Housing benefit and a second property. please help?

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 ?

Bogalot

The rent is yours, the fact that you choose to give it away is not relevant.

Why do you not live there?

marliepanda

Why can't you live in the property?

It's unlikely to get HB whilst renting out another property.

You do benefit from the rent. It's paying your mortgage.

Mojisola

Jem111 wrote: »

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.

We tried to sell the property but as the area isn't the best we had no joy.

What price did you ask for the house? If you put it on the market for £50k, would it then sell? You could repay the mortgage, your Dad and cover the costs of selling and be free of a millstone.

How did you get HB in the first place when you are a property owner?

Are you declaring the income from the rent?

FBaby

If it's good enough for a tenant, it will be good enough for a buyer, so you're argument that the property can't sell won't be acceptable.

It might be that you are entitled to HB whilst the property is up for sale up to a certain time, so it will be up to you to manage at which point you reduce the price if it doesn't sell.

Jem111

I have a young baby and it's out of the way and isn't a safe place to live because of the father. We had to move

Jem111

Thanks for the response I had it on for 55OIRO I had no joy however once the tenancy is up again I will put it on lower. I can walk away with 48k. I'm just worried what I'm going to do in the interim as it could take up to 12 months. I have provided housing all this information.

Jem111

I've had it on for sale previously but I had no joy. Soon as I can I will re market it and take less. I'm just worried in the meantime. I really didn't want to move again and I'm worried I'll be able to afford to pay any rent

Jem111

I see what your saying but the rent just covers the mortgage there isn't anything left over. So I'm trying to look at a temporary solution as I can't sell for 6 months and we need a roof over our heads

heartbreak_star

Move back in and get a restraining order on the father? Don't let him chase you out of your home!

Unfortunately "it's not a very nice area" probably isn't going to cut any mustard with HB...

HBS x

Jem111

I really wish I was strong enough to do that but I wouldn't be able to sleep ever.

I really need to sell it that's what has become apparent from the threads. I have less that 10k equity. I'm just hoping I can survive until I have gotten rid of it

Thankyou for your response x