Housing benefit, mortgage & seperation

runningems

My OH and I are separating. We have an interest only mortgage and after a recent valuation have around 5k equity in the house before any fees deducted. He cannot afford to move out and rent a flat (due largely to high credit card debts) leaving me in the house and I only work part time to look after our 2 children so cannot pay the mortgage on my own. I have been to the CAB and checked on line and I can claim housing benefit that would help me rent a 3 bed house. My husband has said tonight he does not want to sell the house but wishes to remain in it until he retires in 2 years and gets his police pension whereby he can buy me out.
My question is can I leave the house and still claim housing benefit with my name on a mortgage? I will obviously seek legal advice to ensure I retain my share of the house. I will be the primary carer for the children so they will come with me. The only other way round this is to take the legal route but we have enough debt I don't see the point in adding to this.

BigAunty

Can't he find a guarantor, a friend or relative who will guarantee his rent, which is the main way those with poor credit records can get a tenancy or move in as a lodger with someone he knows?

Is it a realistic proposition for him to buy you out using pension funds if he can't actually do this now with what is presumably a higher salary? How much is owed on the mortgage, what is the length of the remaining mortgage term and how much will his pension be?

Pop over to the debt free wanabee board who will give you pointers on how to sort out your debts.

Are you in the position to remain in the property and pay all or some of the mortgage?

runningems

It's a case if not having the funds as opposed to having a poor credit record. He won't move in with a lodger or go for anything less than he thinks he's entitled to i.e a 3 bedroom house equal to what he has now.

He is a police officer so from his commutation he will be able to buy me out.

I would love to stay in our house for the sake of the children but I won't be able to afford the monthly payments, I'm not sure what you mean by part of the mortgage? Are you thinking he might make up the difference?

BigAunty

You could seek legal advice to understand if you could gain an occupation order to guarantee you occupancy of the property until your youngest child turns 18 and whether the matrimonial settlement could help you afford to stay in the property (I don't know). There is information on the Shelter website that will detail your rights and his obligations (see the relationship breakdown pages).

You can negotiate a child maintenance settlement between yourselves but if not, the CSA generally expects the non-resident parent of 3 children to pay 25% of their net salary to the parent with care of the children. This is regardless of his debt obligations and future rent payments elsewhere which are ignored in the calculation, those expenses won't influence what he is due to pay you..

Also, have you checked your benefit entitlements as a lone parent? Go to the Turn2us online benefit calculator.

You may find it is £300 plus a week in child tax credits, etc,, plus a sizeable council tax discount, more if you are working as you may get working tax credits plus your employment income, plus any child support payments are ignored and are paid on top of benefits rather than instead of them.