and training

carebear13 wrote: »

how are you going to furnish it?
you need to kit out the place from scratch.
i left home at 18 with a very unrealistic view of how it was goin to be and it was very very hard.
do you have any savings to back you up/buy furnishings.

Family will help me out with some utilities and I have some savings for the necessities. My council also do furniture grants for essentials (bed, fridge etc)

I'm aware of the benefit changes and like I said, I am preparing to go into full-time employment and if it all falls through I will go into a hostel, bedsit or do a flat share or something.

Thanks everyone

princessdon

You seem like a very sweet and fairly mature young man/lady.

My advice would be to look at shared accomodation - you may make new friends, have some company when times are tough in the last few days before your benefits come in etc. It's amazing how money can go when it's 1/1 and how far it can stretch between a few.

I'm not saying it is right for you - but do look at this as an option and investigate this fully before you make a decision and get tied into a 6/12 month lease.