Housing benefit and mortgages

101pab

Hi,
My wife and I are seperated by her choice. She moved out a year ago but we had not been together for several years before after she met someone at work. We are trying to be amicable because of our children, even though her life choices have often turned out to be disasterous I have helped out for the children even though it is difficult. Our home is currently in negative equity so it is not an option to sell easily and she does not want to live there, but she wants to move into somewhere of her own. However, as she is nominally still partially responsible for our mortgage, even though I have paid for it on my own for years with no help, she says she can't get any help (either renting or help to buy) because of it. Where do we stand? We certainly can't live together and she does not want our house. What I understand I would have to apply to have the mortgage on my own which is unlikley to be accepted. I can't afford to give her much help so we are in a bit of a pickle. Advice would be gratefully received.

Caz3121

If the house is in negative equity then she will not be assessed as having capital so can claim housing benefit for renting

BigAunty

Caz3121 wrote: »

If the house is in negative equity then she will not be assessed as having capital so can claim housing benefit for renting

But does the property have to be up for sale or is this not a condition?

To the OP - see the Shelter section about relationship breakdowns and info for distressed homeowners at risk of arrears or repossession.

Housing_Benefit_Officer

BigAunty wrote: »

But does the property have to be up for sale or is this not a condition?

To the OP - see the Shelter section about relationship breakdowns and info for distressed homeowners at risk of arrears or repossession.

No - if it has no capital value it has no capital value - we can only disregard the capital value of a property if it has a capital value.

We would look at the value - then look at the outstanding mortgage - if it has negative equity it has no value.

However with the rising house prices we would review it every year or so as at some stage it will have a value.

Charley2009

Hi- this is my first post and I hope I am on the right bit. Apologies if not.
I wondered if anyone can help? My husband lefty self and my daughter 3 years ago. I have been paying the mortgage on my own until June 2013 when I was in a serious car crash and ended up in arrears. Consequently I have lost my job, ended up on ESA and have had to sell the house. We agreed a split of 75/25% to me and I will receive appx £90,000. Will this mean that I will not be able to get ESA or even help with council tax on the rented accommodation we are about to move in to?
I know there is a benefits cap but I sold to have money to rent, am paying double what my mortgage was and am concerned as to how long my money will last if I am now not entitled to any help!
Please can anyone advise me?
Thank you in advance.

Caz3121

Charley2009 wrote: »

Hi- this is my first post and I hope I am on the right bit. Apologies if not.
I wondered if anyone can help? My husband lefty self and my daughter 3 years ago. I have been paying the mortgage on my own until June 2013 when I was in a serious car crash and ended up in arrears. Consequently I have lost my job, ended up on ESA and have had to sell the house. We agreed a split of 75/25% to me and I will receive appx £90,000. Will this mean that I will not be able to get ESA or even help with council tax on the rented accommodation we are about to move in to?
I know there is a benefits cap but I sold to have money to rent, am paying double what my mortgage was and am concerned as to how long my money will last if I am now not entitled to any help!
Please can anyone advise me?
Thank you in advance.

Would probably have been better as starting your own thread but in answer to your question. Are you receiving contribution based or income based ESA?
Do you plan on buying another property with the equity? If so the money can be ignored for 26 weeks
I imagine £90k could cover your bills for a number of years and once it drops below £16k you can reapply for means tested benefits again (but in the meantime you should keep receipts for any major purposes as the decision maker will want to know whether it has been spent in order to receive benefits)

Out of interest did you look at SMI for help paying the mortgage interest before you had to sell?