Shared house holder benefits

cyclonebri1

BigAunty wrote: »

What tax threshold?

I'm just checking that you aren't referring to the Rent A Room scheme - that tax free sum is only applicable to live in landlords.

Be aware of the impact of potential capital gains tax if you sell up. The HMRC website has a guide to help you calculate this or the forum members on the housing forum.

??? No , Don't even know what that is, just my personal allowance.

cyclonebri1

rogerblack wrote: »

If he's a part owner - and action could be taken by the other owner to evict or take posession in other ways if rent was not paid - there may be a liability - in some circumstances I'dhave thought - leading to possibility of HB.
You can apply and see what happens - accurately stating all the circumstances.

As I said it's family, it won't get to that, even if I do get the inference that sometimes you have to be cruel to be kind.

missbiggles1

How is this any different from a shared ownership place where the claimant owns half and rents the other half? You can certainly claim Housing Benefit (LHA) in that situation.

http://england.shelter.org.uk/get_advice/housing_benefit_and_local_housing_allowance/what_is_housing_benefit/local_housing_allowance

real1314

rogerblack wrote: »

If he's a part owner - and action could be taken by the other owner to evict or take posession in other ways if rent was not paid - there may be a liability - in some circumstances I'dhave thought - leading to possibility of HB.
You can apply and see what happens - accurately stating all the circumstances.

HB regs say you cannot claim HB if you are a joint owner and that's where it ends.

Another poster has mentioned shared-ownership e.g with a LA or HA - that's different as it's defined as "Shared" and is specificaly allowed in HB regs.

GirlFromMars_2

cyclonebri1 wrote: »

Just trying to help out a close family member here.

He lives in a bungalow jointly owned by me and him. No mortgage.
It was left to us. The agreement was he could live in it for 1/2 rent for as long as needed. Pays me £220 per month in half rent

He is now in a spot of difficulty. He is on ESA and in the support group. Savings are under the min threshold I think if that matters.
He does get a private pension of around £210 per month.

Can he claim anything against the rent or do I have to give that up to help him out? I'm unsure due to the family involvement.

I don't see any possibility of him working again.

Having been in a jointly owned inherited housing situation with my brother I can sympathise!

He should put in a claim for PIP if appropriate. If he is awarded PIP that would also open up his entitlement to the Severe Disability Premium on ESA which along with PIP would greatly increase his income.

Someone mentioned earlier that you need to be aware of the Capital Gains Tax problem you are creating. The longer you own the property but don't live there, the more Capital Gains Tax you will owe from your share once you do finally sell up. The person who lives there will have Private Residence Relief and won't owe any Capital Gains Tax. So if you let him live there rent free you are not only forgoing the rent, but remember you will lose a chunk of money once you sell up as well.

If you are on a low income you may be entitled to benefits yourself as your share of the property would be disregarded as Capital for Benefit purposes as long as a close relative with a disability is living there. So if you were to decide to let him live there rent free you may be entitled to Housing Benefit/LHA yourself to rent somewhere else.

In the end I decided to sell my share of our jointly owned property and buy my own Shared Ownership property instead. I bought with a Housing Association that is specifically set up to help people with disabilities, the rented portion of my home is payed by Housing Beneift. The scheme also sets things up so that repairs are the responsibility of the Housing Association so that I don't have to deal with costly repairs myself. It may be worth looking into a scheme like this if you do decide to sell up, and he cannot afford/cope with home ownership by himself.

dippy3103

How many bedrooms? Could you not put a lodger in your half?

missbiggles1

It might be worth investigating the possibility of his buying you out with a mortgage paid by SMI. Although uncommon, this organisation specialises in this situation for disabled people so could be worth a call.

http://www.mysafehome.info/aboutus_buyer.php

rogerblack

missbiggles1 wrote: »

It might be worth investigating the possibility of his buying you out with a mortgage paid by SMI. Although uncommon, this organisation specialises in this situation for disabled people so could be worth a call.

http://www.mysafehome.info/aboutus_buyer.php

New mortgages taken on while on benefit will usually not be payable as I understand it.

xylophone

jointly owned by me and him

Do you own it as joint tenants or as tenants in common?

http://www.findlaw.co.uk/law/property/buying_property/500189.html

If as joint tenants, it would appear that

"all joint tenants have equal rights to possess the whole property."

missbiggles1

rogerblack wrote: »

New mortgages taken on while on benefit will usually not be payable as I understand it.

There seems to be exceptions for people with disabilities.

http://www.housingandsupport.org.uk/shared-ownership-homebuy-and-hold