Owning vs renting(maybe with HB). Help!!

[hubbabubbabubba]

Myself and my 2 dcs have been living in our own home for 6 years and originally were living there with dh (but we split 5 yrs ago.)
Dh's names is still on the mortgage and i cannot afford to buy him out or take his name off mortgage. i have always felt that our house has been a source of bad luck, and we have had problem after problem since moving there.

I am thinking of selling so i can rent somewhere and start a fresh, and hoping i can get Hbenefit. However, once i have sold house i would have around 40k left over, and i know inland revenue are going to want to know what i have done with that money before i can claim HB. We do have to pay off a loan that is secured on house for 20k, and i do owe my mother 20k, how can i prove this?

I cannot afford to rent without HB i dont think, 3 beds in my area are £1200 a month ish!
Or should we stay in our own house?

Help me!!

Is your ex husband still paying towards the mortgage?

I am no benefits expert but you cant claim HB with savings over £16k

If you have to pay the secured loan that would be easy to prove as you will have a paper trail.

Is your Ex entitled to a share of any equity?

I expect you will need a paper trail for the money your mum lent you and then you paying her back. Do you have bank statements to prove this?

No, he doesn't pay towards the mortgage any more.

The 20k loan that I need to pay off is ex-husband's so that is the only money he is entitled to.
Surely if i pay my mum £20k and show the bank statements for this, she can simply hold the money there until i want it, won't the inland rev be wise to this??

ps. i do not have paper proof of my mum lending me the 20k in the first case; it all came to me in dribs and drabs of cash over the years.

You can have savings of up to 16k so if you paid out £4k of your mums loan to her and paid off the secured loan then kept the rest in the bank you could still claim for and receive hb.

But with the cash in the bank you wouldn't it be able to claim it would have to be done immediately as you have to show 3 months bank statements when applying for hb and they do check them.

Yes, so if i gave the money to my mum immediately it could be done?

Um, I'm not an expert at this either but I don't understand what the Inland Revenue have to do with this? They issue tax credits but HB comes from your local Council doesn't it?

One thing that immediately springs to mind is that many private landlords (in this area anyway) do not accept tenants who are in receipt of Housing Benefit & they need to see payslips to prove you have enough income to pay the rent to start with (or rather the letting agent does). e.g. If you earn £1000 per month from employment you would not be able to rent a house costing £1200 per month in the hope (or even definite knowledge) that you would then get HB. I know that may well be regional though - here there are so few houses available for rent that landlords can pretty much ask for exactly what they want. I would check it out before you go ahead & sell your house though.