homeowner moving into girlfriends council house

frisky_biscuit

Hello. I really need some help. I've tried doing a benefits search on turn2us but it doesn't seem to have the right questions for my problem....

Girlfriend: she's 29, has 2 kids age 4 and 5, the eldest has autism. She lives in a council house. She currently gets
Income support
Housing benefit
Council tax support
Higher rate dla care component
Lower rate mobility component
Child benefit
Child tax credits with severe disability premium
She does not work as she is full time carer to her son.


Me; I work and earn around £17k a year. I have a mortgage on my 1 bed flat. Flat is worth £105000 and I owe approx 67000 left on the mortgage.

The plan is to rent out my flat after a trial period of living together. Market rate is approx £600 a month but this would be subject to fees of a managed lettings agent as I really don't want to deal with the grief as the flat is in an old building. My mortgage is around £300 a month.

How will my flat affect the tax credits situation? Do I need to declare this or is this not relent. I want to make sure that everything is above board and legal. Any help greatly appreciated x

Darksparkle

You'll need to declare your taxable profits on your rental income.

pmlindyloo

frisky_biscuit wrote: »

Hello. I really need some help. I've tried doing a benefits search on turn2us but it doesn't seem to have the right questions for my problem....

Girlfriend: she's 29, has 2 kids age 4 and 5, the eldest has autism. She lives in a council house. She currently gets
Income support
Housing benefit
Council tax support
Higher rate dla care component
Lower rate mobility component
Child benefit
Child tax credits with severe disability premium
She does not work as she is full time carer to her son.


Me; I work and earn around £17k a year. I have a mortgage on my 1 bed flat. Flat is worth £105000 and I owe approx 67000 left on the mortgage.

The plan is to rent out my flat after a trial period of living together. Market rate is approx £600 a month but this would be subject to fees of a managed lettings agent as I really don't want to deal with the grief as the flat is in an old building. My mortgage is around £300 a month.

How will my flat affect the tax credits situation? Do I need to declare this or is this not relent. I want to make sure that everything is above board and legal. Any help greatly appreciated x

As regards other benefits then as soon as you move in all benefit claims will be counted as joint claims.

Your partner will lose her Income Support and you will have to be assessed on your joint income and capital as regards HB and CT support.

I will let someone with more knowledge explain how HB and CT support will be affected by your rental income and capital.

Is the DLA for the child? If it is then.....

Does your partner claim Carer's Allowance? If she does then this will continue as long as she meets the eligibility requirements but may be counted as income for some means tested benefits.

The DLA will be not be affected by your moving in.

The best way forward is to notify all benefit departments, so the council for HB and CT support, the DWP for Income support and tax credits to close her single claim and change to a joint claim.

Guest101

frisky_biscuit wrote: »

Hello. I really need some help. I've tried doing a benefits search on turn2us but it doesn't seem to have the right questions for my problem....

Girlfriend: she's 29, has 2 kids age 4 and 5, the eldest has autism. She lives in a council house. She currently gets
Income support
Housing benefit
Council tax support
Higher rate dla care component
Lower rate mobility component
Child benefit
Child tax credits with severe disability premium
She does not work as she is full time carer to her son.


Me; I work and earn around £17k a year. I have a mortgage on my 1 bed flat. Flat is worth £105000 and I owe approx 67000 left on the mortgage.

The plan is to rent out my flat after a trial period of living together. Market rate is approx £600 a month but this would be subject to fees of a managed lettings agent as I really don't want to deal with the grief as the flat is in an old building. My mortgage is around £300 a month.

How will my flat affect the tax credits situation? Do I need to declare this or is this not relent. I want to make sure that everything is above board and legal. Any help greatly appreciated x

Market rate is approx £600 a month but this would be subject to fees of a managed lettings agent as I really don't want to deal with the grief as the flat is in an old building.


- you do realise that the contract is between you and the tenant. YOU are always liable, not your agent.
- it's declarable like any other income

DUTR

Guest101 wrote: »

Market rate is approx £600 a month but this would be subject to fees of a managed lettings agent as I really don't want to deal with the grief as the flat is in an old building.


- you do realise that the contract is between you and the tenant. YOU are always liable, not your agent.
- it's declarable like any other income

Additionally, the T&Cs of the mortgage may not allow for the OP to rent the flat out.

Diary

This may be irrelevant but you must ensure your girlfriend informs DWP on the day you move in that you are there and it's now a joint claim. Follow the phone call up in writing by recorded delivery keeping a copy. I say claim even though income support will stop.

If you don't it WILL come back to haunt you or her or both of you. Even if it's a 'trial' of living together.

Housing_Benefit_Officer

Your flat will be treated as capital - market value minus mortgage minus 10%. Rental income minus mortgage and expenses will be treated as income.

Darksparkle

Housing_Benefit_Officer wrote: »

Your flat will be treated as capital - market value minus mortgage minus 10%. Rental income minus mortgage and expenses will be treated as income.

To add to this, capital doesn't apply to tax credits, only the income.

It is also not the full mortgage that can be deducted to establish the taxable profit, it's only the interest.

tea-bag

frisky_biscuit wrote: »

Hello. I really need some help. I've tried doing a benefits search on turn2us but it doesn't seem to have the right questions for my problem....

Girlfriend: she's 29, has 2 kids age 4 and 5, the eldest has autism. She lives in a council house. She currently gets
Income support
Housing benefit
Council tax support
Higher rate dla care component
Lower rate mobility component
Child benefit
Child tax credits with severe disability premium
She does not work as she is full time carer to her son.


Me; I work and earn around £17k a year. I have a mortgage on my 1 bed flat. Flat is worth £105000 and I owe approx 67000 left on the mortgage.

The plan is to rent out my flat after a trial period of living together. Market rate is approx £600 a month but this would be subject to fees of a managed lettings agent as I really don't want to deal with the grief as the flat is in an old building. My mortgage is around £300 a month.

How will my flat affect the tax credits situation? Do I need to declare this or is this not relent. I want to make sure that everything is above board and legal. Any help greatly appreciated x

WOW Full house! As others have said your £17k is nothing compared to what she is getting now.

She will be getting almost £18k in cash per year already and rent and council tax paid on top of that about say £24k (that is just worked out at £100pw rent!)

If she was working she would need a salary of £31k

Housing_Benefit_Officer

Darksparkle wrote: »

To add to this, capital doesn't apply to tax credits, only the income.

It is also not the full mortgage that can be deducted to establish the taxable profit, it's only the interest.

For Housing Benefit purposes it is the full mortgage. For income Tax purposes its the interest. Different rules.

TELLIT01

Your earnings will stop your partners entitlement to Income Support even if she has a condition of entitlement due to claiming Carer's Allowance. I don't know if that will also impact on CT & HB claims.