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    • Kieran2001
    • By Kieran2001 8th Feb 18, 6:03 PM
    • 24Posts
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    Kieran2001
    Moving from Bought House to Long-Term Rented
    • #1
    • 8th Feb 18, 6:03 PM
    Moving from Bought House to Long-Term Rented 8th Feb 18 at 6:03 PM
    Hello,

    Me and my parents currently live in a 3 bed room house in a town on the outskirts of County Durham. We are planning to move to a 3 bed room rented house in the same town, which has a smaller footprint, as my parents donít want to deal with the possibility of anything going wrong in the house as my parent has a low income and has recently split from my other parents permanently after 25+ years.

    My parents have had a mortgage on the house for about 20 years, and the mortgage still has a few decades left and the price of the mortgage isnít going down, pretty much just paying the interest. My parent has received a 25% reduction as she is the the only adult living in the house.

    My parents concern is that if they move from mortgage to rented, they will have to pay council tax until the mortgaged house sells which could be 3-6 Months. Is there any additional reduction schemes she can use, as she is on low income and divorced? She is unable to pay 2 council taxes, however she also canít afford to pay for repairs if thereís faults in the house, such as a pipe bursting, two breaking etc.

    Thanks fo any advice, and let me know if you need any further information to assist me.
Page 3
    • Cakeguts
    • By Cakeguts 8th Feb 18, 8:59 PM
    • 4,180 Posts
    • 5,910 Thanks
    Cakeguts
    None of the reasons you have given are good ones for not selling the house before moving into rented. The fact that her ex wants her to sell the house is good because that means he isn't going to block the sale.

    All the rest the letters, pipes, mortgage, estate agents fees etc are not good reasons not to sell the house.

    If your mum can't afford to pay the mortgage and mend the pipes then she can't afford to do all that and pay rent at the same time. She will not get benefits to help pay the rent while she still owns a house. She will have to sell the house first. If she fails to pay the rent the landlord will take her to court to get the house back. The council will not rehouse her. They don't give council houses to people who already own houses or who do not pay their rent.

    Councils run extensive checks on people before they give them any benefits.
    • Cakeguts
    • By Cakeguts 8th Feb 18, 9:04 PM
    • 4,180 Posts
    • 5,910 Thanks
    Cakeguts
    Part of the reason I still use these boards even when they inevitably lead to an anxiety-fueled crash is that I like to feel like I'm contributing something to the world. It ofsets the constant guilt of being a "scrounger". Right now, I really don't think I'm contributing. I feel like this young man's mother is going to make this bizarre financial decision--funded by a wing, a prayer and her son's disability money--regardless.
    Originally posted by Penitent
    People eligible for getting PIP are not scroungers. I like to pay tax to help the vulnerable in our society. Scroungers are people who are perfectly able to get a job but choose not to and expect others to pay for their children and themselves to have a lifesyle of leisure paid for by others. No one can help getting ill.
    • Kieran2001
    • By Kieran2001 8th Feb 18, 9:05 PM
    • 24 Posts
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    Kieran2001
    So it's potentially just a cover letter with a typo at this point? You haven't even had a Mandatory Reconsideration?
    Originally posted by Penitent
    No, the DWP hasnít acknowledged any phone calls. Also, Iíve had PIP since 2009, only last year they did a reassessment and magically went from top band to nothing at all.
    • Cakeguts
    • By Cakeguts 8th Feb 18, 9:09 PM
    • 4,180 Posts
    • 5,910 Thanks
    Cakeguts
    No, the DWP hasnít acknowledged any phone calls. Also, Iíve had PIP since 2009, only last year they did a reassessment and magically went from top band to nothing at all.
    Originally posted by Kieran2001
    So until this is sorted out you won't get any money towards paying the rent on the mythical rented house so this means that your mum will have to get going on selling the one she currently owns.
    • FTBScotland
    • By FTBScotland 8th Feb 18, 9:30 PM
    • 7 Posts
    • 20 Thanks
    FTBScotland
    I think what you need to do is take mum down to the Citizens Advice Centre and lay it all out with them - the debts, the ex issues, everything. Don't jump into renting before you have income sorted, and like others have said, it'll end up costing way more and if you were to lose the rental too you wouldn't get homeless accommodation either (you'd be classed as intentionally homeless).
    • Cakeguts
    • By Cakeguts 9th Feb 18, 12:50 AM
    • 4,180 Posts
    • 5,910 Thanks
    Cakeguts
    Hello,


    My parents concern is that if they move from mortgage to rented, they will have to pay council tax until the mortgaged house sells which could be 3-6 Months. Is there any additional reduction schemes she can use, as she is on low income and divorced? She is unable to pay 2 council taxes, however she also canít afford to pay for repairs if thereís faults in the house, such as a pipe bursting, two breaking etc.

