BH when own a other house

darren_clarke

tried posting in HB section but it all seems to be locked

does any one know what happens if someone wants to rent some where and get housing benefit, but they own a house which they are renting out

Basically my in laws need to move from liverpool (where there house is) to cornwall, they have tried selling it but it wont sell

the reason they are moving is because my M inlaw is blind and F in law is unfit for work and has to care for his wife who cant see, so are struggling to pay the mortgage

the mortgage is £400 a month and they have been told they can get £600 for there house,


does any one know how this will effect a HB claim in cornwall

PasturesNew

Why Cornwall? There's nothing there.....

In the main, they'd be expected to use the rent from their house to pay for the house they want to rent. Rent received is seen as income.

Old_Git

can they sell the house .

darren_clarke

we live in cornwall, they ahve tried selling there house, but they need to sell it for whats its worth to clear mortgage

if after paying the mortgage there is £200 left, does this get counted or the whole £650

Building_Surveyor

don't know by fact but on the face on it i would say no chance!! everyone would be doing it. Buy a house, rent it out, then claim benefits for another property??? think this would make any tax payers blood boil if we were expected to subsidise this if such a scheme exists.

why would they need to claim housing benefit if they are receiving rental income?????????

Think there is help to cover interest on mortgage - perhaps look into that. but if they are receiving rent every month that's classed as an income

Old_Git

darren_clarke wrote: »

we live in cornwall, they ahve tried selling there house, but they need to sell it for whats its worth to clear mortgage

if after paying the mortgage there is £200 left, does this get counted or the whole £650

They need to drop the price if it wont sell .If they still owe on the mortgage after selling most lender will allow a payment plan to repay what they still owe .

sandsni

AFAIK If they own the house but live elsewhere it will be classed as capital for benefit purposes so would probably put them over the limit for eligibility.

thelem

I don't really understand why they are moving. You say it's financial, but I can't see how it helps their finances.

Have they applied for support for mortgage interest? https://www.gov.uk/support-for-mortgage-interest/overview

Werdnal

Do they even know if mortgage will consent to letting - they may agree, but will add extra costs and clauses, but they may also refuse, meaning they would have to change to a BTL loan with higher costs anyway.

They would be better off dropping the price to sell and starting over if they want an easier life without the added stress and hassle of letting, particularly if they are already in ill health and getting on in years.

Even in this market, things are selling if the price is right ... perhaps theirs isn't.

Fire_Fox

If the house is not selling it is overpriced for the current condition and market, research land registry sold prices for the street and area to see if the price is realistic.

Not meaning to be rude but if wife is blind and husband cannot work what state is the house in? Is it decluttered, sparkling clean and in reasonable decorative order?

Lastly are they eligible to claim Support for Mortgage Interest?
http://england.shelter.org.uk/get_advice/help_with_housing_costs/support_for_mortgage_interest

maninthestreet

Liverpool to Cornwall? Big city to basically an isolated, rural county.
Public transport may be a big issue....