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Original poster

Will we be eligible for housing benefit?

24 replies

nami777 · 02/10/2022 19:28

Hi so this is a tricky situation i am in,
my father has alot of health issues and could very soon,
the problem is my dad purchased a council house under the right to buy scheme getting a £100,000 discount, the property is also under my mums name,
we have alot of mortgage left and were not able to pay it and my dad pays all the bills when he dies if we have no money left or the bank snatches the house from us,
can we as a family claim housing benefit? (even though the house was brought under a right to buy scheme will this affect my mum from getting housing benefit?)

i am really worried and answers will be very helpful

thanks

OP posts:
feministqueen · 02/10/2022 19:30

Housing benefit isn't available to cover the costs of a mortgage...

Original poster
nami777 · 02/10/2022 19:31

no i mean if we are left homeless because the bank has gotten the house from us

OP posts:
Overthebow · 02/10/2022 19:38

who is us op? Do you live with your parents? Is it your parents house?

Overthebow · 02/10/2022 19:41

It will also depend on your incomes and situation.

Sooverthisnow · 02/10/2022 19:46

How old are you OP? Are you working or at school?
If your dad dies the house becomes your mum’s. Is the mortgage in joint names?
If the mortgage isn’t paid the bank ultimately will repossess it, but the council have a duty to rehouse you.
Your mum could sell the house and move to something smaller/ somewhere cheaper, or go into rented accommodation at which point you might be eligible for HB.

ThatGirlInACountrySong · 02/10/2022 19:48

nami777 · 02/10/2022 19:31

no i mean if we are left homeless because the bank has gotten the house from us

Housing benefit for where?

Chewbecca · 02/10/2022 19:51

Did you parents take out life insurance when they took out the mortgage? Or does your dad have any life insurance? That’s the most common way a mortgage is paid off when one party dies.

If not, the house will probably have to be sold and the balance of the mortgage paid off. Is there any equity in the house, i.e. what is the current value of the house compared with the balance outstanding on the mortgage?

frozendaisy · 02/10/2022 19:52

Best option sell the house at market price, which will give you £100k at least buffer. Rent until you as a family can sort out some sort of income between you all to cover rent or a new mortgage.

Well no best option would be for family to cover mortgage between you.

Krapom · 02/10/2022 19:56

Normally the bank insists that you take life insurance to cover the remainder of the mortgage - it’s a condition of the mortgage. I have mine with my bank. Ours pays out if we get many types of cancer etc even if we survive it. You should check with the bank if you have coverage.

If as a family you can’t afford the mortgage you should sell before it is repossessed. You’re more likely to get a good price and have some equity left. You will then be able to move into a rental with your credit rating in tact.

This is a horrible situation, but you need to actively work out your next steps. Check if you have insurance. Don’t wait passively for the bank to repossess.

Hearthnhome · 02/10/2022 19:56

Are there any terms attached to the right to buy scheme?

like how long he and your mum must keep it?

How long ago did he buy it? Does he have life insurance?

I would guess the best plan would be to sell the house. Rather than just have it repossessed.

Hwory · 02/10/2022 19:58

To answer the question - if your mum gets her house repossessed then goes into rented accommodation the previous house she owned won’t be used as capital for any benefits claims as she no longer owns that asset.

Hwory · 02/10/2022 19:59

I would suggest selling the house before that happens though.

LIZS · 02/10/2022 20:05

Don't let it be repossessed. Your dm could be left with debt(if the value does not pay off the mortgage plus costs) and be deemed intentionally homeless. Did df take out any insurance policies out to cover the mortgage?

CrossStichQueen · 02/10/2022 20:07

If you need to rent a property and are under pension age the only benefit you can claim for rent is universal credit, it is the housing element.

Housing benefit no longer exists for new claiments unless you are a pensioner and meet the financial criteria.

