Housing benefit, redundancy and being a landlord

MisterMotivated

Hi all,

I have a quick question as I'm being made redundant next month. I'm renting a house at the moment, but I also have a buy to let property in another part of the country (mortgaged, with equity around £23,000). Does anyone know if I'll be able to claim housing benefit while renting where I currently live, or if the BTL (tenanted for at least another 8 months) will mean I can't claim anything? I don't make much from it, it's more of a future retirement plan. It's also not possible for me to move into the BTL house myself as the lease has been renewed recently for another year.

Any advice would be much appreciated, as searches online tend to bring up information on being a landlord whose tenants are claiming housing benefit, etc.

pmlindyloo

MisterMotivated wrote: »

Hi all,

I have a quick question as I'm being made redundant next month. I'm renting a house at the moment, but I also have a buy to let property in another part of the country (mortgaged, with equity around £23,000). Does anyone know if I'll be able to claim housing benefit while renting where I currently live, or if the BTL (tenanted for at least another 8 months) will mean I can't claim anything? I don't make much from it, it's more of a future retirement plan. It's also not possible for me to move into the BTL house myself as the lease has been renewed recently for another year.

Any advice would be much appreciated, as searches online tend to bring up information on being a landlord whose tenants are claiming housing benefit, etc.

The house you own will be treated as capital. SInce you have equity of £23000 this will take you over the limit for claiming HB. (£16000)

The rent (if you were eligible ) would be treated as income but deductions are made for mortgage payments and sometime other expenses.

Link for you:

http://www.cheshireeast.gov.uk/benefits_housing_council_tax/claiming_benefits/capital_and_income.aspx

skater_kat

theres another thread going on which is about disreagrding property value if it is up for sale or you are taking action to get it for sale

skater_kat

https://forums.moneysavingexpert.com/discussion/4989101

skater_kat

but if it is up for sale and the HB department ignore its value, you are still getting an income from it so the rental money will be taken into account if you make a HB claim

tomtontom

skater_kat wrote: »

but if it is up for sale and the HB department ignore its value, you are still getting an income from it so the rental money will be taken into account if you make a HB claim

The OP describes it as a future retirement plan, so it is clearly not up for sale.

bloolagoon

It has an 8 mos AST left so unless they sell with a tenant then it's not an option to say its up for sale.