When you inherit a house, can you claim housing benefits??

PippaGirl_2

Absolutely. Sorry dunroamin, I hadn't realised you had problems with comprehension and might not have understood what I have said. I certainly did not say a person cannot take out a BTL mortgage on a property they own!

I said that following a death of a mortgagee a lender must not allow someone else to pay the mortgage on anything else but a very short term temporary basis. Hence this current mortgage will need to be paid off soon.

A mortgage would only be offered to the title holders of the property, if the circumstances are right it might be possible for all four equal share holders to obtain a small mortgage in equal shares jointly. But as it seems only one is currently working this might not be feasable in this case.

Dunroamin

PippaGirl wrote: »

A mortgage would only be offered to the title holders of the property, if the circumstances are right it might be possible for all four equal share holders to obtain a small mortgage in equal shares jointly. But as it seems only one is currently working this might not be feasable in this case.

You seem to be forgetting (along with your manners) that lenders take account of rental income when offering BTL mortgages.

Dunroamin

Lovelyjoolz wrote: »

That's the point. The OP doesn't own it. She will own 25% of it when probate has been completed.

No Lender will lend £30k against a £47.5k share of a house. BTL or not.

As above, I was obviously talking about a joint mortgage!

Mojisola

xylophone wrote: »

In these circumstances, I am wondering whether the boys/ your sister as guardian might be eligible for social housing.

As they are all over 18, I don't think the council would consider them for housing. They are adults about to inherit a lump sum that would enable them to rent privately.

It's very difficult having to deal with all this stuff at such a sad time so do get help.

plum2002

Until probate is granted the house can't be sold. In addition, if you are paying the mortgage then you must be refunded after probate and before other beneficiaries are paid out. However, when my Dad died the mortgage was frozen and the monthly payments were made AFTER probate with no other interest added. You are not liable for the mortgage debt until after probate, and even then it is the estate that is liable.

editted to add: actually the payment was made after the sale of the house went through, 9 months after his death and some 6 after probate was granted

xylophone

As they are all over 18, I don't think the council would consider them for housing

But the boys are still in full time education, their sister ( who is not in any way bound to pay for their keep) is unemployed and a lump sum of £40000 will not last long after paying rent, council tax, utilities, insurance, food, travel costs etc?

I don't know whether the council would help but it would be worth a try?

Mojisola

xylophone wrote: »

I don't know whether the council would help but it would be worth a try?

Always worth asking but I don't think they'd stand a chance.

xylophone

Always worth asking but I don't think they'd stand a chance.

https://forums.moneysavingexpert.com/discussion/comment/56673965#Comment_56673965
post 1

Difficult to see why this person would be more deserving?

BurnleyBob

xylophone wrote: »

But the boys are still in full time education, their sister ( who is not in any way bound to pay for their keep) is unemployed and a lump sum of £40000 will not last long after paying rent, council tax, utilities, insurance, food, travel costs etc?

I don't know whether the council would help but it would be worth a try?

The sister is unemployed, so likely to be claiming at least JSA, brothers are in receipt of Income Support, which as with JSA after six months is also means-tested and though the OP didn't say so, s/he could also be claiming means-tested state assistance given their part-time working status.

If their circumstances remain the same then once the house is sold they instantly wouldn't be able to claim a bean between them in means-tested benefits until they spent down to under £16K apiece.

An alternative but unlikely scenario from the OP's posts is that they do acquire a £30K loan from somewhere to pay off the bank. The DWP will discover the equity they each have in the property and would push the two non residents to liquidate their share. For them not to be penalised would require at least two of the other three not to agree to a sale.

Mojisola

xylophone wrote: »

https://forums.moneysavingexpert.com/discussion/comment/56673965#Comment_56673965
post 1

Difficult to see why this person would be more deserving?

The council will look at older people's needs differently to young, healthy adults.