Help with finding a home

elsiecat123

Hi, can anyone help?! 
My home is sold subject to contract due to a separation.
On completion I will have around £50000. I have applied to shared ownership and although my deposit is good I don't earn enough to qualify for the mortgage.
I can qualify once I claim universal credit but can't claim this until I have less than £6000 in savings. Then I won't have a deposit 😕.  Its a real catch 22 😔.
I've also tried to rent private but it's the same issue with affordability.
I'm really stuck and scared I'll become homeless. 😕 

BarelySentientAI

If you have £50k in cash, you will find someone willing to rent to you.

Grizebeck

Relocate to the north east . You can buy a perfectly good home for less then 70k!!

RHemmings

There are a number of things that I considered suggesting, but all had potential consequences and unknowns. I'll be watching this thread to see if there is any advice on what the boundaries are for disposition of assets before claiming universal credit. 

One simple answer: Move to Sunderland and buy a small flat for cash. 

elsiecat123

Thanks everyone. Unfortunately I can't relocate as I have 2 children, a job and family here. 
I have spoken to letting agents and there are not enough houses for the demand so houses are let to people who earn 2.5x the annual rent. Landlords can have the pick at the moment. 

Grumpy_chap

elsiecat123 said:

Hi, can anyone help?! 
My home is sold subject to contract due to a separation.
On completion I will have around £50000. I have applied to shared ownership and although my deposit is good I don't earn enough to qualify for the mortgage.
I can qualify once I claim universal credit but can't claim this until I have less than £6000 in savings. Then I won't have a deposit 😕.  Its a real catch 22 😔.
I've also tried to rent private but it's the same issue with affordability.
I'm really stuck and scared I'll become homeless. 😕 

I understand that money from the sale of a home can be disregarded for a certain period of time before it is considered with respect to benefits.  I am not knowledgeable on the details of how this works.
The OP may be worth asking on the "Benefits and Tax Credits" section of the forum to understand whether this disregard is possible and how it is operated.

RHemmings

Do you have family members who have a very good trusting relationship with you and who would go to considerable efforts to help you? 

gwynlas

What part of the country are you in and have you registered for social housing? You might be entitled to emergency accomodation if you do not meet affordability for private rental. How old are yoour children?

elsiecat123

I do have a supportive family but the don't have enough space for us to stay there temporarily or much money.
I live in Gloucestershire. I have phoned my local housing authority. They can't help until the house has completed so will effectively be homeless from that day

M25

You'll have to speak to more letting agents and see if they can find you a long term let where there's a large amount paid upfront (or the whole amount let's say 12 months). You can continue to look for property yourself too.

From what you say (having children) your local authority will be legally obliged to house you immediately after the sale. This may not be a perfect situation but you will be housed.

I think the 2nd option is best as it's nobody's business at the moment about the money. The less people that know the better until they need to know.

How much time do you have to prepare? Get going and plan everything you may need temporary storage for your personal property. When the council house you it may be a B&B for  a week or a month and then on to a proper home. Nobody knows really so you need to be prepared.

A massive change in your life but you'll get through it with planning and being realistic. Just be glad you have a bit of money on hand.

Good luck.

peteuk

elsiecat123 said:

Hi, can anyone help?! 
My home is sold subject to contract due to a separation.
On completion I will have around £50000. I have applied to shared ownership and although my deposit is good I don't earn enough to qualify for the mortgage.
I can qualify once I claim universal credit but can't claim this until I have less than £6000 in savings. Then I won't have a deposit 😕.  Its a real catch 22 😔.
I've also tried to rent private but it's the same issue with affordability.
I'm really stuck and scared I'll become homeless. 😕 

Who ever is advising you is wrong…
Claiming UC is down to your circumstances, equally local authority housing will need to look at your situation before housing you.                         

The cut off for capital for claiming UC is £16K, so you can claim UC with up to £16K in capital.  What will happen is anything above £6K will see a reduction in your UC of £4.35 for every £250 or part of above £6K.  So if you have £6001 your UC is reduced by £4.35, £6501 then its £8.70 etc etc.

As previously noted the monies from the sale of a house can be disregarded for 6 months, if at the 6 month period you can show your actively buying a house this can be extended.  EG  Your 6 months is up 01 March, but youve a completion date of 20 March.

What is stopping you from claiming UC now?  If your separating then if your eligible  when they house is sold then your eligible now.  Use a benefits calculator to see what you can claim.