renting house while on tax credits?

scousedave

Hello I writing this on behalf of a friend of mine.
She is a single mother whose husband recently passed away and is struggling to pay her mortgage but she has the possibility to live in a static caravan rent free while the owners overseas.
She has 600 equity in her house.....would the wtc and child tax credits cease if she were to do this as she would be over the 16k limit of savings and equity.
Thank you...pls go easy on her

bloolagoon

scousedave wrote: »

Hello I writing this on behalf of a friend of mine.
She is a single mother whose husband recently passed away and is struggling to pay her mortgage but she has the possibility to live in a static caravan rent free while the owners overseas.
She has 600 equity in her house.....would the wtc and child tax credits cease if she were to do this as she would be over the 16k limit of savings and equity.
Thank you...pls go easy on her

Why would anyone with savings be unable to pay a mortgage and live in a caravan in winter time?

merlin68

Shes safe till universal credit comes in, where your not allowed to have savings.
Tax credits, doesn't matter. shes still got to pay mortgage and council tax even if shes living in the caravan.
Can she not sell up and rent?

pmlindyloo

Can you please clarify?

Does she have 600 (thousand?) in equity? Or over £16000 in savings?

scousedave

pmlindyloo wrote: »

Can you please clarify?

Does she have 600 (thousand?) in equity? Or over £16000 in savings?

£60,000 in equity.

scousedave

Let me pls clarify the only savings she has is equity in her house.

NYM

What do her children think about living in a caravan during the winter months ?
Your friend will still have mortgage payments to make until her property is sold so there is no real advantage to moving.

pmlindyloo

Thank you.

I can see that living rent free seems attractive to her but she would still be liable for the mortgage on her property.

There is really no need for her to move out of her home.

First she needs to check that she is receiving the benefits that she is entitled to.

She can put her details into the calculator on https://www.entitledto.co.uk to check.

Has she been receiving any bereavement benefits/payment?

Next she needs to inform her mortgage lender what is happening. They may be happy to give her a mortgage payment 'holiday' whilst she is deciding what to do.

Can she increase her salary?

If she has equity then she may want to sell the property and rent.

Lots of different scenarios possible so she shouldn't make any rash decisions.

teddysmum

Some static caravans are quite chilly in winter and if the one offered is on a holiday home, there will probably be a restriction on the number of months per year allowed for occupancy (as opposed to access).


I knew someone, who sold her home to live in her holiday let and regretted it for these two reasons. She had to rent a flat for two winter months.

[Deleted User]

if the caravan is usually used as a holiday home the owner will not legally be allowed to let someone "live"in it,such a person would have to also have a permanent address,its all to do with the 1983(amended 2013)park home acts,which are complicated,they offer great protection to residential park home owners but non to those living in caravans used legally for holidays,and she would risk eviction by the councils licensing dept

RAS

Most static caravan sites close for two months over the winter as a condition of their licence.

Your friend needs to get a full benefit check but start with https://www.turn2us.org.uk.

She needs to contact her mortgage provider urgently to advise them and to ask for a payment holiday. She may well be able to claim Mortgage Interest Allowance (at present).

Was there no life insurance? No pension arrangement?