Housing benefit/owning house jointly

lynseydee

I separated from my husband and moved out last year due to personal circumstances. I have found a house to rent and live in with my son but as my ex has left me to pay the credit card debts (joint debts but cards in my name) it means I don't have enough money to pay both and everyday expenses. I would like to apply for housing benefit to help with the rent but not sure as I still jointly own our house (but don't contribute to mortgage) whether I would be eligible. My ex is refusing to sell the house until custody of our son is sorted. I feel if I don't sort this out soon I'm not going to be able to afford to live here.

Can anyone offer any advice with regards to housing benefit?

marliepanda

I am not 100% but I believe unless the house is up for sale (which you claim it is not) then you will struggle to be awarded HB.

Rent is a necessary expense. Credit card payments are not. Your rent simply has to come first.

I am assuming the personal circumstances explain why you, and not your ex, moved out of the home. Is there no reason you cannot move back and have him move out? What is your income currently, as that will also impact any eligibility for HB, if they disregard the house, as clearly you must have some income to service the credit card debts?

pmlindyloo

I should apply for housing benefit. On the form it asks whether you have an interest in another property. Then you will get a form something like this:

https://www.canterbury.gov.uk/media/519412/LA1.pdf

This ask about whether the property is subject to divorce proceedings and also why you aren't living in it.

Although I cannot find anything in the legislation to suggest that this 'asset' would be disregarded in your particular situation - (perhaps I missed it) the form suggests it will be.

As already said the credit cards are non priority debts and if you are having difficulty paying for them you need to contact a free debt advice service (pop over to the Debtfree wannabe forum ) for some support.

Basically you need to improve your income (is your ex paying child support for example? Can you increase your hrs?) and/or reduce your expenditure. If after addressing these issues there is still a problem then there are various options for dealing with your debts.

HappyMJ

lynseydee wrote: »

I separated from my husband and moved out last year due to personal circumstances. I have found a house to rent and live in with my son but as my ex has left me to pay the credit card debts (joint debts but cards in my name) it means I don't have enough money to pay both and everyday expenses. I would like to apply for housing benefit to help with the rent but not sure as I still jointly own our house (but don't contribute to mortgage) whether I would be eligible. My ex is refusing to sell the house until custody of our son is sorted. I feel if I don't sort this out soon I'm not going to be able to afford to live here.

Can anyone offer any advice with regards to housing benefit?

What is your share of the house worth?

The value is calculated by taking the market value (average of a couple estate agents opinions will be fine and you can ignore the highest ones until you get an estate agent saying it's worth little...remember to present the house in a terrible way to get a low valuation and point out every single fault you can think of) then deduct 10% from that figure which should be enough to cover fees and allow you to take a slightly lower offer for a quick sale then deduct the outstanding mortgage including any early repayment penalty due then as you own it jointly the remainder would be split equally between you.

If that figure then ends up less than £16,000 then you qualify for housing benefit despite owning a share in a property.

i.e let's say it's worth £200,000 but in it's current state the estate agents say it's worth £190,000. Deduct 10% taking that to £171,000 then deduct the 80% mortgage (£160,000) you have which brings the amount you would achieve from a sale down to £11,000......then split that between you and it's only £5,500 which means you get full housing benefit.

lynseydee

marliepanda wrote: »

I am not 100% but I believe unless the house is up for sale (which you claim it is not) then you will struggle to be awarded HB.

Rent is a necessary expense. Credit card payments are not. Your rent simply has to come first.

I am assuming the personal circumstances explain why you, and not your ex, moved out of the home. Is there no reason you cannot move back and have him move out? What is your income currently, as that will also impact any eligibility for HB, if they disregard the house, as clearly you must have some income to service the credit card debts?

pmlindyloo wrote: »

I should apply for housing benefit. On the form it asks whether you have an interest in another property. Then you will get a form something like this:

https://www.canterbury.gov.uk/media/519412/LA1.pdf

This ask about whether the property is subject to divorce proceedings and also why you aren't living in it.

Although I cannot find anything in the legislation to suggest that this 'asset' would be disregarded in your particular situation - (perhaps I missed it) the form suggests it will be.

As already said the credit cards are non priority debts and if you are having difficulty paying for them you need to contact a free debt advice service (pop over to the Debtfree wannabe forum ) for some support.