If you are talking about renting your dad's home then no you will not get housing benefit or the housing element but may be entitled to mortgage interest support but this is effectively a loan.
If you parents cannot pay the mortgage they will lose their home to their mortgage provider.

bellac11 · 02/10/2022 20:20

Sooverthisnow · 02/10/2022 19:46

How old are you OP? Are you working or at school?
If your dad dies the house becomes your mum’s. Is the mortgage in joint names?
If the mortgage isn’t paid the bank ultimately will repossess it, but the council have a duty to rehouse you.
Your mum could sell the house and move to something smaller/ somewhere cheaper, or go into rented accommodation at which point you might be eligible for HB.

Why would the council have a duty to rehouse?

CrossStichQueen · 02/10/2022 20:26

Why would the council have a duty to rehouse?

The council do have a duty to support those who are homeless and if the person meets set criteria they have a duty to house them, this can be temporary housing in a B & B for example.
So if OPs mum is elderly, there are children involved or illness/disability then yes the council do have to offer a form of housing.

Babyroobs · 02/10/2022 20:37

As others have said if you lose the house or have to sell then it would be Universal credit your mum would need to claim. If the house has to be sold and your mum has over 16k equity from the sale of the house then she will not be eligible to claim Universal credit. It would be best to sell rather than be repossessed. If your mum is already on universal credit and has no income then she may be able to claim support for mortgage interest.

Thenose · 02/10/2022 20:39

As above, housing benefit isn't a 'thing' anymore; it was replaced by the housing element of universal credit.

Universal credit is means tested. If your/your parents' household income is below a certain amount and you have under a certain amount of savings/capital, you'll qualify for help towards housing.

Why won't you/your mum be able to afford the mortgage if your father dies? Have you checked that everyone is getting everything they're entitled to? The benefits calculator on the entitledto website is very good. Please check; you might be surprised.

I'm very sorry about your dad.

oviraptor21 · 02/10/2022 20:44

Could you give us a bit more info OP?
How old are you and your mum? Are you living in the house? Are there any other children? How much equity is there in the house and what is the mortgage left on it?Also as others have said, does your df have life insurance? Is your mum on benefits or will she be if your dad dies?

CrossStichQueen · 02/10/2022 20:47

Thenos that's a good point.

If you dad is in poor health and under pension age he may be eligible for PIP which is a disability benefit. If he is state pension age he can claim Attendance Allowance which is similar/same as PIP.mum or anyone else maybe eligible for carers Allowance if they care for dad 35 hours or more a week.

bellac11 · 02/10/2022 20:48

Most people know what is meant by housing benefit

People dont have to go to great pains to keep describing it as 'the housing element of universal credit' , its such a catchy name

bellac11 · 02/10/2022 20:50

Presumably dad has an income now otherwise he wouldnt be paying the mortgage and bills at the moment, is this work income, pension, disability benefits?

If work, then does he have a work pension, there is normally a death in service benefit that pays out to the spouse or named individual on death. Not a nice thing to think about but needs to be discussed.

If its pension, again is there a pension payout to the spouse?

CrossStichQueen · 02/10/2022 20:59

People dont have to go to great pains to keep describing it as 'the housing element of universal credit' , its such a catchy name

But you do as housing benefit and the housing element are 2 completely different benefits.

HB is paid by the council and you apply for it via the council, it is only open to pensioners who meet the financial criteria.
HE is paid via DWP and is part of UC and is only for those of working age.
People waste weeks when they apply for HB only to find they are not eligible and should have applied for UC which then takes a further 5 weeks until payment in which time they run up rent arrears.

Babyroobs · 02/10/2022 21:02

CrossStichQueen · 02/10/2022 20:59

People dont have to go to great pains to keep describing it as 'the housing element of universal credit' , its such a catchy name

But you do as housing benefit and the housing element are 2 completely different benefits.

HB is paid by the council and you apply for it via the council, it is only open to pensioners who meet the financial criteria.
HE is paid via DWP and is part of UC and is only for those of working age.
People waste weeks when they apply for HB only to find they are not eligible and should have applied for UC which then takes a further 5 weeks until payment in which time they run up rent arrears.

Couldn't agree more with this ! No one except pensioners can make a new claim for housing benefit or some people in temporary/ emergency accommodation. It is the rent element of UC. Very different benefit administered by different places and with different rules !!

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