will housing benefit be paid

moneybags_3

If my daughter who is currently unemployed inherits a house with a very small mortgage left on it, will housing benefit be granted for this mortgage. Hopefully if this situation arose she will be in some type of employment but if not would she get help with the mortgage.

BigAunty

Will she occupy it? Does she have any kids?

AFAIK, She won't inherit a mortgage...she has to qualify for one according to lender requirements. How much is outstanding?

Here is one scheme to help homeowners struggling to pay their mortgage. It is time limited to 2 years for unemployed people and doesn't kick in for the first 13 weeks anyway. Also, I'm not aware if it is payable in the circumstances you outline but other posters may know.

http://england.shelter.org.uk/get_advice/help_with_housing_costs/support_for_mortgage_interest

EDIT - as a later poster has stated, she would not qualify for housing benefit - that is only for tenants. You would have to look into schemes like mortgage rescue, support for mortgage interest or similar.

McKneff

Housing benefit is for people who rent.

System

Bottom line is if there is insufficient funds in the deceased's estate to pay off the mortgage then the executors will need to sell the house to cover it (unless your daughter can raise a mortgage to pay off the original mortgage). In that situation then your daughter will then get the remaining money which will probably put her well clear of any means tested benefits.

princessdon

She would need to get a mortgage (with no income this is unlikely)

If she managed to get a mortgage they would pay interest only at 3% any extra shed have to pay (eg capital or interest over the 3%).

Then there is a 13 week wait

[Deleted User]

most lenders insist that you take out life insurance for the term of the mortgage when they provide a mortgage,so it may get paid off with that

moneybags_3

Thanks for all the replies. The relative who owns the house was refused life assurance because of existing health problems. The remaining mortgage is approx £20,000. My daughter is 26 years old and is looking for work but I was curious as to how she would manage if she was unemployed if and when the event occured.

paddedjohn

moneybags wrote: »

Thanks for all the replies. The relative who owns the house was refused life assurance because of existing health problems. The remaining mortgage is approx £20,000. My daughter is 26 years old and is looking for work but I was curious as to how she would manage if she was unemployed if and when the event occured.

If and when she inherits the property she will either have to get a mortgage of her own to pay the £20,000 off or the property will have to be sold and then the residue will come to her.

BigAunty

paddedjohn wrote: »

If and when she inherits the property she will either have to get a mortgage of her own to pay the £20,000 off or the property will have to be sold and then the residue will come to her.

Does this effectively mean the lender repossesses it because the mortgage is unpaid, flogs it off cheap as chips at an auction, hits the person who inherits it with the unpaid mortgage sums until it is sold, plus their fees and the auctioneers fees, leaving the OPs daughter with next to nothing?

Or does the person inheriting it get a period of grace in which to sell it on the open market?

midnight_express

Either the daughter would have to pay off the mortgage or the executors would sell the house and the daughter would inherit the residue of the estate. She would no longer be entitled to any means tested benefits. Funeral costs and debts always have to be paid off first before beneficiaries recieve anything.
You can't inherit a mortgage.

princessdon

It it was my daughter and being honest I'd pay the £20K and allow her to have the house outright (once estate fees are settled).

She won't get a mortage on JSA so this can't really happen.