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Capital own home possible rent impact on ESA (IR) PIP HB Ct

124

Comments

  • Janetta
    Janetta Posts: 123 Forumite
    Thanks again Housng benefit Officer.
    Do I still have to keep
    It up for sale ?

    FBaby, the property will be rented for two years with a housing association .
  • tomtontom
    tomtontom Posts: 7,929 Forumite
    Once the property is let the disregard will end - you can't have it both ways.

    I would be very surprised if the HA allowed you to market the property whilst they are leasing it from you.
  • densol_2
    densol_2 Posts: 1,189 Forumite
    No you count the whole mortgage payment for benefits purposes.

    For tax return purposes it is the interest only.

    OMG - thats absolutely outrageous !! Paying back capital whilst increasing equity and benefit advantage ! :mad:
    Stuck on the carousel in Disneyland's Fantasyland :D

    I live under a bridge in England
    Been a member for ten years.
    Retired in 2015 ( ill health ) Actuary for legal services.
  • bigbulldog
    bigbulldog Posts: 632 Forumite
    Part of the Furniture 500 Posts
    How did you get social housing while owning your own house as I thought that was a strict no no from all the councils plus your getting HB on top.

    As we were in the same boat,but we did not have negative equity,but we could not afford to live in the hse due to personal/financial/health reasons even though our house was up for sale the councils in our area would not entertain us until we were either homeless or in private rental,
  • Janetta wrote: »
    Thanks again Housng benefit Officer.
    Do I still have to keep
    It up for sale ?

    FBaby, the property will be rented for two years with a housing association .

    It has no capital value. You have stated it is in negative equity so being for sale it irrelevant in this case.

    If a property is for sale then the capital value is disregarded for 26 weeks or more if still for sale.

    One thing to beware of is any future rise in house prices that could take your property out of negative equity.
    These are my own views and you should seek advice from your local Benefits Department or CAB.
  • densol wrote: »
    OMG - thats absolutely outrageous !! Paying back capital whilst increasing equity and benefit advantage ! :mad:

    In this case the property has no value. It is in negative equity. If it is sold the o/p will still be in debt. If it is rented out for a few years and then sold when house prices have increased then the o/p may walk away without any debt.
    These are my own views and you should seek advice from your local Benefits Department or CAB.
  • bloolagoon
    bloolagoon Posts: 7,973 Forumite
    In this case the property has no value. It is in negative equity. If it is sold the o/p will still be in debt. If it is rented out for a few years and then sold when house prices have increased then the o/p may walk away without any debt.

    But it had equity until very recently. Also OP has stated on other threads that the mortgage is a remortgage to cover loans, credit cards, secured loans etc in addition to arrears making it higher.

    Surely this is looked at or are you saying that the govt disregard all these things?
    Tomorrow is the most important thing in life
  • bloolagoon wrote: »
    But it had equity until very recently. Also OP has stated on other threads that the mortgage is a remortgage to cover loans, credit cards, secured loans etc in addition to arrears making it higher.

    Surely this is looked at or are you saying that the govt disregard all these things?

    One would assume the re-mortgage was at a time when the o/p had income to enable a re-mortgage and before they claimed benefits.
    These are my own views and you should seek advice from your local Benefits Department or CAB.
  • bloolagoon
    bloolagoon Posts: 7,973 Forumite
    One would assume the re-mortgage was at a time when the o/p had income to enable a re-mortgage and before they claimed benefits.

    I will reword so it's not about OP.

    Are you saying that if an original mortgage is £50,000 but someone borrows £100,000 from equity to fund holidays, cars etc the govt would treat the mortgage as £100,000?
    Tomorrow is the most important thing in life
  • NYM
    NYM Posts: 4,066 Forumite
    Tenth Anniversary 1,000 Posts Photogenic Combo Breaker
    I'm very confused here. My question is (btw.not specifically related to the OP'er, but may have some relevance)


    How is it determined that a property is in negative equity ?
    EA valuation/Mortgage Provider/Customer declaration ?
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