Universal credit rent help, if renting from a former partner/remaining in marital home?

[sallysm]

Whilst discussing my future divorce here, and options to manage financially, it was mentioned several times that I and stbx should probably best sell the marital home, and that I should rent a place instead, for which I may get help towards paying the rent as part of universal credit.

This got me thinking - is it possible to remain in the marital home, (its mortgaged solely to my stbx) but rent it from my stbx as technically he owns it, as he's the only one on the deeds? (Guessing he might have to change the mortgage to a buy to let type and serve me with a commercial contract) And thus be eligible to claim the rent portion of UC? (Though not sure how this would affect splitting the equity in the house as part of divorce)

Does anyone have any experience with any aspects of this?

It sounds like it sort of makes sense to me, rather than moving out only to rent off another private individual, and suddenly being eligible for £550 ish extra rent help from UC. I expect if I remained in the marital home paying rent to stbx, it could be worked out cheaper than that too.

I did phone UC helpline up and briefly ask someone. The lady seemed to say it sounded ok to remain in the home, pay rent, and potentially get help with the rent. But when I looked online I found some information about it which seemed partly confusing, possibly because housing benefit and universal credit are two separate things, both mentioned, and each with their own criteria:

"Renting from a former partner
Under universal credit rules, there's no restriction on renting from a former partner as long as it's a genuine commercial agreement.

Under housing benefit rules, you can't claim in either of the following situations:

-you used to live in the home as a couple
-you have a child together who is under 16 and lives with you

Renting a home you used to own
Under universal credit rules, there's no restriction on renting a home you used to own as long as it's a genuine commercial agreement.

You can't usually get housing benefit if you owned the property within the last 5 years unless you had to give up ownership so you could continue to live there.

Example: A relative buys your home because you can't afford the mortgage payments. You continue to live there and pay them rent. To get housing benefit you would need to show that you're renting on a commercial basis and you had to sell your home to avoid mortgage repossession."

I'd appreciate your insight / thoughts - thanks

Is the home not a marital asset and then half yours anyway? How much equity is in it?

I think there's about £50k equity. But until anything is further discussed/agreed, I don't know what percentage I would get, or when.

Ok so surely £25000+ is yours.
Have you got qualifications? What did you do before kids?

Holy fuck op, after reading your other posts, you're still not getting the message.

If you have assets over the limit (ie your share of the equity, which you want 100% of, so £50k) you will not be entitled to benefits. Your own research suggests you cannot rent the former matrimonial home and claim towards the rent on UC, which you will be on if you make a new claim.

And, you're STILL assuming your ex will be able to get a second mortgage so that you can attempt to wangle the system and live at minimum outlay whilst he and the taxpayer fund your life.

Three lengthy posts and you still aren't even considering the possibility of getting 'a little job' - when this goes to court, and it will, if you are so determined to try and screw over your ex and make him pay for the next 14+ years, you WILL be expected to maximise your income to live independently from your ex, whose only financial obligation is CM to your dc.

You will get at least £25k
You move out when that £25k hits your account.
Then you need to use that £25k to either

• get a mortgage

Or -rent a new home. Once the £25k is under £16k (I think?) you get some UC.

If you want to rent from your ex using UC then he needs to buy a new home and rent that to you. He still has the problem of not being able to get a mortgage. Even if things are amicable now, things can change quickly especially when he meets someone new and wants stability with her. I wouldn't recommend you going down this route because it relies on him finding a partner who is happy for him to move in or he inherits another property that he can live in. Plus it's ethically dubious getting the taxpayer to pay his mortgage via UC.

No you will not be allowed to do that. Its benefit fraud. You are depriving yourself of an asset. Not allowed.

Yeah, nice try at staying in a home you cannot afford and getting your ex or the taxpayer to pay for it, but it won't work. the housing benefit element of UC is also subject to LHA caps and bedroom tax in England and Wales.

@sallysm

I think there's about £50k equity. But until anything is further discussed/agreed, I don't know what percentage I would get, or when.

Given that you're going to get at least 15k,the matter is irrelevant as you'd not be entitled to uc. Then you'd have issues with depriving yourself of assets. So you may well find that you won't get anywhere close to 550 as for every pound over 6k you'd get this amount reduced by 4.35 for every part of £250. Do you work? Have children?

@sallysm you will not be able to do this I'm afraid. Are you and STBX amicable? Have you both spoken about what your plans are with house? Does he want to sell?

