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Lone parents

Use our Single Parent forum to speak to other parents raising a child alone.

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Original poster

Benefits if I own a house I can't live in?

18 replies

LoodleDoodle · 05/03/2011 08:25

Hi all, looking for sone financial/practical advice here.

B/g is that I live with my partner in his home with our 14 month old daughter. I moved here 4 years ago from my own flat which is 30 miles away, changed jobs, took on 2 SD's half time in the FMH. I've never gone on the mortgage as I have rented my own flat out.

I have recently taken on new tenants, who have a 12 month no break clause. I dont make any money on the flat but the rent pays the mortgage.

I'm now in a situ where not so darling partner has given up on our relationship. Long story but deep down I think he's met someone and is just looking to get rid of me. Long painful convo last night, upshot is no immediate action but he's not sure hes willing to work at it.

I work 4 days a week here with nursery and DP doing a fair bit of childcare. I've got sone grace to sort stuff out, but feel like I ought to have a plan at the ready. DD will live with me, no question, but does anyone know if I'll get any help if I rent a flat while I am
Letting out another, whether I would be able to work less hours and get more help, or if I'm basically screwed? I feel sick and scared, and so unsure of what to do.

OP posts:

OldLadyKnowsNothing · 05/03/2011 16:40

Try and speak to CAB on Monday. Or maybe Shelter?

Original poster

LoodleDoodle · 05/03/2011 18:20

I've had a quick look on their website but this seems a very specific thing. I will, and I thought maybe the benefits people at the jobcentre. I just feel so adrift and didn't sleep a wink for worrying. I don't think he would actually throw us out, but I just need to have a plan and know at least that we can afford somewhere to live.

Panic panic panic...

OP posts:

DillyDaydreaming · 05/03/2011 18:23

Hang on - does he not have a duty to put a roof over his daughter's head? Legal advice would be useful - CAB might be able to provide this.

evolucy7 · 05/03/2011 18:30

You can be on the mortgage on a property but live elsewhere and claim HB. However I am not sure of all the circumstances that this possible and for how long. I still owned a house with ex for 6 months while living in a rented house and claiming HB, but the house was on the market. The council are the best people to answer the HB question. It might be ok until the end of your tenants' tenacy, but I'd be surprised if it was after that. If you then didn't want to live in the flat because of where it is, if you then had more £16k from selling it you wouldn't get any HB.

Have you been contributing to the mortgage for DPs house?

You would be fine as a single parent, IS, tax credits, working tax credits too if you stay working more than 16 hours a week (to pay for childcare for DD also).

MilkToffee · 05/03/2011 18:45

You might have some problems relating to capital if you wanted to claim income-related benefits (which includes IS and HB). You need to have less than £16k in capital, which includes savings and any properties you don't live in. I think they could count the rental from your property as income, regardless of the fact that it only just pays your mortgage.

If you are married, you could have a claim to your ex's house regardless of whether your name is on the mortgage. There are cases as well where the mother has been able to stay in the family home until the child has left school, but I don't know if that only applies to married couples.

You really need more specialist advice as it's quite a complicated area.

evolucy7 · 05/03/2011 18:51

MilkToffee...it does not always include properties that you don't live, I have direct experience of this, there is a specific form from the council for information about this, it is certainly not a blanket no.

However I am not sure about counting the rental as income, if a tenacy agreement is in place the OP has no choice but to continue doesn't she, and if that means until the 12 months is up then she could not live there, I would have thought that she may well still be entitled to HB. The rental is not income for her to use to rent somewhere else. But I am not sure, the council would answer that.

MilkToffee · 05/03/2011 19:02

Your situation was different though evolucy, your house was on the market and that's an exception that's written into the HB rules.

I'm not sure the OP's situation would be allowed for in the same way. If it was, it could be possible for any landlord to rent a property and claim benefits otherwise. Not saying that's what the OP is doing, but from the council's pov she might as well be.

evolucy7 · 05/03/2011 19:11

But if she cannot live in the property if she unable to just cancel the tenancy agreement she needs somewhere else to live. If the rental income pays the mortgage it is not income that she can use to rent somewhere else.

OP has not just decided to rent her property and then claim benefits, her circumstances have changed, and OP would now be finding herself as a lone parent. I assume that OP has rented her flat for 4 years, so the council can quite clearly see that she has not just suddenly done this. I can't imagine that she would be able enter a new tenancy agreement but may be able to claim until the end of the current one.

emskaboo · 05/03/2011 19:38

I had a client in this position and HB would allow a period of time if the property was on the market, but would take the rent into account as income which effectively stuffs you, sorry. It might be worth having a chat with HB though as things can change, but tbh I think your best bet is to look at your tenancy agreement with your tenants and see if there is a break clause that would allow you to terminate early. If it is a standard agreement there is often a clause which allows you to terminate at six months.

