single mum unemployed and owning a house

Agis

To answer to your questions:

I still think that the house I own is a good investment for our future and it has features difficult to find and for those reasons I would prefer not to sell it. It is my first house also - so there is an emotional factor too. Also before I have a job and confirmed location I am far away from selling the house and buying a new one... It is like a circle...

I really hope that I will find a job within 2-3 months. Might be not here though as It is a difficult area. My plan is to look for a job locally but my eyes are wide open and I am still arranging interviews outside my preferred location. The pain is I would need to change children's school again and I would prefer not to do it before summer holiday.

Currently I have the contract for my current location house till mid August. Same for my capital house I am renting out. Basicly both contracts are 1 year contracts. I might be able to discuss this topic of moving out earlier with my landlord to see what he says...

The capital is around 100k. The income from rent is £250.

Just wondering if I could benefit in anyway if I put the house for sale? Anyone could answer that question?

The tenants would get 2 months notice and the whole selling process takes at least 3 months. The risk/chance is I might have already a new job by then and not need that... hahaha

What I need is some financial support right now without the need of going through so costly experience of selling the house...

pmlindyloo

Agis wrote: »

To answer to your questions:

I still think that the house I own is a good investment for our future and it has features difficult to find and for those reasons I would prefer not to sell it. It is my first house also - so there is an emotional factor too. Also before I have a job and confirmed location I am far away from selling the house and buying a new one... It is like a circle...

I really hope that I will find a job within 2-3 months. Might be not here though as It is a difficult area. My plan is to look for a job locally but my eyes are wide open and I am still arranging interviews outside my preferred location. The pain is I would need to change children's school again and I would prefer not to do it before summer holiday.

Currently I have the contract for my current location house till mid August. Same for my capital house I am renting out. Basicly both contracts are 1 year contracts. I might be able to discuss this topic of moving out earlier with my landlord to see what he says...

The capital is around 100k. The income from rent is £250.

Just wondering if I could benefit in anyway if I put the house for sale? Anyone could answer that question?

The tenants would get 2 months notice and the whole selling process takes at least 3 months. The risk/chance is I might have already a new job by then and not need that... hahaha

What I need is some financial support right now without the need of going through so costly experience of selling the house...

You can claim contribution based JSA (if you have been paying class 1 NI contributions during the last two tax years). This is not means tested so the house you own will make no difference.

Having given us the figures you will not be able to claim any other benefits because of the house you own.

Your options are:

1. Find another job.
2. Manage on the income from your rented house, your child tax credits, your CB, your child maintenance and financial help from family/friends until you get another job.
3. Sell your house. If you take 'all reasonable steps' to sell the property then the capital will be disregarded for 26 weeks (or longer if necessary)

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/365782/hbgm-bw1-assessment-of-capital.pdf

You would have to show that you have given your tenants notice for possession and put the house up for sale.
4. If you do number 3 then you can claim HB and CT reduction on your current rented property but I believe the rental income would be taken into account.

marliepanda

pmlindyloo wrote: »

1. Find another job.
2. Manage on the income from your rented house, your child tax credits, your CB, your child maintenance and financial help from family/friends until you get another job.
3. Sell your house. If you take 'all reasonable steps' to sell the property then the capital will be disregarded for 26 weeks (or longer if necessary)

This.

Benefits are not there to 'financially support' you because you don't want to sell your house.

You are in a much more fortunate position than many people who don't qualify for benefits as well.

WYSPECIAL

If you sell the house though will you be able to buy another one whilst out of work?

If not you will still be sitting on £100k of capital just it will be more liquid.

Agis

I know my situation is not as bad as the one of other people. However I have contributed to society by paying taxes for nearly 10 years and once my family and myself are in need I can barely get money to cover half of my rent. Is that fair?
It is all too much complicated. I think more people should be aware of the consequences of having our own houses and as a precaution taking an insurance. However again I am wondering how many of those will be actually paid...
Thank you pmlindyloo for your points - they are very relevant. :T

paddedjohn

Agis wrote: »

I know my situation is not as bad as the one of other people. However I have contributed to society by paying taxes for nearly 10 years and once my family and myself are in need I can barely get money to cover half of my rent. Is that fair?
It is all too much complicated. I think more people should be aware of the consequences of having our own houses and as a precaution taking an insurance. However again I am wondering how many of those will be actually paid...
Thank you pmlindyloo for your points - they are very relevant. :T

When you pay your taxes you aren't paying into a rainy day fund, you are lucky to be getting half your rent paid since you have capital worth £100k

FBaby

I do feel for you Agis. You've acted in a way people are told to do. You looked for work out of your area and was prepared to move for that job, including moving your kids to a new school.

You are now being very unlucky that you've lost your job through no fault of yours. All you need is a bit of help for a short period of time to help you get back on your feet, but you can't get it, whilst some people will get their mortgage interest paid for many years.

Unfortunately, as you've said, people like you can't rely on the system they pay towards to and have to rely on insurance that they need to pay yet extra into.

If I were you, I'd put the house on the market. With tenants in situ, it will draw much less interest and even if there is, you can stall the process for quite a few months. Then focus like mad on getting any FT job you can get asap. When you have done so, remove the house from sale. When you get a new job, prioritise saving two months worth of salary as emergency fund. Good luck.

NYM

FBaby wrote: »

.....

If I were you, I'd put the house on the market. With tenants in situ, it will draw much less interest and even if there is, you can stall the process for quite a few months. Then focus like mad on getting any FT job you can get asap. When you have done so, remove the house from sale. When you get a new job, prioritise saving two months worth of salary as emergency fund. Good luck.

Come on now...who are you? Why have you hacked FBaby's account? :rotfl:

FBaby would never suggest cheating the system!

FBaby

NYM wrote: »

Come on now...who are you? Why have you hacked FBaby's account? :rotfl:

FBaby would never suggest cheating the system!

haha, OMG, I've been here to long, it's rubbing on me

Seriously though, who knows, OP might get a really good offer for her house and be re-employed soon again, by which time, she might decide she might as well buy a property locally anyway.

Kayalana99

Can you re-mortagage to release some capital or get a short term loan to cover you whilst you find another job?

The goverment supports people who are actually in need, having 100k whether tied up in a house or not, does not put you in this boat and paying taxes doesn't mean you deserve a hand out - taxes are still paying for your kids education, healthcare...etc etc so it's not like you don't get anything back.

I can understand not wanting to sell, but then you can either release equity if you literally have no savings, sell, or get a financial loan to help you through this period of unemployment.