I understand you are probably in shock, and feeling affronted as what's happening is not your choice. However, you do need to be realistic.

When me and my ex split 6 years ago, my DC were 12 & 8. I always worked part time from when they both turned 9 months old. When he left, I got a new job (part time term time) but more hours, so that I could still be home for my DC after school, with small amount of CMS from Ex and Tax Credits to top up my salary. Once they'd adjusted to the situation and were then 14 & 10, I moved jobs to full time (term time). My DD had to go to after school club got 1 year before then going to secondary school. Again, CMS & Tax Credits.

DC are now 17 & 14 (time goes v quickly!) my Tax Credits & CMS are reducing (obviously) and so now it's time to make another change. I'm applying for better paid full time jobs so that I can support myself and my DC.

OP you REALLY need to change how you are perceiving your situation. The onus is on YOU to support YOURSELF by getting a job. Whether you planned to or wanted to or not. That is the reality. Surely you worked before you had DC??

@sallysm also, just to add. I live in the MFH with DC as I pay the mortgage. If I didn't work, I wouldn't be to.

Just re UC. They can waive a lump sum of capital for a house purchase.
But also to think about - your DC is a preschooler so even if you got UC you'd be expected to fulfill conditions like looking for a job and attending back to work interviews.

It's not easy. But working really is the way forward. Or at least training/working part time and so on so as your DC gets older you'll be in a position to buy a house.

On one hand the whole thing sucks. But on the other you have a bright independent future and do walk away with some money to set you up.

https://england.shelter.org.uk/housingadvice/benefits/claiminggbenefitsiffyourenttfromfamily

Here's the advice from Shelter OP. I'm not sure on how UC or housing benefit differs but it looks like you can't claim housing benefit if you're renting from a former partner. It says there's no restriction under UC though.

@blackcurrantjam

Just re UC. They can waive a lump sum of capital for a house purchase. But also to think about - your DC is a preschooler so even if you got UC you'd be expected to fulfill conditions like looking for a job and attending back to work interviews.

It's not easy. But working really is the way forward. Or at least training/working part time and so on so as your DC gets older you'll be in a position to buy a house.

On one hand the whole thing sucks. But on the other you have a bright independent future and do walk away with some money to set you up.

Only for 6 months.

Yes it's true the starting point is 6mo but financial wrangling can go on longer so it's case by case x

I had £75k in my account for 7m after my former marital home was sold (7 years ago, pre universal credit) and I was still able to claim everything I had previously.

BUT, I had a job (min wage), I was studying part time, I was able to evidence the long and very drawn out court proceedings, AND that I was in the throes of purchasing my new home which completed in the 7th month.

I don't think op stands a chance of claiming anything with £25k-£50k in the bank with no plan to use it to purchase another home. Which she won't be able to afford if she won't get off her backside and get a proper job rather than rely on her ex and the state to support her.

You can't rent your own house and claim benefits to pay for it
It doesn't matter if it's solely in his name, you own half of it
If you weren't married and he owned it then you could.

hmm. Thanks for your replies. Quite a bit to digest...

OP you're putting time and energy into this that you could use to start to move forward. You're not going to find a magic solution that will let you stay on the FMH without getting a job and being able to take over the mortgage or at least the mortgage payments. Though if you can't get STBXH off the mortgage within a couple of years I don't think just taking over the payments would be enough for court. The court doesn't care about who did what or didn't do what, or broke vows. The judge will find a settlement that they believe is financially balanced between both parties needs and earning power. Living in a house you own is a want, being adequately housed in your case with 1DC would be a two bedroom flat, not a mortgaged house. You need to start focusing on what is realistic and working out how much you actually need to live. Rent and bills on a two bed flat, expenses to run a car or use public transport. If you don't have a car might possibly be a good use for a chunk of your equity. Once the equity from house sale is below the limit to get UC, work out how much UC, rent assistance, child benefit and child support you'd get from stbxh and what the shortfall is, that's the minimum you need to earn. Child support will vary depending on nights spent with each parent. I'd see what you get on 2 and 3 nights a week DC with dad. Just for budgetary purposes. Checked entitled to website.

Were I am you can separate under one roof and claim benefits. That might be an option for you while divorce and financial settlement are dealt with. And give you a bit of breathing space to find a rental and a job. You need to be practical now. There's no loophole to make him pay for the house so you can stay there. Work out what your real options are.