Selling House then Renting (claiming housing benefit)

carley106 · 30 August 2015 at 6:08PM

Can I have some advice please.

I am currently in receipt of ESA and help with my mortgage interest. I am unwell.

I have found someone to rent because I can't cope with the up keep on my house.

I will move into the rented place and then sell the house.

I will need a quick sale.

I have two choices to put the property on the market for a realistic quick sale amount or sell through a company that deals with quick sales.

I intend to claim housing benefit on the new flat and stay on ESA.

I am worried that ESA or Housing Benefit will value my home at more than I put it on the market for or the amount a quick sale company would give me for me.

I am worried if there is a difference they may say its a deprivation of capital if I let the property go for less than there valuation.

Can anyone help as to whether they would do that or will they accept the quick sale value price ?

I can't put myself in the situation of having notional capital and not entitled to help.

Rambosmum · 30 August 2015 at 7:07PM

Don't use a quick sale company. Put it on the market for market value, maybe 5k under - the market is pretty good right now and it means you can take the first offer provided.

Housing benefit goes off you savings and income I believe, so if you have any equity in your house that may affect how much you get.

elmer · 30 August 2015 at 7:24PM

If your house is worth more than 16, 000 you won't be able to claim HB once you've received the sale proceeds as the capital limit for HB is £16,000.

And if your ESa is income based that will stop as well and you will be expected to live off the capital until it reaches below £16,000.

Are you sure you want to sell?

carley106 · 30 August 2015 at 7:29PM

I'm sick of owning it to be honest. I can't cope with the upkeep and I can't make repayments to the capital borrowed.

I should walk away with less than 16k.