Benefits if I own my home?

Dawn248

I'm buying a flat leasehold with the financial settlement from my divorce. We had to leave suddenly (abuse) and I wasn't working (as he wouldn't let me) so currently we are in a privately rented flat and I'm being awarded housing benefit, JSA, Child Tax Credits and Council Tax reduction while our family home was sold and the proceeds split.
The settlement from my divorce has been disregarded because I'm using it to house myself and my daughters.
I've read somewhere before that the fact I will own our flat outright should not affect me getting benefits like JSA, CTC and Council Tax reduction but I can't find this online now and would really appreciate some confirmation of this-I'm getting major cold feet!

I'm also getting the jitters about it being leasehold-apparently if I can't keep up with the utility bills or ground rent then there's a possibility the Landlord could repossess the flat, even if I've bought it outright! Obviously I intend to pay my bills but this is pretty scary. I thought buying somewhere would give us more security.

If anyone can put my mind at rest about any of this I'd be really grateful. Thanks.

Disclaimer
No benefit haters please! I never chose to be on benefits but we had to leave my ex husband for our own safety and I'm trying to use the small settlement as wisely as possible to give my daughters some security. I do intend to work to support us and in a few years be able to get a small mortgage so I can sell the piddly flat and get us a proper home.

poppy12345

Dawn248 wrote: »

I'm buying a flat leasehold with the financial settlement from my divorce. We had to leave suddenly (abuse) and I wasn't working (as he wouldn't let me) so currently we are in a privately rented flat and I'm being awarded housing benefit, JSA, Child Tax Credits and Council Tax reduction while our family home was sold and the proceeds split.
The settlement from my divorce has been disregarded because I'm using it to house myself and my daughters.
I've read somewhere before that the fact I will own our flat outright should not affect me getting benefits like JSA, CTC and Council Tax reduction but I can't find this online now and would really appreciate some confirmation of this-I'm getting major cold feet!

I'm also getting the jitters about it being leasehold-apparently if I can't keep up with the utility bills or ground rent then there's a possibility the Landlord could repossess the flat, even if I've bought it outright! Obviously I intend to pay my bills but this is pretty scary. I thought buying somewhere would give us more security.

If anyone can put my mind at rest about any of this I'd be really grateful. Thanks.

Disclaimer
No benefit haters please! I never chose to be on benefits but we had to leave my ex husband for our own safety and I'm trying to use the small settlement as wisely as possible to give my daughters some security. I do intend to work to support us and in a few years be able to get a small mortgage so I can sell the piddly flat and get us a proper home.

Owning your own home would not stop you claiming benefits such as JSA, CTC and CTR.

w06

check how much the ground rent is before you worry too much, depends a lot on what and where you're buying but a lot of places it's only a few pounds a year, literally. Or even not claimed, my previous house the lease holder was awol and it hadn't been requested in 20 years.

so long as you're living in the home that you buy it doesn't affect benefits (except housing benefit obviously)

good luck, house buying is stressful

Xbigman

A bigger issue with a flat is the maintenance charge, which benefits don't pay and which can be high. You are far better off with a small house if on benefits.




Darren

cattie

A freeholder in no way could repossess the flat if utility bills were not paid, so don't worry about that. It's actually very rare for a freeholder to repossess a leaseholder's flat even if they are in arrears for service charges or ground rent.

DWP would pay all or some of the service charges & ground rent if a claimant is on a means tested benefit. See here for some details
http://www.entitledto.co.uk/help/Charges-ground-rent-and-other-housing-costs

There is nothing wrong with owning leasehold, all flats are held on a lease & when you consider big cities such as London, where the greater part of owned accommodation is flats in the more central areas, buying a flat is nothing unusual.

I'm back in a flat again after many years of living in houses & really appreciate the fact that any maintenance issues are sorted out by somebody else & I don't have the hassle of having to arrange these things myself.

Xbigman

My cousin was unemployed and owned (mortgaged) a flat and tried to claim the £38 monthly maintenance charge but had £29 deducted as that was the portion of the charge not covered by benefits. That seems common where I live (South Glos).




Darren

Xbigman

That is interesting. Thanks.

Does it work the same if someone isn't on benefits. IE. Someone who lives off a company pension that is slightly more than JSA who owns their home outright. Could they get say, a new roof paid for if their roof leaked?


Darren

nannytone_2

readingfan wrote: »

No. It only applies to those in receipt of means tested benefits.

plus living in a leasehold property where they have no say in what mjor repairs are done and who by.

someone who owns their own home outright and receives income related benefits couldn't ask the DWP to pay for a new roof either

Xbigman

I was aware we were discussing leasehold property's, which is why I asked if the same could apply to freehold properties. It always helps to know the rules as these things are complicated.



Darren

robti

I would recommend that you check the terms of the leasehold to put your mind at rest no hidden clauses like doubling the amount every year or so

dirtycredit

I've just finished paying £15,000 for Major Works to a one bed ex council property which didn't get me new windows or a new roof. *cries into empty purse. The other kick in the teeth was that I only had two years to pay this - although I believe the law on the length of time they have to allow you to pay changed just after I was charged. (Of course!)

I'm buying a freehold as soon as I possibly can even though I totally love my flat. I definitely can't go through that stress again and I was in work so it would be even worse/impossible to do this on benefits.

Think carefully and good luck,

DC x