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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

Jury needed, advice welcome, and anything else.

33 replies

Evilwater · 05/02/2014 11:23

Hi all,
I've left my ex who was EA and finaically controlling, the paper work for my 'share' of the house has come through, I'm now living in private rented place. When we got the house we took out a contract and ex said to me I'd get 30% it turns out, that it's only 27%.

Anyway my 'share' is around 18k.
I'm a part time working single mum, with child tax credit, working tax credit, and on housing benefit. So my circumstances for a mortgage isn't great. So what do I do?

Keep it for school holidays, paying for uni
Try and get a mortgage?
Stay where I am?
Try and get social housing?

Ex made all the big money choices, and I have no idea what to do.

OP posts:

FloweryFeatureWall · 05/02/2014 12:18

If I've understood this correctly, you will get a lump sum of 18k? That will affect your benefits so that needs to be taken into account with your decision.

Lonecatwithkitten · 05/02/2014 13:29

Do you have any debts? How tight is your current budget?

Divinity · 05/02/2014 15:19

You need some legal/financial advice Evil before you do anything. As Flowery said a lump sum will effect your benefits so you will probably have to live off that £18k as HMRC will take this into account. Legal advice is best.

Monetbyhimself · 05/02/2014 15:24

A lump sum like that will significantly affect your tax credits.

Original poster

Evilwater · 05/02/2014 19:36

I've trotted up my expenses they come to £1,230 per month.
My part time income per month is £930,
Child tax credit is £172
Working tax is £96.5

So it leaves me with £32 per month for me. No debuts.

I was thinking about putting the money into my sons account. Would it count then?

OP posts:

Monetbyhimself · 05/02/2014 19:47

Child benefit ?

Original poster

Evilwater · 05/02/2014 20:03

Oh forgot that, I get that too.
So anyone got Any experiences, or wisdom?

OP posts:

itwillgetbettersoon · 05/02/2014 20:06

I think even putting it into your sons account will not hide it.

Why did you only get 27% was that legally agreed or did your ex decide - just seems very low when the split starts at 50%.

MrsIgglePiggle · 05/02/2014 20:08

You need to buy something with that money, or risk losing all your benefits. I suggest a garage or a lock up.

Original poster

Evilwater · 05/02/2014 20:20

We agreed to 70-30. he brought the deposit, which was very large and paid all the fees. He was pretty strict about that, but I didn't know about 27%. But as I said to the lawyer, I was in love, I trusted him, why would I check it?

Could I give the money to my parents to look after it?

OP posts:

paperlantern · 05/02/2014 20:26

agree with seeing a financial adviser.

if you have to spend it may I suggest a decent new car that won't need to much maintenance for a while.

aslong as you have some earned income you may still be able to get a mortgage as some mortgage companies take benefits and maintenance into account

Original poster

Evilwater · 05/02/2014 20:38

I'll get the number of the financial advisor.
But how do I make this choice? How do I know it's the right one?

OP posts:

CaisleanDraiochta · 05/02/2014 20:42

Proceeds from a house sale can be ignored for benefit purposes for a set time (6 months?) if you say you are planning to use them for buying a new property. Only the interest you earn on savings has to be declared for tax credits, as income.

Be very careful if you try to spend the money away in order to still claim benefits. Look up the 'deprivation of capital' rules before you make any decisions.

paperlantern · 05/02/2014 21:03

ask for recommendations. if you're on Facebook that is often a good start. talk to three, gives you a feel for what's possible and not and work with the one you like best.

Haven't read the rules. but actually a car is a really sensible buy. Rarely as a single mum on benefits will you have the money to buy a decent car yet the repair costs of an older car can be crippling. a decent car now could last you out the next 10 years

Original poster

Evilwater · 05/02/2014 21:35

I bought a new car before my son arrived, as my 3 door was tiny.

OP posts:

paperlantern · 05/02/2014 21:54

preaching to the choir then!

cestlavielife · 06/02/2014 13:55

was the house sold or is he buying you out?
what provision is he making for the Dc ?
you need a lawyer - you couldl be entitled to more under childrens act interms of providing a home for the dc . but dependson what that amount might be and whether it sets you up to buy some place or not.

Original poster

Evilwater · 06/02/2014 19:45

He is buying me out.
He is the type of person that when he dies he would have all his money stuffed in his pockets. He Even bullied me into changing my will so that all my money would go to him, not our son.

He is paying maintance of £250 a month, so that pays the nursey fees. The lawer said I could get the house, but it has too many memories and he won't spend any money on it. It's dropped 20-40k in value. The back garden is a dump, filled with his stock for his business.

I've phoned the financial adviser this afternoon.

OP posts:

Diagonally · 09/02/2014 18:17

With that amount I think you will lose your HB but not your tax credits.

If you earn any interest on it then that will be taken into account for tax credits.

Could you look into shared ownership housing?

TwittyMcTwitterson · 09/02/2014 18:43

That should be enough for a deposit in a house/flat but then obv if you own rather than rent, you will not be able to claim any housing benefit. We put 18k down on our house and only DPs name is on mortgage and his wage taken into account as my credit rating is abysmal.

That could also set your DS up if anything were to happen to u, god forbid.

Depending on where you live and house prices, I'd advise that.

Original poster

Evilwater · 09/02/2014 22:08

Thanks for all your advice. I'm glad I won't lose my child tax credit and tax credits, They really are a life line. I will let you know about what happens next.

A deposit in the house would be the best thing, but I'm not holding out for it, everyone says it's tough to get one. I'll look into shared schemes.
Evil

OP posts:

Original poster

Evilwater · 10/02/2014 21:06

Just had an email from my finance guy, the good news is I can get a morgate but the bad is the only thing I could afford is a hoilday home. :(

Does anything now about the buy to let schemes?

OP posts:

TwittyMcTwitterson · 10/02/2014 21:26

How much is this holiday home???

Do you mean shared ownership? I don't know much. I'd say estate agents know and many are advertised on their websites. Which part of the UK are you in? Just to get an idea of house prices there.

In the slightly less desirable areas where we are, you can get a 3bed house for around 85-95k and some flats for 55-65k. We are Northamptonshire. Up north is cheaper still.

Original poster

Evilwater · 10/02/2014 21:49

I live in the SW, the hoilday homes start from 85k and go upwards, the 2 bed homes are priced about 130k. I'm 30k short.

I don't know much about shared ownership, the affordable housing is very rare here.

OP posts:

TwittyMcTwitterson · 10/02/2014 22:27

Hmmmm... Would you consider relocating?

Shared ownership isn't uncommon nowadays. I'd search around, google etc.

Did your finance guys have anything to advise re spending it so as not to affect anything? What were the suggestions for putting it in children's savings account?

You can always give it to me, I don't mind

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