    .
    Originally posted by Kieran2001

    This is the bit that I think no one understands. I certainly don't.

    The point is that there are no reductions at all that she can claim while she still owns a house so I don't understand the bit about additional reductions. She would have to pay both the mortgage and council tax for the house that she didn't live in and the rent and council tax on the house she would be moving to. She is not eligible for benefits to help with the rent because she owns a house and there are no benefits to pay a mortgage only short term help with interest if you lose your job.

    She must not claim benefits for the rented house if she tries to do this the council will find out and she could be convicted of benefit fraud. You are not allowed to claim benefits to pay rent if you own a house. Councils carry out checks on people claiming benefits to help with housing costs so if she has already started to do this she needs to end the claim.

    Being evicted by a private landlord means that she will not get a council house as they don't give houses to people who do not pay rent as this is classed as intentionally homeless. They also don't give houses to people whose houses get repossessed because if you can't afford to pay the mortgage you are expected to sell the house.
    • deannatrois
    • By deannatrois 9th Feb 18, 1:48 AM
    • 5,301 Posts
    • 7,436 Thanks
    deannatrois
    I totally agree with the above post where it is suggested your mum is hoping to leave the mortgaged house and run away from the debts 'started' by her ex. I am sorry, going to help but she didn't haven't accept delivery of a single item she didn't want ordered by her ex.

    Your mother needs to make a list of all the debts. She may have already done this. Eventually, hopefully the ex will be forced to pay to help with financial costs he has built up but the divorce and financial affairs in relation to their split is the only thing the solicitor can be relied upon on to help with. And remember every hour of help she gets from the solicitor will need to be paid for. CAB or debt advice charities (I do mean charities, not paid for debt company advice which are often scams) don't.

    Right now she is living in chaos but if she goes to the CAB, Stepchange she can get debt counselling. She can sell some of the furniture she has and doesn't want (won't get much compared to what she has spent but it will be something that will help).

    Its not true that she has no possibility of help from a council for rehousing due to debts but she will have to prove that the debts aren't her fault, that she just doesn't have enough coming in. To do this she will have to demonstrate she has done everything she can to make sensible payments on the debts. Which introduces debt counselling again. Renting privately will be very very difficult with large debts hanging over her, affecting her credit score. Impossible if she already has CCJ's.

    I also agree that you need help with your benefits. CAB again or a specialist Charity(specialist charity that will help you deal with the condition that is causing the disability) that will help you deal with your appeal for DLA. Is it DLA or PIP? Are you getting ESA or Universal Credit as an independent Adult? Have you investigated whether you can? How old are you? Are you still within the time limit to get an MR? Have you applied for the reasons you were refused benefits and given nil points? Go on the disability benefits board to get seperate advice for this issue but CAB are good alternatives, probably better because you can take all your paperwork to them.

    To Summarise:

    1. Your mum needs Debt counselling (not from the solicitor).
    2. You need help with benefits advice.., possibly your mum does too.
    3. You all need advice on what to do about Housing. CAB can help with that too.
    4. The solicitor needs to be used only to deal with Divorce matters and gaining a financial separation from your father. Not debt advice. And it will cost. There is also something called Wikivorce https://www.wikivorce.com/divorce/

    But what benefits advice you will get depends to some degree on your age. How old are you?

    Those are starting questions. I hope you can answer them. All this can be sorted out. But it will take tenacity and patience and advice from the right organisations. It won't be a pleasant process but running away from the debts won't help. It will only delay things slightly. It will all start up again once the creditors find your new address. I also agree that throwing money away by using places that will sell your house for less than its worth is something you really can't afford to do given the family's financial status. This should only really be done once your family's divorce is further along, and a financial status (what needs to be paid to your father) is determined.
    Last edited by deannatrois; 09-02-2018 at 2:02 AM.
    • p00hsticks
    • By p00hsticks 9th Feb 18, 2:42 AM
    • 6,107 Posts
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    p00hsticks
    This is the bit that I think no one understands. I certainly don't.

    The point is that there are no reductions at all that she can claim while she still owns a house so I don't understand the bit about additional reductions.
    Originally posted by Cakeguts
    The OP stated that the mother currently gets a 25% single person reduction as she is the only adult in the house.

    They're looking to see if there is any other reduction in council tax available if she moved out of the house and into rented accomodation prior to selling - in fact, it's likely to go up as the single person discount won't apply to an empty property, and she'll also be having to pay a fresh set of council tax (albeit with 25% single person discount) on the rented property as well.
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