Shared ownership rent and universal credit element

Chrisjay

Does anybody know of universal credit housing element will cover the rent portion of a shared ownership property as it is still rent as such. My wages would cover the mortgage repayments I just couldn’t afford to pay the rent and mortgage 

marcia_

Chrisjay said:

Does anybody know of universal credit housing element will cover the rent portion of a shared ownership property as it is still rent as such. My wages would cover the mortgage repayments I just couldn’t afford to pay the rent and mortgage 

 Do you already own this property? Because if not you are sure to fail the affordability test.

RunsFromRobots

Chrisjay said:

Does anybody know of universal credit housing element will cover the rent portion of a shared ownership property as it is still rent as such. My wages would cover the mortgage repayments I just couldn’t afford to pay the rent and mortgage 

Yes. It is mentioned here.

Chrisjay

We have passed the affordability calculator, we don’t own the home right now, as it’s shared ownership shelter say housing benefit will still pay as it’s classed as rent but just unsure 

teaselMay

Yes Universal Credit will pay the rent portion, and I believe most of the management fee/service charge as well - I'm about to complete on mine.

Sounds as though you've already gone past that far but the mortgage companies  count the rent as an expense but ignore the housing element of UC, which wasn't a pleasant surprise!

Chrisjay

Thank you, I take it my partner just applies for it like she does for our current rental ? 

teaselMay

As far as I know when you move in you report the change of address and then yes complete new housing costs information.

If you're entitled to any council tax discount make sure to get proof of that at the new address for the mortgage application. 

I expected to have a real battle in getting a mortgage, and was told by the housing association that I wouldn't be able to get one even though they could see that I could afford it. Ultimately it hasn't been an issue. Conveyancing has taken 4 months despite no apparent issues, just very slowly turning wheels

Chrisjay

Thank you, it’s not going to be done through a housing association, but though legal and general shared ownership scheme so a private scheme as of sorts, but I assume this shouldn’t matter you still have a landlord as of such so just give universal credit these details. Rent around here is £1200 a month for a 3 bed property and housing element doesn’t cover half of that, it’s only getting worse as all the landlords (ours included) are selling because it’s costing them too much. Rents have gone up £200 in the last 12 months alone 

teaselMay

Yup my landlord selling too.