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am I entitled to housing benefit?
Comments
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centralpark wrote: »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.
Okay, I appreciate your reluctance to go down the BR route and don't want to keep hammering away at this as an option. I'd just like to point out that it might be better not to view your potential bankruptcy as a direct attack on your ex husband's credit record, for example, but more the logical conclusion on his reneging on paying for a joint owned asset.
Joint ownership has a joint/several liability. Yes,the divorce papers give you the sole responsibility for it but does it actually trump the contract you have with your lender where the responsibility is joint? The papers seem unenforceable to me but I am not legally qualified.
You only need to owe about £750 to be eligible for BR so 10k, is indeed, well over the minimum threshold.
Renting it out is a non-starter.You will not get permission from the lender to let out your property if its in negative equity. Any rental income would affect means tested benefits.
Being a landlord carries with it big and potentially expensive responsibilities and risks - what happens if you get tenants in that stop paying the rent? what happens if you don't secure permission to rent the property from the lender or it has been unoccupied for a long period and something happens to the property like a fire or flood - your insurance will be valid if you haven't got landlord property insurance or the property is unoccupied as there are clauses about empty properties. What happens if there is an expensive repair required for the tenants, such as a new boiler? You've got no contingency.0 -
Who is living in the property at the moment ? If your ex-partner is still living in it, is he paying anything towards the mortgage ?0
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No he isn't. But he is sorting out a few rennovations etc to prep it for renting.0
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centralpark wrote: »No he isn't. But he is sorting out a few rennovations etc to prep it for renting.
So do you intend to rent it out until its value is such that you will no longer be in negative equity and can sell it to settle your mortgage and other debts ?0 -
As I have already stated. I intend to rent it out until it will sell to cover the mortgage. I am not intending to use it to pay off my other debts. Those I will pay off through hard graft. The situation with the house is simply that I can't get rid of it without having to pay the bank back on top. Im sure im in a more fortunate position than some though because at least the rent will cover the mortgage.0
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Of course you can receive Housing Benefit if you own a property.
As this property is in negative equity it has no value.
Any rental payment could be disregarded if the rent is used to pay the mortgage and expenses for letting the property.These are my own views and you should seek advice from your local Benefits Department or CAB.0 -
centralpark wrote: »No he isn't. But he is sorting out a few rennovations etc to prep it for renting.
Do ask on the Housing Forum the likely risks and issues from renting out a property that doesn't have permission from the lender to switch from a residential only mortgage to a buy to let one.
You are extremely unlikely to get permission from the lender to let out a property that is in negative equity because its far too risky a proposition from a repossession perspective.
I can see why your ex would want to rent it out rather than suffer the indirect consequence of your declaring bankruptcy but that's just potentially opening up another can of worms.0 -
Housing_Benefit_Officer wrote: »Any rental payment could be disregarded if the rent is used to pay the mortgage and expenses for letting the property.
So HB calculations will ignore all the mortgage, interest and repayment parts?
To the OP - AFAIK, from a tax return perspective, the HMRC will only disregard the interest only part of the mortgage as a valid business expense, the repayment part is not exempt, (plus expenses like the letting agent fees, repairs, landlords insurance, etc, are legitimate). Is there likely to be any profit if the repayment part is excluded or do you only have an interest only mortgage anyway?0 -
If I don't get permission I won't be doing it! I don't have a dishonest bone in my body - unfortunately!!0
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It is a capital and interest repayment. We werent allowed to go interest only. Erm im not sure what portion is what though.0
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