Universal credit for shared ownership property

Emmas85 · 2022-01-14T07:33:54+00:00

Hi, just looking for some advice and whether anyone has been in this situation before. I am a single parent and I work 40 hours a week but on a low wage so receive a universal credit top up at the moment for help with my rent. I am currently looking into the shared ownership scheme and hoping this will allow me to buy a house with the help of a gifted deposit from family. The combined mortgage/rent will actually be £10 more than my current rent now. I have looked online but the information is confusing and I'm not sure who to email for advice. I'm wondering whether universal credit would stop if I enter into a mortgage? I've read online that it may be possible to claim for the rent part of the scheme but this doesn't seem clear. Has anyone been in this position? In the long term I am hoping to change job and increase my wages but this is not possible at the moment. Thanks for reading.

gogohm · 14/01/2022 07:44

Generally you can only get uc for rent not mortgage. You need specialist knowledge on this.

Waxonwaxoff0 · 14/01/2022 09:26

Not sure on this. I'm a homeowner and I get working tax credits but obviously nothing towards housing costs. But it's a full mortgage, not shared ownership.

ThreeFeetTall · 14/01/2022 09:33

To buy shared ownership you would still need to pass the mortgage lenders affordability test (kits for a smaller loan amount) have you looked to see whether you could get the mortgage you need?

Kebabandchipsplease · 14/01/2022 09:51

This reply has been deleted

Message withdrawn at poster's request.

Newyearnewyearnew · 14/01/2022 10:03

I have shared ownership and work with uc top ups. I get uc for the rent but not the mortgage.

Newyearnewyearnew · 14/01/2022 10:06

Depending on how much you have to put down, would it be possible to buy a smaller share outright so you own a smaller share but only pay rent (no mortgage). May be less rent than you pay now and then when you are earning more you can get a mortgage and buy a larger proportion?

Pendolino · 14/01/2022 10:09

Book a free benefits check with your local Citizens Advice. They will be able to help.

Hwory · 14/01/2022 10:12

Your Housing Allowance would only be considered on the rental portion.

Original poster

Emmas85 · 14/01/2022 18:29

Thank you everyone.

OP posts:

Celso · 22/01/2022 22:24

Does anyone know whether I'd have to go through the 39 weeks waiting period if i claim Housing Benefit (UC) for the firstt time while on Shared Ownership. I just moved to mine and am expecting to get some benefits while my wife is on Maternity Leave. I mean on rent only, not mortgage or service charges. I saw a lot of conflicting info on waiting period for SO

Babyroobs · 22/01/2022 23:17

You will just get Uc rent element for the rent part and continue to get the lower work allowance.

Babyroobs · 22/01/2022 23:19

@Celso

Does anyone know whether I'd have to go through the 39 weeks waiting period if i claim Housing Benefit (UC) for the firstt time while on Shared Ownership. I just moved to mine and am expecting to get some benefits while my wife is on Maternity Leave. I mean on rent only, not mortgage or service charges. I saw a lot of conflicting info on waiting period for SO

There is no 39 week waiting period. If you start claiming Uc and you pay rent then you will get a rent element on your Uc claim.

Em197 · 14/08/2022 14:10

Hi,

Have been looking for some info on this myself. I recently made a claim to UC and live in a shared ownership property. In my first payment (last month) they paid the rent and service charges. Yesterday i recieved a letter stating that i had been overpaid the housing element and now my statement shows that no housing costs applicable! I have been trying to find out why this might have happened. I had some earned income in that period - would this have affected my entitlement to housing costs? I too was wondering about the 39 weeks situation.
I claim UC and contribution based ESA.
Also, they asked the other day about gaps in employment in 12 months prior to claim, i assumed due to benefit cap, which i am exempt from due to PIP entitlement. Am wondering if 12 months prior have affected entitlement to housing costs. Any advice gratefully recieved as it has thrown me and caused stress!

Babyroobs · 14/08/2022 16:27

Em197 · 14/08/2022 14:10

Hi,

Have been looking for some info on this myself. I recently made a claim to UC and live in a shared ownership property. In my first payment (last month) they paid the rent and service charges. Yesterday i recieved a letter stating that i had been overpaid the housing element and now my statement shows that no housing costs applicable! I have been trying to find out why this might have happened. I had some earned income in that period - would this have affected my entitlement to housing costs? I too was wondering about the 39 weeks situation.
I claim UC and contribution based ESA.
Also, they asked the other day about gaps in employment in 12 months prior to claim, i assumed due to benefit cap, which i am exempt from due to PIP entitlement. Am wondering if 12 months prior have affected entitlement to housing costs. Any advice gratefully recieved as it has thrown me and caused stress!

Yes earned income in your monthly assessment period will reduce your total UC entitlement ( rent element included). The whole award is reduced.
If you have the Limited capability for work and work related activity element on your claim then you should get a work allowance on your claim meaning that the first £344 of earnings is disregarded before deductions happen. I'm guessing you are not working many hours if on ESA ?

DownNative · 14/08/2022 16:40

I have a shared ownership mortgage and we have a joint UC claim as well. There is no rent aspect to our mortgage as its mortgage only - we could majority and devolved government owns the rest.

Not sure if that's any help.

Em197 · 14/08/2022 18:21

Hi,

I was below the work allowance amount of £344. I earnt £185 through permitted work, which has now ended.

What has happened is that my statement has been re-issued with no housing costs paid and an increase in work allowance to £547ish.

Basically i was told i would get the rent and service charge paid. And now it appears they have changed their minds about this! Saying i now owe them the housing costs paid last month. Just a debt management letter and change to my statement amount - yet no explanation.

SairAPip · 19/06/2023 14:11

Em197 · 14/08/2022 18:21

Hi,

I was below the work allowance amount of £344. I earnt £185 through permitted work, which has now ended.

What has happened is that my statement has been re-issued with no housing costs paid and an increase in work allowance to £547ish.

Basically i was told i would get the rent and service charge paid. And now it appears they have changed their minds about this! Saying i now owe them the housing costs paid last month. Just a debt management letter and change to my statement amount - yet no explanation.

What happened with this?

Universal credit for shared ownership property

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