BH when own a other house

culpepper

Do they have a spare room they could use to take in a lodger?
That would give them some tax free income to help cover their mortgage without the need to move.

Davesnave

There are smarter moves than Liverpool to Cornwall, especially if you are disabled. Living there, you should know that.

Lots of old people retiring to the county = high demand for services. Low wages and old demographic means less money to pay for them.

In short, Cornwall services are a bit of a disaster area!

Mojisola

darren_clarke wrote: »

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

Have you checked to make sure they are receiving all the benefits and other help they are entitled to?

Have they have an assessment by Social Services and Occupational Therapists?

I can see why you would them to move nearer to you - it's a nightmare trying to cope with relatives with health problems from miles away.

zzzLazyDaisy

To answer your question, the rent is income and is taken into account in the calculation for HB.

The mortgage is a debt and is not taken into account.

So in essence, they are expected to use the income they get from the house in Liverpool to pay their rent in Cornwall. And that makes sense because otherwise, in essence, the Cornish local authority would be paying the mortgage on their Liverpool house.

There are some exceptions to this rule, such as in a relationship breakdown where the other partner has remained in the house and the house is actively being marketed for sale, then the leaving partner may get help with rent temporarily, but that is not the case here.

It is hard, but if they wish to move, they need to sell the house which may mean dropping the price and finding a way to raise money to pay off the negative equity.

Alternatively, they need to liaise with the health and social services in Liverpool, to make sure she is getting all the support she needs. She may be entitled to DLA, depending on how her condition affects her mobility and care needs, and this in turn may lead to carers allowance / IS for him and increased help with housing costs.

Unfortunately there are no easy answers.

maninthestreet

zzzLazyDaisy wrote: »

To answer your question, the rent is income and is taken into account in the calculation for HB.

The mortgage is a debt and is not taken into account.

So in essence, they are expected to use the income they get from the house in Liverpool to pay their rent in Cornwall. And that makes sense because otherwise, in essence, the Cornish local authority would be paying the mortgage on their Liverpool house.

There are some exceptions to this rule, such as in a relationship breakdown where the other partner has remained in the house and the house is actively being marketed for sale, then the leaving partner may get help with rent temporarily, but that is not the case here.

It is hard, but if they wish to move, they need to sell the house which may mean dropping the price and finding a way to raise money to pay off the negative equity.

Alternatively, they need to liaise with the health and social services in Liverpool, to make sure she is getting all the support she needs. She may be entitled to DLA, depending on how her condition affects her mobility and care needs, and this in turn may lead to carers allowance / IS for him and increased help with housing costs.

Unfortunately there are no easy answers.

Does DLA still exist now?

darren_clarke

cheers everyone for answering, sorry, took me so long to get back as computer has been broke

i will try to answer a few questions

the house is up for £150k as this is what they are worth for up there

the house is in very good condition, doesnt need any work doing to it

my father in law works, but has been told to pack it in by the doctor, as his knees are gone and is diabetic, but cant afford to,

the whole point of renting it out, was to wait till the market was better to sell,

they all ready get all the benefits, they all ready get the DLA and carers allowance, just owe that much on there house, they cant afford to sell it

Werdnal

darren_clarke wrote: »

the house is up for £150k as this is what they are worth for up there

So it might be "what they are worth" but this is a buyer's market, and if there is a glut of properties around the same price range, they need to make theirs the most attractive any any way they can.

Would you care to post a Rightmove link so you can get impartial views on whether it is actually worth that much, or anything that can be done to improve the listing, presentation etc? Be warned, members can be critical and very blunt, but someone looking here would give you a similar review to someone looking to buy, as they will be equally objective on whether the price is right and its good value.

Having been a LL myself for 13 years, of a property within 20 minutes drive away, and having both good and very bad tenants in this time, it can be worthwhile, but it can also be a costly and stressful nightmare - do you really want to inflict this on your parents? with a property 100's of miles away that they cannot keep an eye on themselves, and you cannot help manage for them?

Reduce price and sell would still be my advice, but a link to the property might help others advise you.

Thrugelmir

darren_clarke wrote: »

the whole point of renting it out, was to wait till the market was better to sell,

What do you think is going to happen to improve the property market significantly?

darren_clarke

no idea, but this is what they where saying, personally i think they should just cut there losses with it, but its a reason why they cant come down to cornwall,