Housing Benefit and Equity in a property

Jem111

Hi I'm hoping I can get a bit of advice. I own a property which is worth about £60,000. This is made up of a £32k mortgage and I also have a written agreement with my father that when the property sells he takes 10k. This was made up of missed mortgages payments and fees as the property's mortgage is with pre litigation. I nearly lost the property due to none payment of the mortgage. We tried to sell the property but as the area isn't the best we had no joy. My father then spent a further 5k on making the property rentable.
I have recently had a baby and am a single parent with no support from the father and housing benefit have asked for further information. I am providing all the above information. The property is also rented for £400 per month with the tenancy ending in may 2017. However I will probably have to renew as the likelihood of it selling is very slim and if I miss any payments the property will be taken immediately. The mortgage is £368 per month and a £50 arrears payment.
My father now pays this and he takes the rent from the tenant.
I do not benefit from the property in any way. If it was too be sold I would probably benefit from about 8k that's if it sells.
I'm now worrying in case my housing benefit stops and leaves me and my son being unable to afford anywhere to live. Im unsure on how housing benefit works with a second property that's rented. All I can say is I'm extremely worried and had initially thought this wouldn't of been a problem as I do not benefit from the rent. Can anyone advise ?

pinkshoes

Jem111 wrote: »

Hi I'm hoping I can get a bit of advice. I own a property which is worth about £60,000. This is made up of a £32k mortgage and I also have a written agreement with my father that when the property sells he takes 10k. This was made up of missed mortgages payments and fees as the property's mortgage is with pre litigation. I nearly lost the property due to none payment of the mortgage. We tried to sell the property but as the area isn't the best we had no joy. My father then spent a further 5k on making the property rentable.
I have recently had a baby and am a single parent with no support from the father and housing benefit have asked for further information. I am providing all the above information. The property is also rented for £400 per month with the tenancy ending in may 2017. However I will probably have to renew as the likelihood of it selling is very slim and if I miss any payments the property will be taken immediately. The mortgage is £368 per month and a £50 arrears payment.
My father now pays this and he takes the rent from the tenant.
I do not benefit from the property in any way. If it was too be sold I would probably benefit from about 8k that's if it sells.
I'm now worrying in case my housing benefit stops and leaves me and my son being unable to afford anywhere to live. Im unsure on how housing benefit works with a second property that's rented. All I can say is I'm extremely worried and had initially thought this wouldn't of been a problem as I do not benefit from the rent. Can anyone advise ?

I assume you notified the housing benefit people that you own a property with equity?

I think there is often a short overlap for those who have had to move and reponsible for two homes where you can claim housing benefit, but I'm quite sure that this is only in certain circumstances.

You need to speak to the housing benefit people.

If it is worth £60k with a £32k mortgage and £10k to your dad, then even after selling fees you would still have around £15k, so probably not entitled to housing benefit.

Why not either move back in, or just sell again and drop the price. By renting it you have now limited your market though...

bertiewhite

Why have you posted about the same subject in 2 different places?

https://forums.moneysavingexpert.com/discussion/5603688

Jem111

I do need to look at a lower amount I believe I can walk away once £48 is received. I'm going to have to speak to housing as I'm concerned about the next 6/12 month before I can get a buyer. In the meantime I'm really worried as what will happen as I need to be able to afford rent. I can only really manage for another month :(

Mojisola

Jem111 wrote: »

The property is also rented for £400 per month with the tenancy ending in may 2017.

Start marketing it now at a very reasonable price and it could be sold by May.

paddedjohn

Is the written agreement with your father a proper arrangement or just something you both agreed to?

agrinnall

Mojisola wrote: »

Start marketing it now at a very reasonable price and it could be sold by May.

It would have to be a very reasonable price indeed as it'll probably only be sold to another LL.