am I entitled to housing benefit?

centralpark

I am a single parent in temporary accomodation. My situation is a bit complicated in that I am named on a mortgage of a property I used to live in with my ex husband. Neither of us could get the other off the mortgage and the house is in negative equity. The agreement was that the house would be rented (no profit) until it woukd sell for enough to repay the mortgage (no profit). My mother has been paying the mortgage and I have been working for her ad hoc in return. Thus my income includes 600/month that I never see. Aside from this I am living off tax credits and child benefit. I need to thonk about finding somewhere to live but im nervous about whether I qualify for HB as I couldnt afford rent otherwise. Any help really appreciated and I cant live in the marital home before anyone suggests that. Thanks

Own_My_Own

So the house isn't rented out yet ?

Is the £600 half the mortgage ?

If it's empty why aren't you living in it ?

centralpark

No that is the full mortgage. I stupidly signed divorce papers saying I would be fully liable for the house! I was living in the house with a subsequent partner but he came abusive and im terrified of him. I moved to the area with my ex husband but it isnt my neck of the woods. I have no family or friends there and no support. CAB spoke to me about harrassment orders or some such thing but it isnt as simple as that. My ex has loads of friends and family there and I dont feel I can return. Flippin hoise has been nothing but a millstone.. I have the paperwork to prove that I havent been paying the mortgage in the annual statement, plus a recent valuation showibg the negative equity and also my divorce papers showing what idiotic terms I agreed to. Could any of this be taken into account for a claim for HB?

mummyroysof3

If you let them reposes the house would you owe a lot?

centralpark

Yes. I have also been advised to go bankrupt. Not keen to do that either. Im happy to repay what I owe. Given tine to do it. It's just stopping me from being able to move on with my life being tied there...

lld01

Experts will be along at some point to clarify, I'm sure, but if you are making steps to sell the property it will be disregarded for (I think) 26 weeks.

If in negative equity then this will result in the value of the capital being nil, so it shouldn't affect your claim.

I'm not sure how any rental income would be treated

centralpark

Thank you very much.. that's a small light at the end of the tunnel

BigAunty

centralpark wrote: »

Yes. I have also been advised to go bankrupt. Not keen to do that either. Im happy to repay what I owe. Given tine to do it. It's just stopping me from being able to move on with my life being tied there...

Did the advice come from a free expert debt advice charity?

Why not get a second opinion from another advice charity and run past your options on the Debt Free wanabee board?What is stopping you from bankruptcy if this was recommended by an expert? If your mother could not support you, you'd perhaps have no choice - is it right that anxiety or pride in debt management has resulted in the impact of your decision being met by her?.

There is a poster called Housing Benefit Officer who can clarify your HB options and whether the £600 a month income from your relative could cause an issue (or whether it is classed as a gift).

Shelter has good info on your rights and options with sections on relationship breakdown, domestic abuse and how to prevent repossession and deal with mortgage arrears.

Consider contacting Womens Aid - they are experts at dealing with women experiencing domestic abuse, can help with benefits advice, staying safe, etc.

Do you qualify for the Support for Mortgage Interest scheme or is this dependent on you staying in the property that you don't wish to live in?

mummyroysof3

It does seem a shame to hang into it if you don't want to live there and aren't going to rent it out and make any money from it

centralpark

I don't really have any choice but to hang onto it until it is no longer in negative equity. Ive been throuhh the banktuptcy options several times with strp change and national debtline but im really not keen. For a start I am on a joint mortgage and my bankruptcy would have repercussions for my ex husband. In addition I don't owe that much- about 10000. Im not sure this is an amount of money worth going bankrupt for. So.. can we please move on from bankruptcy as uts not what my question was... the only thing I can do with the house is rent it out to cover mortgage until I can sell it for enough to repay the mortgage and any associated fees as per the arrangement I have already agreed to with my mother and my ex husband. Im hoping to set up my own business in the not too distant future at which point I will hopefully be in a position to pay my own way without benefits and to start repaying my debts. Its just in the here and now im struggling. Tha ks

Voyager2002

Is the house currently let? If so, what happens to the rent that it brings in?

As posted above, normally you cannot receive Housing Benefit nor LHA if you own a property you are not living in, but this can be disregarded if you are taking all reasonable steps to sell it. I think you need to visit your Council's housing benefit department, and speak with someone senior to find out whether this would apply to you. Note that the term 'Housing Benefit' now only applies to help with rent paid for social housing: if you have a private landlord then they call it LHA.

Another thought: you say that you "stupidly" agreed to unfavourable divorce terms. Did you have legal advice? If not, then it is fairly simple to overturn the agreement.