Sorry forgot to mention that the Housing Ass can (and does) increase rent annually but this has to be within certain limits. Don't forget you also have to pay a service charge. Mine is £95 per month for a tiny 2 bed flat.
I can buy my share outright (a very small share!) - would not get a mortgage as not working.
i am holding back some money to pay the rent part and bills etc until i get a job, but i am worried to take on the commitment if i would not be eligible for housing benefit if it all went wrong - ie i couldn't find enough work to warrant the child care costs..
thanks for the service charge advice - they have not mentioned this, just rent and percentage of insurances.
curlysmum - can you let me know how you know that hb is payable on the rent side? I've been trawling websites and can;t find anything specific.
The housing association have said i am eligible to buy as i wont be taking out a mortgage but they are concerned that i am not employed.
I know quite a bit as I work in shared ownership .
HB does pay rent on shared ownership , you would fill in the forms then the council does write to the Housing Association to confirm the rent payable and Service Charges.
This is where a lot of people fall into difficulty as most councils will not pay the Service Charge element and then the people on benefits fall into difficulty with arrears. It depends very much how the Service Charge is billed and what it includes ,whether a Managing agent bills it or if it is included in with the rent and policies also can differ from borough to borough .
If you fall into difficulty due to Service Charge arrears then the HA can ask your mortgage lender to pay and add it to your mortgage but if you have no mortgage lender then it does leave you in a difficult situation . I have seen many people get into Service Charge arrears due to rising costs. Hope this help a bit will check back if you have any ther questions
I don't think the entitledto calculator will answer this as it is too specific. As far as I know you can't claim housing benefit if you have any assets or equity over 6k, which presumably you will have? Why not book a benefits advisor appt at your local council?
Surely people should be using their deposit/ savings to pay rent not claiming housing benefit? I don't think it's possible to use a lump sum of savings to pay a deposit or buy a share of a house then try to claim housing benefit to pay the rest of the rent. Isn't this classed as deprivation of capital ? As pp says you cannot have savings over £6k and claim Housing benefit.
I have a shared ownership apartment and I claim housing benefit for the rented part, we own 30% outright. The council see the rented part as any other rental so there's no reason why you shouldn't claim HB for that part provided you meet the other conditions like maximum savings.
I was working when we bought it and there was a minimum salary requirement for our scheme. . So you'd need to check whether you'd be eligible for the SO scheme since you're not working. I think the trickier bit will be buying the property in the first place as the eligibility criteria is quite specific and it also differs from scheme to scheme. Once you have managed to get a property, there aren't really any obstacles to claiming housing benefit (although I don't know about universal credit, it's worth checking if there are any differences if you were on UC as you will be transferred to it eventually). I lost my job a few years after buying and haven't returned to work since, and get HB for rent and it also covers part of the service charges. I am lucky that I get PIP which helps to cover the cost of the mortgage, and it is quite small as I didn't stretch myself.