Can I claim Housing Benefit once my house is sold?

wurzel1972

Hi, I am really hoping someone can help me with this one... I will give some background info first.
I am currently a single parent with 3 kids under 16, work 16 hours pw and claim WTC and CTC. I bought a house in 2006 on an interest only mortgage which is around £700 a month. I had about £15000 to put down as a deposit. With my low income I am struggling to pay this every month. I am thinking of selling my house and renting for the foreseeable future as I think I may be entitled to HB? Does anyone know if I have to use the deposit that initially went into the house to pay the rent before I can get HB? Thanks for any help in advance.

terryw

wurzel1972 wrote: »

Hi, I am really hoping someone can help me with this one... I will give some background info first.
I am currently a single parent with 3 kids under 16, work 16 hours pw and claim WTC and CTC. I bought a house in 2006 on an interest only mortgage which is around £700 a month. I had about £15000 to put down as a deposit. With my low income I am struggling to pay this every month. I am thinking of selling my house and renting for the foreseeable future as I think I may be entitled to HB? Does anyone know if I have to use the deposit that initially went into the house to pay the rent before I can get HB? Thanks for any help in advance.

In a word "yes" as HB is a means tested benefit. When you claim HB you are asked about your last dwelling and if it was sold. However the first few thousand of £s are disregarded...not sure of the current figure offhand. No doubt another MSEr will let you know this.

terryw

dmg24

How much profit will you get from the sale of the property (including the deposit)? Will you be planning to buy again in the near future, or rent long term?

What is your income, including WTC and CTC?

wurzel1972

Hmm, that's what I thought, but I think I should be much better off if I rented and quite frankly on an interest only mortgage, that's what I am doing anyway! At least that way I would get some extra help...I think!

wurzel1972

I dont think I will make a profit, probably just get back what I put in. My income, wages WTC CTC and maintainance is roughly £400 a week. Sounds reasonable, I know but with all other household bills I am practically left with nothing!

wurzel1972

Oh.. not bothered about buying in the future just long term rental will do.

terryw

wurzel1972 wrote: »

I dont think I will make a profit, probably just get back what I put in. My income, wages WTC CTC and maintainance is roughly £400 a week. Sounds reasonable, I know but with all other household bills I am practically left with nothing!

Remember though for HB it is capital not profit which counts.

terryw

rdpro

I believe the savings ceiling for means-tested benefits is 16,000 - however, it's easy (if not necessarily moral) to avoid this by putting the money into, say, a child's account (tax free interest too!).

terryw

rdpro wrote: »

I believe the savings ceiling for means-tested benefits is 16,000 - however, it's easy (if not necessarily moral) to avoid this by putting the money into, say, a child's account (tax free interest too!).

If a house has been sold and HB is claimed, questions will be asked about where the capital has gone.

terryw

rdpro

terryw wrote: »

If a house has been sold and HB is claimed, questions will be asked about where the capital has gone.

terryw

it can be 'gifted' to the offspring..

details from DWP:

If you live with a partner, only one of you can get Housing Benefit.
Unless you are aged 60 or over and receive the guarantee credit of Pension Credit, savings over £16,000 usually mean you cannot get Housing Benefit.
Savings over £3,000 (£6,000 if you or your partner are aged 60 or over) affect how much Housing Benefit you can get. From 10 April 2006, this will increase to £6,000 for all.
There are special rules if you are single and aged under 25 years.
If you have come to the United Kingdom (UK) within two years of your claim, this may affect Housing Benefit.
Most asylum seekers and people who are sponsored to be in the UK cannot get Housing Benefit.
You cannot usually get Housing Benefit if you live in a close relative's household.
You cannot usually get Housing Benefit if you are a full-time student, unless you are disabled or have children.
We use partner to mean a person you are married to or a person you are living with as if you are married to them.

wurzel1972

Thanks guys. I suppose it's only fair if I have the money I should use it for rent until it runs out. Maybe they won't notice if I use some to take the kids on holiday??!!