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Janetta

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HappyMJ

Can you switch to interest only? At least for the short term it might help a bit with cash flow....unless you already are and at 5.95% interest which is an awful rate and really you will find it difficult to achieve that as a gross return on your property. £800 sounds about right. Will the mortgage company allow this? How will you meet the shortfall?

Personally just looking at this post you will be better off selling the property and paying off all your arrears and renting with the rent paid for by HB.

Janetta

Yes switched to interest only, for the short term. And may have to sell.

I was looking for responses, from the perspective of the association and why they have not put anything in writing to me - what could be there thoughts in terms of my request for a lease / rent equal to my benefits or similar ...

HappyMJ

Janetta wrote: »

Yes switched to interest only, for the short term. And may have to sell.

I was looking for responses, from the perspective of the association and why they have not put anything in writing to me - what could be there thoughts in terms of my request for a lease / rent equal to my benefits or similar ...

Your benefits far exceed £800 per month. My partner before we moved in together was only on ESA, HB and CTR with no children and she was getting over £1,000 per month. You also get payments for your children which you could lose or be reduced. If universal credit were to affect you sooner rather than later the capital you have in the property will reduce your claim to nothing. They won't match your benefits. If you rent your property out the equity you have will start counting as capital in the calculations they make (it will stop being excluded as it is now) so you'll most probably lose all of your benefits and still have to pay the mortgage. I just can't see that as a viable option. Selling paying off the arrears use up most of the remaining equity on essentials leaving £6,000 or less and you will remain on full benefits.

Don't forget all the non cash benefits you get such as free prescriptions, free eye tests, free dental, the annual £140 warm home discount you get on your electricity bill, etc...etc...it all adds up. Your children probably get free school meals and that in turn entitles them to further subsidized school things such as free school trips. They would lose that. University grants are based on your claim to tax credits and their entitlement to free school meals and if by that time you're on universal credits getting nothing then they don't get a grant.

Janetta

Thanks Happymj, yes I am aware.
Just thought they would come up with a good long lease deal. Which would give me time to get better & return to some sort of work in the future. Yes selling asap looks inevitable as the 26 disregarded period is approaching - i understand this can be extended if demonstrate you are trying to sell.

Was looking for views/ opinions / thoughts on the perspective of the association -given what they told me about clients being found etc Sounds awful but just was thinking as they know how much i get in benefits they could equal or better it in lease/ rent .
Thanks for responding .

Janetta

Quick update Association offered me £1000 per month which would have impacted my benefits significantly - offer declined. House remains up for sale with the 26 weeks disregard looming in mid September . My only option now is a forth coming property auction in Sept. Just want to get rid - missed the July auction and no auction in August.As long as I get the mortgage costs. As I asked if there was any way prior bids could be considered before the auction day ( as i don't want to loose benefits, hassle to reapply, assessment etc we are also switching to universal credit in September )
I know that I am allowed to have savings etc to £16,000 and pray it doesn't go over.
Does anyone have experience/ advice about prior bids before it gets to the actual auction?

At the moment i am on ESA income related and once the mortgage is paid back anything left is savings- how much would be deducted from the ESA ? And what would I be left with if i had the following savings? My ESA is currently £373 per fortnight .

A) £5,000 - ESA payment would be reduced by ........... Per fortnight you would receive

£10,000
C)£15,000

Thank you

HappyMJ

Janetta wrote: »

Quick update Association offered me £1000 per month which would have impacted my benefits significantly - offer declined. House remains up for sale with the 26 weeks disregard looming in mid September . My only option now is a forth coming property auction in Sept. Just want to get rid - missed the July auction and no auction in August.As long as I get the mortgage costs. As I asked if there was any way prior bids could be considered before the auction day ( as i don't want to loose benefits, hassle to reapply, assessment etc we are also switching to universal credit in September )
I know that I am allowed to have savings etc to £16,000 and pray it doesn't go over.
Does anyone have experience/ advice about prior bids before it gets to the actual auction?

At the moment i am on ESA income related and once the mortgage is paid back anything left is savings- how much would be deducted from the ESA ? And what would I be left with if i had the following savings? My ESA is currently £373 per fortnight .

A) £5,000 - ESA payment would be reduced by ........... Per fortnight you would receive

£10,000
C)£15,000

Thank you

You can negotiate with the relevant agencies to extend the disregard if needed.

A) Nothing, you're allowed £6,000 with no affect to your benefits.

£1 weekly income for every £250 or part thereof exceeding £6,000...so £4,000/£250 is deemed income of £16 per week. You'd probably lose this £ for £ each week. So £32 per fortnight.

C) Same as above £9,000/£250 is £36 so you'd lose £72 per fortnight.

Every now and again you can advise that your capital has fallen by £250 (as long as you actually do spend it on needs and essentials and not just given it away) and you get an extra £1 per week.

If your equity achieved after all the fees and moving expenses have been repaid exceeds £16,000 you will lose all of your benefits but not for long you'll be deemed to be spending it at quite a rapid rate. With children...if you were to have £20,000 it won't take long to get through £4,000 and be below £16,000 again. Keep receipts for anything over about £10 just to prove to them you haven't been hiding it under the mattress or giving it away. You can buy new furniture if yours needs replacing that's not a problem. I'd take photos of anything you might want to replace before selling it for scrap. When you get below £16,000 get your application in again.

Janetta

Thank for your for replying appreciated

Reapplying for ESA, would I have to get all new letters, approach doctors again for supportive letters etc

Then child tax credits ( dont work ) would i just tell them and then reapply ?

I have a overdraft of £6500 which if any monies goes into it - that money is lost ... Dont want to be done for depravation of capital)

When I applied for HB I gave them a copy of bank statement which show overdraft - so what happens if i was to get more than £16000 then it went into that account which then brought me under £160000 ? Would I get in trouble ?

Thanks again

Algar

Would I get in trouble ?

No you would not, an overdraft is a very expensive form of borrowing, it makes sense to get rid of it.

Janetta

Thanks for that

However, when reapplying for ESA income related would I have to collect all supporting documents again from Doctors letters etc - would it be a totally fresh claim. ??
Thanks for your responses