What do I do about my house?

alihud

Ok here is my situation.
I have my own house with mortgage. I am long term unwell with a life long illness. I have a 17 year old son due to leave school in June.
I am living on my parents inheritance which should last about another year. I am also on DLA just transferring over to pip.
I do not know what to do for the best. Do I sell my house this year and move into a smaller one bed place rented and live on the equity for a few more years then I would need to claim esa. I can't see any other way of doing this. My son is planning to go and live with his dad as he lives in an area that will give him a better chance of finding work or his other plan is to get an apprenticeship with the navy.
If I stay in the house and my money runs out then won't I have to sell it anyway as the government would make me move to a one bedroom place anyway if I were to claim benefits. Seems as though I will have no choice but to sell it.

tacpot12

It may help others to advise you if you can say how much the outstanding mortgage is, how many years until it is cleared, and whether it is a repayment or interest-only mortgage.

Sorry, but I can't offer any advice myself.

AnotherJoe

Try citizens advice , you need more one to one help than you will be able to get from a forum. There may well be benefits available to pay your housing costs you arent aware of thats its best to know about before you take any major actions

Bossypants

I agree with AnotherJoe, Citizen's Advice would be a good place to start.

I would also consider whether there is enough equity in your house for you to sell and buy a smaller property outright, one which is suitable for your needs in the long term. Last time I checked the government won't force you to sell the home you own if you claim benefits, especially disability (though they won't help with capital mortgage repayments), partly because it's cheaper/easier for them if they don't have to deal with your housing.

Definitely call CA though, this is not a decision you want to make rashly.

Upsidedown_Bear

alihud wrote: »

Ok here is my situation.
I have my own house with mortgage. I am long term unwell with a life long illness. I have a 17 year old son due to leave school in June.
I am living on my parents inheritance which should last about another year. I am also on DLA just transferring over to pip.
I do not know what to do for the best. Do I sell my house this year and move into a smaller one bed place rented and live on the equity for a few more years then I would need to claim esa. I can't see any other way of doing this. My son is planning to go and live with his dad as he lives in an area that will give him a better chance of finding work or his other plan is to get an apprenticeship with the navy.
If I stay in the house and my money runs out then won't I have to sell it anyway as the government would make me move to a one bedroom place anyway if I were to claim benefits. Seems as though I will have no choice but to sell it.

If you are meaning the so-called "Bedroom Tax" this only applies to properties that are rented from the council or a housing association.
It does not apply if you own your own home - mortgaged or outright.

Spare bedrooms.
Your Housing Benefit could be reduced if you live in council or social housing and have a spare bedroom. The reduction is:

• 14% of the ‘eligible rent’ for 1 spare bedroom
• 25% of the ‘eligible rent’ for 2 or more spare bedrooms

Info from here:
https://www.gov.uk/housing-benefit/what-youll-get

alihud

I have tried cab before and they were absoloutely useless. That's why I am trying here.
I have a mortgage of 165,000 and estate agent has valued it at 210,000 so won't be able to buy another house. It is an interest only mortgage would the government pay the mortgage if it's a three bed house and just me living here.wouldnt the bedroom tax affect me?

Bossypants

alihud wrote: »

I have tried cab before and they were absoloutely useless. That's why I am trying here.
I have a mortgage of 165,000 and estate agent has valued it at 210,000 so won't be able to buy another house. It is an interest only mortgage would the government pay the mortgage if it's a three bed house and just me living here.wouldnt the bedroom tax affect me?

I'm sorry to hear that CA weren't helpful to you.

I believe the government would still provided assistance with interest, but it might still be wonder considering downsizing. I don't know where you are, but in most places a one or two bedroom flat is significantly less than a three bedroom house, plus it's easier to maintain and better for mobility (if that's likely to be a concern in the long run).

Alternatively, would you consider taking a lodger or two? Depending on where you are, they can bring in significantly more than is offset in your benefits, so might be worth looking into.

jayII

As stated above, bedroom tax only applies to people renting council or housing association properties. It does not apply to people in their own homes, regardless if you have a mortgage or not.

Try putting yours and your son's details into entitledto or a similar site. Put the details in two times, first with, then without, your remaining inheritance. You might be entitled to some help with the interest payments on your mortgage, once your inheritance/savings drop below £16,000. This varies a lot though, depending on circumstances and the area you live in, so something like entitledto is the best place to work out what help you might get.

martindow

alihud wrote: »

I have a mortgage of 165,000 and estate agent has valued it at 210,000 so won't be able to buy another house. It is an interest only mortgage would the government pay the mortgage if it's a three bed house and just me living here.wouldnt the bedroom tax affect me?

How long has the mortgage got to run? At the end of its term it will need to be repaid which would presumably force a sale. Apart from anything else you will need to plan for this.

Mardle

Would you consider relocating to an area where you could afford to buy a ground floor flat with the equity from the sale of your house?

alihud

£35,000 wouldn't get me a flat would it? Also if I had to start claiming esa once my inheritance had gone wouldn't they make a fuss about me using the money from the house to buy somewhere instead of living on it. Also if I stayed in the house and my son started an apprenticeship surely they would take his earnings into account wouldn't he have to pay the mortgage? Oh this all feels so complicated.
Also yes the house would have to be paid for at some point I'm not sure how long I have left on the mortgage,I'm thinking it's about 17 years to go. I have no funds left to pay for it as my parents inheritance was meant to pay for it but because I became unwell I have had to live on it instead.