Housng benefit questions! HELP!

hButterflyH

I currently own my own home but having seperated from my husband and struggling to pay it off on my own, I am having to move to rented accomodation. The rent will be less than my mortgage. I have negative equity in the property and intend to stop paying it in order to save a deposit to rent. I will then either be repossed and will volunterily surrent it back to the bank.

Based on my income I would qualify for housing benefit. Not the full amount as I work but about half of the rent.

1) Can I claim having moved from owned to rented?

2) Can I claim whilst I still own my house even if it is on the market and I am not paying the mortgage on it?

3) I need a two bed house for myself and child but may have to rent a 3 bed. I know I couldnt claim the full amount for a 3 bed as I dont need it but I assume I could qualify for the full amount of a two bed?

Thanks for your help

BigAunty

Read the Shelter website about how to deal with arrears and prevent repossession. Your intention to voluntarily surrender it is the least recommended course, according to their site.

There are some schemes available to prevent repossession, including one where a social housing landlord buys the property and gives a tenancy to the former tenants (not sure if this scheme is still in existence). See the Shelter website and call them.

See the following link for information on housing benefit for property you own but do not occupy

http://www.dwp.gov.uk/publications/specialist-guides/technical-guidance/rr2-a-guide-to-housing-benefit/working-it-out/income-and-capital/

For HB, a tenant can live in any cost/any size property they like but will only get the rate that their household size/mix qualifies. So, yes, you can live in a bigger or smaller property than the rate but must make up any shortfall between the rent and your HB out of your other income (employment/benefits).

Are you on benefits or in employment?

Many councils run deposit guarantee schemes for tenants in housing need/low incomes. If you are likely to lose your property, speak to your local council homeless prevention team.

Caz3121

hButterflyH wrote: »

3) I need a two bed house for myself and child but may have to rent a 3 bed. I know I couldnt claim the full amount for a 3 bed as I dont need it but I assume I could qualify for the full amount of a two bed?

You need to look at the LHA rates for your area, you will qualify for up to the 2 bedroom rate.
You may find a 3 bedroom property for this rate or you may struggle to find a 2 bedroom within the rate and need to add extra to it

Your current property should be ignored whilst it is up for sale