Disabled and getting a property

MoraMe

Hi, :j

I wondered if you can advise please. I have a long-term worsening disability, and am looking to be in more secure housing, even getting my own property. How can I go about this?
I receive PIP (disability benefit) My income is less than 10K/year (few hours/ self employed is all I can manage), but as I once worked full time, and I'm very careful, I do have some £25K savings still which I am gradually using up. Therefore I don't qualify for income-related benefit.

I am currently 40 and still in a house share, and struggling to be in insecure accommodation, with various possible needs ahead as my condition worsens. Problem is, with my brothers I actually already own a third of a property in London (which I don't currently benefit from at all) . So I don't know if I qualify as first time owner and therefore the special disabled help to buy scheme, or any other help.

It's all a bit of a mess with this joint flat ownership. My Dad inherited a 2-bed flat. It is with a £250K mortgage and worth over 600K, as its in an up-and-coming area of London. My Dad's in such bad financial state that he would have lost the flat, and not used wisely any left over money after paying his huge debts, and fixing his ramshackle house. So my Dad decided to transfer the flat by deed of variation to his children. That way, we could take on the mortgage jointly, give him an income, and 'rescue; our Dad. Then only in the long term, my Dad was hoping it would help us, by being on the property ladder.

Me and my brothers have now got an interest-only mortgage, so that our Dad can get a good monthly income from renting out the flat. This was all my brother's organizing, the mortgage and all. I have to admit because of my autism, I just went along and didn't really understand it all. My brother even made me an employee of his for a while, for the sake of the mortgage. My brothers currently now aren't in stable jobs.

But now, I don't know what to do for my own housing security and future. My Dad was trying to help us in the long run, by putting our names on the flat. But at present I am not benefitting from the house, it is just to help our Dad. Meanwhile, because of this household ownership and having such a low income, I can't get somewhere to live. I am finding it hard to even rent, because landlords all want proof of income, and mine is so variable.

Any ideas about how to deal with this? How to own a place or at least get somewhere secure to live, that can be adapted if needed? Do I need to get out of this mortgage somehow, or is that foolish?

Many thanks!!, :T

Socajam

MoraMe wrote: »

Hi, :j

I wondered if you can advise please. I have a long-term worsening disability, and am looking to be in more secure housing, even getting my own property. How can I go about this?
I receive PIP (disability benefit) My income is less than 10K/year (few hours/ self employed is all I can manage), but as I once worked full time, and I'm very careful, I do have some £25K savings still which I am gradually using up. Therefore I don't qualify for income-related benefit.

I am currently 40 and still in a house share, and struggling to be in insecure accommodation, with various possible needs ahead as my condition worsens. Problem is, with my brothers I actually already own a third of a property in London (which I don't currently benefit from at all) . So I don't know if I qualify as first time owner and therefore the special disabled help to buy scheme, or any other help.

It's all a bit of a mess with this joint flat ownership. My Dad inherited a 2-bed flat. It is with a £250K mortgage and worth about 5 Million, as its in an up-and-coming area of London. My Dad's in such bad financial state that he would have lost the flat, and not used wisely any left over money after paying his huge debts, and fixing his ramshackle house. So my Dad decided to transfer the flat by deed of variation to his children. That way, we could take on the mortgage jointly, give him an income, and 'rescue; our Dad. Then only in the long term, my Dad was hoping it would help us, by being on the property ladder.

Me and my brothers have now got an interest-only mortgage, so that our Dad can get a good monthly income from renting out the flat. This was all my brother's organizing, the mortgage and all. I have to admit because of my autism, I just went along and didn't really understand it all. My brother even made me an employee of his for a while, for the sake of the mortgage. My brothers currently now aren't in stable jobs.

But now, I don't know what to do for my own housing security and future. My Dad was trying to help us in the long run, by putting our names on the flat. But at present I am not benefitting from the house, it is just to help our Dad. Meanwhile, because of this household ownership and having such a low income, I can't get somewhere to live. I am finding it hard to even rent, because landlords all want proof of income, and mine is so variable.

Any ideas about how to deal with this? How to own a place or at least get somewhere secure to live, that can be adapted if needed? Do I need to get out of this mortgage somehow, or is that foolish?
Many thanks!!, :T

Sell the 5 million pound property, give each person their share and your problem is solved - not sure about the tax situation - but all four of your will have a sizeable of money to live comfortably.
Also what is the point of having this property and not living your life comfortably.

[Deleted User]

If the house and mortgage are in your name then you should be benefitting from the rental income and paying tax on it. You can't simply decide that the rental income should go to your father. The whole thing is such a mess that I think you need to get professional advice on where you stand legally and in terms of tax due.

MoraMe

Thanks very much for the advice. I'll ask my brothers about tax and legal advice. BTW, I typed in the wrong figure for what the property is worth. About 600K not 5 million!

MoraMe

Thanks very much. That would be sound advice, but I typed in the wrong figure. ! It's worth 600K, the property not 5Million. So that's much less.

[Deleted User]

£600k or £2million, it doesn't matter, the best thing for you would be to cash in so you can afford to buy somewhere outright because I think your chances of a mortgage as things stand are slim to none.

[Deleted User]

In fact it might be worth speaking to someone about financial abuse because if your family have used your autism to hoodwink you into this arrangement then it sounds like financial abuse to me.

Socajam

Lover_of_Lycra wrote: »

£600k or £2million, it doesn't matter, the best thing for you would be to cash in so you can afford to buy somewhere outright because I think your chances of a mortgage as things stand are slim to none.

Even so you have at £600, your share should be able to allow you to purchase somewhere even a 1 bedroom place - depending on which part of the country you are located.
I would look at this option. You really should not be in this position, seems as if you re putting up your life for what.
Get this resolved, find somewhere to live that you can be comfortable and move on with your life.

calleyw

MoraMe wrote: »

I do have some £25K savings still which I am gradually using up. Therefore I don't qualify for income-related benefit.

Even when you are under 16K you will still not get any means tested benefits. As you have an asset worth over 16K, the house. I assume you have informed DWP about the house and the rent? even though you don't get the payment.

You are a home owner you just don't live in it. So no first buyer incentives etc

Do NOT ask your brother for tax and legal advice. Get your own independent advice. The rental income is yours and your brothers. So there maybe tax to pay and also when the house is sold then there as Captial Gains Tax as its has never been your primary home.

Sadly your family have done you no favors.

I wish you the best of luck sorting out this out.

Yours

Calley x