Basically you need to improve your income (is your ex paying child support for example? Can you increase your hrs?) and/or reduce your expenditure. If after addressing these issues there is still a problem then there are various options for dealing with your debts.

HappyMJ wrote: »

What is your share of the house worth?

The value is calculated by taking the market value (average of a couple estate agents opinions will be fine and you can ignore the highest ones until you get an estate agent saying it's worth little...remember to present the house in a terrible way to get a low valuation and point out every single fault you can think of) then deduct 10% from that figure which should be enough to cover fees and allow you to take a slightly lower offer for a quick sale then deduct the outstanding mortgage including any early repayment penalty due then as you own it jointly the remainder would be split equally between you.

If that figure then ends up less than £16,000 then you qualify for housing benefit despite owning a share in a property.

i.e let's say it's worth £200,000 but in it's current state the estate agents say it's worth £190,000. Deduct 10% taking that to £171,000 then deduct the 80% mortgage (£160,000) you have which brings the amount you would achieve from a sale down to £11,000......then split that between you and it's only £5,500 which means you get full housing benefit.

Marleypanda, unfortunately there is no chance of me moving back to the propriety. For one I've moved back closer to my family and about to start a new job, it is currently part time but there is an opportunity for it to become full time eventually.

Pmlindyloo, thanks for providing that information. I am looking at ways of increasing my income, unfortunately no way of reducing my expenditure as most of what I pay out is for essentials. I did think about speaking with the credit cards and see if they would reduce the interest rates, which although wouldn't solve the situation would reduce the payments. My ex doesn't pay any maintenance although through his solicitor has told me how much he legally has to pay me!!

HappyMJ unfortunately my share of the house proceeds would be more than £16000 but until he agrees to sell the house I'm not going to see a penny of it.

HappyMJ

lynseydee wrote: »

HappyMJ unfortunately my share of the house proceeds would be more than £16000 but until he agrees to sell the house I'm not going to see a penny of it.

Move back in then.

You legally own the house and he has no right to exclude you from the house.

elmer

Before moving, I would apply for Housing Benefit (and also speak tho the current equivalent of the CSA for maintenance). If HB says no they won't disregard your marital home, then you can consider other options. If they are happy to for a period of time then you know how long you have to get things sorted.

In my area we now have an online application form on the councils website, so you can do it straight away

good luck

elmer

NYM

I'm just curious, would he have to pay Child Maintenance if the child is still living in the same property?

lynseydee

HappyMJ wrote: »

Move back in then.

You legally own the house and he has no right to exclude you from the house.

elmer wrote: »

Before moving, I would apply for Housing Benefit (and also speak tho the current equivalent of the CSA for maintenance). If HB says no they won't disregard your marital home, then you can consider other options. If they are happy to for a period of time then you know how long you have to get things sorted.

In my area we now have an online application form on the councils website, so you can do it straight away

good luck

elmer

NYM wrote: »

I'm just curious, would he have to pay Child Maintenance if the child is still living in the same property?

HappyMJ, moving back in is not an option, there was a reason I moved out in the first place.

Elmer, unfortunately I've already moved. I will speak to whoever I need to about maintenance though so thank you.

NYM, our son is living with me not him.

NYM

I meant only if you moved back in

pmlindyloo

Just a heads up.

Since you are joint owners of the property you do have the right to live there and the council may use this as a reason to deny HB in the first instance.

I understand that you have your reasons for leaving the property but it may be worthwhile getting together some evidence to show that there is a dispute about the property. For instance, have you seen a solicitor about getting a divorce or do you have any paperwork from your husband's solicitor saying that he is contesting custody of your son (and thereby, presumably, getting rights to live in the matrimonial home with your son)?

Sorry, to bring this all up but I suspect that the council will need some proof of what is happening about your'share' of the jointly owned property.

I suggest you make an application for housing benefit declaring your interest in the matrimonial home and then go from there. The council should tell you if they require evidence and what kind they need.

If your application for HB becomes complicated then you could visit CAB to ask for some help/support.

And another heads up!

Have you checked that you would be eligible for HB by using a benefits calculator? Presumably you are claiming tax credits and these plus your earnings may stop you being eligible for HB. Worth doing before you go through what may turn out to be a complicated claim.

And yes, get that child support sorted asap and get some legal advice if you haven't already done so.