Benefit for landlord who is renting other city

Housing_Benefit_Officer

teddysmum wrote: »

Is this the whole mortgage payment, as opposed to just the interest as used for tax calculations ?

Yes the whole mortgage payment.

FBaby

We could say yes. Doesn't matter is someone owns another property or multiple properties.

Isn't this another huge loop hole then? So anyone owning a property, who find themselves unemployed and not able to pay their mortgage would be better off moving out, letting their house and then going to rent elsewhere and claim HB whilst the rent pays their mortgage? Indefinitely?

Guest101

Housing_Benefit_Officer wrote: »

Cost of selling the asset, estate agent fees, solicitor fees etc....

Has been 10% for nearly 30 years.

Well conveyancing can be as little as £600, but let's say £1,000 and estate agents fees are typically either fixed or upto 2.5%, usually less. That's 3.5%, where's the other 6.5%?

Guest101

Housing_Benefit_Officer wrote: »

Yes the whole mortgage payment.

Why? That's literally an income.

Housing_Benefit_Officer

FBaby wrote: »

Isn't this another huge loop hole then? So anyone owning a property, who find themselves unemployed and not able to pay their mortgage would be better off moving out, letting their house and then going to rent elsewhere and claim HB whilst the rent pays their mortgage? Indefinitely?

It would depend if the property had any capital value. Properties increase and decrease in value. So someone might be entitled to benefit as their property has little or no capital value but the housing market means the capital value increases so they then get disqualified from HB as capital goes above £16k. House prices increased by 7.6% in 2016.

Housing_Benefit_Officer

Guest101 wrote: »

Well conveyancing can be as little as £600, but let's say £1,000 and estate agents fees are typically either fixed or upto 2.5%, usually less. That's 3.5%, where's the other 6.5%?

10% is the Governments figure.

Housing_Benefit_Officer

Guest101 wrote: »

Why? That's literally an income.

Don't make the rules just implement them.

If the rental property is occupied by a disabled pensioner relative then it is 100% disregarded as capital.

If I was a landlord who fell on hard times I would fill all my properties with disabled related OAPs and the capital values of all these properties would be disregarded.

landlord2016

Thanks all.

Is there any telephone number to call and discuss ?
Most of the calculator online do not have property owner option .

Housing_Benefit_Officer

landlord2016 wrote: »

Thanks all.

Is there any telephone number to call and discuss ?
Most of the calculator online do not have property owner option .

Phone and speak to your local Housing Benefit Department.

property current market value - minus 10% - minus mortgage outstanding = capital.

Rental income - minus mortgage payments - minus agents fees - minus insurance and any other expenses incurred renting out property = income.

FBaby

If I was a landlord who fell on hard times I would fill all my properties with disabled related OAPs and the capital values of all these properties would be disregarded.

And then we wonder why more and more people want to leave this country!