This would mean you could serve notice at four months to end on the last day of the six months (has to end on the day before the rent is due for month 7).

evolucy7 · 05/03/2011 19:40

emskaboo....so if isn't possible to end tenancy agreement sooner, what would you be expected to do, do you know?

Original poster

LoodleDoodle · 05/03/2011 20:33

Unforch, I had no idea this was coming, and there is a no break clause, for 12 months, they've only just moved in. As it happens, it's been on the Market for sale for months and still is, but for investment buyers only, which i had to do to find tenants. Otherwise I'd have had it empty and defaulted on the mortgage.

I have been contributing to the mortgage but unofficially, and there is no spare cash from him. The CSA are already on it for his two DDs, so I don't suppose I'll see much from him.

I do 30 hours a week, and at the mo only get a couple of quid a week in tax credits, I've no idea whether this will change. I earn a good wage, but I don't see how it will be enough to cover a home.

Scared at the idea that the rent will be considered income, as it certainly isn't, it doesn't even cover itself.

Thanks for the responses guys. I'm so all over the place, end if relationship, losing SDs, home etc, the thought that I may lose everything and end up in some awful bedsit is just making me feel so sick.

OP posts:

evolucy7 · 05/03/2011 21:02

You will most probably get more tax credits as a lone parent.

If the flat is on the market that could be very helpful for claiming HB.

I would honestly believe that you would be ok financially, I was petrified when my ex left, I had just resigned from a well paid job after second maternity leave as we had decided that I would stay at home for a while the children were about to turn 1 and 2 years. But actually it has turned out very well, I have enough money, I am careful with what I spend, but we live in a nice house, and I can afford to pay for the children to have swimming, ballet and tap lessons. If you can get the HB sorted I don't see why you wouldn't have enough money for a sensible lifestyle.

Original poster

LoodleDoodle · 05/03/2011 21:28

That's really reassuring. I know people manage, I guess it's all the unknown plus the hurt too. I never expected any of this. I know no one ever does, but still.

What's not helping is the limbo. We haven't officially split up, but he has said it isn't working and that he doesn't know if he wants it to work. If there was no DD, I'd not put up with this, but I'm trying to take it all at face value for her sake. For my own sanity I have to have a plan inplace. Sounds like I might get temporary help. Will talk to lone parent adviser this week and take it from there I guess

OP posts:

evolucy7 · 05/03/2011 21:34

I'd call the council about the HB they deal with it rather than Jobcentre.

I have to say that my ex left the first time when DD1 was 3 months old and I think really he only came back when we found out that I was pregnant with DD2, it still didn't work and he left again! Perhaps if you feel that you wouldn't put up with it if you did not have a child it might be best not to when you do, maybe or maybe not. When my ex left I felt at the time that I would do anything to be back together as a 'proper' family as I saw it, but 3 years later I am so glad he left actually

emskaboo · 06/03/2011 09:53

Sorry not to come back last night, bath bed whirligig took over! I would advise a call to HB to discuss what they'd do regarding capital/income from the property and a call to tax credits or going on the directgov website to work out your potential tax credits.

Sorry not to be able to be more positive

Original poster

LoodleDoodle · 06/03/2011 11:57

Not at all and thanks for coming back at all. In some ways I prefer to be less positive just so I dont get my hopes up anyway.

Things still v bleak this morning, and I can't find any info re HB on my local councils site. Will add them to tomorrows call list. Gulp.

Evolucy, I know, and tbh things have gotten to the point where my pride is kicking back in. I don't want to live like this for the next however many years. I just can't help hoping I'll wake up and this won't have happened. On the other hand, the thought of no more moody man, being an unpaid slave to the SDs, no more interfering MIL, ex wife, the list is endless...well it's a rather liberating thought. Frighteningly. Think whatever happens re cash, we will be happier. I hope.

Thanks all.

OP posts:

Original poster

LoodleDoodle · 09/03/2011 18:44

Update, in case anyone sees the thread with a similar question.

My local council say the for the duration of the tenancy I will be entitled to HB, minus any income each month from the rental that is profit. As none is, I will get a tiny bit of help depending on tax credits, which should go up enough to help me cover the rent. Phew.

OP posts:

evolucy7 · 09/03/2011 19:36

Well done While we might sometimes assume the worst, from my experience when my ex left and yours too Loodle, there is help for those who genuinely find themselves as lone parents suddenly with few other options but to ask for financial help.

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