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Original poster

Can I continue to claim Lone Parent tax credits on a joint mortgage??

18 replies

Squinx74 · 21/11/2013 07:58

Hello,
I'm separated, house sold, working full time and currently privately renting and claiming lone parent tax credits.
I have met a lovely new man who wants to help me get back on the property ladder by getting a joint mortgage together. He has his own house and would not be living at the house we buy together so can I still claim lone parent tax credits as it is only his name on the deeds and we can prove he still resides at his other address? Confused

OP posts:
dashoflime · 21/11/2013 08:10

Hi,
You can't claim any benefits as a single person if you are "living as husband and wife" with someone. The test for this is complex and (from memory) goes like this:

  1. Do you live together?
  2. Do you have shared financial commitments?
  3. Is the relationship stable?
  4. Are there children?
  5. Do you present yourself as a couple to others?

If you are not living together- the other questions shouldn't arise and you should be able to continue claiming as a single person.
However, you
will probably have a struggle on your hands to convince the revenue of this as the shared mortgage is such a strong indicator of shared financial arrangements that they may have difficulty believing that you are not living together as a couple.
The situation is very unusual

CogitoErgoSometimes · 21/11/2013 08:10

Leaving tax credits aside for a moment, be very careful about this arrangement. Joint ownership of property has many pitfalls and you need to have the terms of the deal properly drawn up by a lawyer. What happens if you fall out and either you or he wants to realise their share of the asset? Indeed, what is your share of the asset if its only his name on the deeds? Personally I would feel very uncomfortable if the roof over my and my DCs' heads was dependent on someone else's (conditional) generosity.

dashoflime · 21/11/2013 08:11

Why is it only his name on the deeds but you are jointly responsible for the mortgage btw? How does this help you get on the housing ladder?

dashoflime · 21/11/2013 08:12

Cogito Crosspost!

CogitoErgoSometimes · 21/11/2013 08:17

It's worth saying twice.

saragossa2010 · 21/11/2013 08:56

Sounds a total con perpetrated on you by the lovely new lover. You pay and he owns! See a solicitor.

LineRunner · 21/11/2013 09:08

What the others said above.

Have you known your new man for very long? This does sound like rather a grandiose gesture on his part, and if you haven't known him long it is really a well known 'red flag' I'm afraid. So please be very careful.

manzanillaplease · 21/11/2013 09:42

It sounds very strange as the others have said.

But anyway you two are likely to find it almost impossible to find a mortgage company that will give you a joint mortgage unless both names are on the deeds.

wellieboots · 21/11/2013 10:21

How can this be a joint mortgage if only his name on the deeds?why would you be named on a loan if it's not your house, I don't understand. And how does it help you get on the property ladder? If you're not named on the deeds, you're not on the property ladder because you have no ownership.

optimusic · 21/11/2013 10:32

Really. You want to buy a house with someone that you have no legal rights to? Are you mad?

What happens if you split up? You are kicked out on your arse, and lost everything you have sunk into a house with nothing to show for it.

Original poster
Squinx74 · 21/11/2013 12:47

Sorry I should clarify, Its not his name ONLY on the deeds, I meant it would only be his house in name, mine will also be on the deeds and mortgage etc but he would continue to live at his house while myself and my daughter would live in the recently purchased house.
He may stay a couple of nights but all he keeps at my current home is a toothbrush.
In a nutshell he's been living in his home, raising his kids alone for the last 20 years and likes it that way. He wants to provide some kind of security for me and my daughter though without actually living together.
Make any more sense?

OP posts:
CogitoErgoSometimes · 21/11/2013 13:33

Still get any joint ownership legally scrutinised and signed off. Romance can fizzle out. Property ownership and money are serious stuff. The crucial things to establish are who owns what, who can call time on the arrangement (e.g. if they want to sell up), how much equity you both have in the property, that kind of thing. As well as paying his share of the mortgage, is he going to be named on or paying towards utility bills, council tax, insurance or repairs? All of this kind of thing will determine whether the benefits people regard you as a couple or not.

FWIW I think it's still an odd arrangement that he sets you up with a house so that he can drop in from time to time but isn't so committed to you that he's prepared to leave his other home where presumably these 'kids' of his must be adults by now. He has his toothbrush at yours. Do you ever spend time at his place? Hmm

saragossa2010 · 21/11/2013 14:38

So you and he will jointly own the property and be liable for the mortgage and both be on the deeds. The main thing to decide is if you will own it as what is know tenants in common or joint tenants. If the latter if you die he gets it, not your child. If TiC then it goes to your heirs and also you could ecide the shares e.g. 50/50 or 60/40 or whatever you both regard as fair. You should also have a written agreement about what happens if your relationship breaks down and he wants it sold to get his share out. Worth making a will to if not already have one.

Original poster
Squinx74 · 21/11/2013 15:34

Thank you. Sorry for being vague earlier everyone. this would be all done properly with a solicitor etc and be above board. He's just a man who likes his autonomy but wants to take care of me now and in the future should we split up.

OP posts:
CogitoErgoSometimes · 21/11/2013 16:11

'Autonomy' is a strangely cold word to use in the context of a relationship. Be careful that physical distance doesn't translate to emotional distance and that the desire to 'take care of you' doesn't translate into 'ownership'.

rwepi · 21/11/2013 16:17

If he will be helping pay the mortgage then you have an extra income which will affect you tc claim

if he's not paying the mortgage then he gets a lovely big asset that you've paid for? Who's solicitor will you use -please make sure its not the same as his!

In any case i think you'd really struggle to convince anyone you don't live together. How often does/will he stay over?

HappyMummyOfOne · 21/11/2013 19:54

If you are in a relationship with a partner and have joint finances then tax credits will likely not believe you are single (quite correct as you are not).

Its also a myth that partners can stay a few nights and not affect benefits, they look at a lot of factors.

bimbabirba · 22/11/2013 22:04

So you want HMRC to believe that your boyfriend who owns 50% of the house and spends a few nights a week at yours is actually not living at that address.
It's never worth getting into this kind of dodgy arrangements just to carry on claiming a benefit, in your case tax credits.

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