Does this sound credible

Cacran

My daughter is having problems with her relationship with her partner. She has a child which is not his. They have no children together.
We paid for her half of the house for her and the rest was on a mortgage in both their names.
If they split up, we said we would help her out.
She only works part time earning £550per month. She tells us she will be entitled to benefits if they split up. And she says she has looked into it, saying she would get £691 benefits and £230 tax credits a month. This sounds a lot to me.
Just wondered if this could be correct.

pmlindyloo

You/she can put her details into https://www.turn2us.co.uk to find out her entitlements.

If she is in a full service Universal Credit area and makes a claim for a new legacy benefit (housing benefit, tax credits, for example) then she would have to claim UC.

The 'sticky point' is the house. Did they have a legal agreement about what each other would be entitled to if they separated as regards the house?
What will they do about the house? Sell it?

Her capital in the house may affect her claim for benefits.

Sort out whether she is in a full service Universal Credit area first. Tell us about the potential arrangements for the house and we can advise further.

Check to see if she is in a full service Universal Credit area here:

https://www.citizensadvice.org.uk/benefits/universal-credit/before-you-apply/Check-if-youre-eligible-for-Universal-Credit/

xylophone

We paid for her half of the house for her and the rest was on a mortgage in both their names.
If they split up, we said we would help her out.

Is the partner leaving the property?

Are you going to buy him out?

pmlindyloo

Have just read this:

https://forums.moneysavingexpert.com/discussion/5896888/complicated-situation

Have things moved on from here as regards the house?

Cacran

Hi Lindyloo, no the situation hasn't improved. Nothing moved on yet. We are wondering if we bought the house, buying him out, if she could afford to live there. She says she has checked on this but it seems too good to be true.

Cacran

xylophone wrote: »

Is the partner leaving the property?

Are you going to buy him out?

Partner has not left yet and not even sure what will happen. We were thinking of buying him out.

calcotti

Assuming that you manage to sort out the housing and your daughter lives there rent free she will be able to claim either Tax Credits or Universal Credit depending on whether or not she lives in a Universal Credit area. You need to check this first as suggested by pmlindyloo in an earlier post. She may also be able to claim Council Tax Reduction.
Use a benefit calculator to check entitlement, again as suggested in an earlier post.

If she ends up renting she would get help with her rent through Housing Benefit or Universal Credit. However this is subject to her not having more than £16,000 of capital so if the house ends up being sold and some of the equity comes to her this could prevent her claiming benefits. Who owns the property, you or your daughter and was the money you originally gave her a gift or is it recorded as a loan repayable to you?

For Universal Credit a single parent over the age of 25 with no housing costs or childcare costs would have a standard monthly allowance of £317.82 and a child allowance of £277.08 making a total allowance of £594.90. They will also have a work allowance of £409 which means that £409 of her earnings are ignored. The excess earning are therefore £141 (based on earnings of £550). Of this only 63% is taken into account. So the UC payable per month is £594.90 minus £88.83 = 506.07. There may be Council Tax Reduction as well.

If the circumstances are different the amount payable will be different.

xylophone

Who owns the property, you or your daughter and was the money you originally gave her a gift

The parents gave her half the cost of the property as a gift.

https://forums.moneysavingexpert.com/discussion/5896888/complicated-situation

as now she has £75,000 coming to her, at least, if she sold the house, as we had to actually gift it to he

Cacran

I will check if we are in a UC area. Thanks.