Anyone know anything about housing benefit?

[grounddown]

This is my situation

Single mom of 2, renting privately.

I own a property with my ex that is in negative equity by about £15k - we cant afford to cut our losses and sell it. He doesnt want to live in it and its too small for me and the kids so we rent it out and make a small profit of £40 each per month after estate agents fees. Its cost me £550 this year alone on boiler repairs and gas certificate and work so thats pretty much gone. Tax credits are aware of this income.

I work 16 hours per week and claim child tax credits and working tax credits.

My mortgage is due to go up in November by £250ish per month as the fixed rate ends and with rate rises in the air im shitting myself. My friend asked me how much housing benefit i get but ive never claimed it thinking i would be ineligible as ive got a property. She reckons that as theres no equity in it and im actually paying towards it each month instead of getting an income (as of novermber) i can claim.

Does anyone know?

AFAIK it is really hard to get HB with a mortgage - I did try once but you had to wait 6 months or something. why not phone the council and ask?

Oh dear.
Good idea - Ive emailed them, im supposed to be working so cant ring them :)

definitely worth finding out about so good luck

Housing benefit is only for people who rent, if you contact DWP they may be able to help you with your mortgage but it is only after a while.

Fluffy the op does rent.

I doubt you'll be eligible. It's for people who don't own property. Yes, you may be in negative now, but in theory it is equity and could easily go back up in value. For benefits etc, they will ask about any assets you have. Your property is one.

you'd be better off renegotiating a mortgage deal. You don't have to let your current one finish and just go up by £250! Mine finished and I moved straight onto a new one, about the same.

Need it was a staff mortgage on a ridiculously low interest rate (i was a mortgage advisor before i got made redundant) and that comes to an end, i revert to SVR and they dont have any other deals worth paying the £599 arrangement fee for.

sell up and cut your losses.

I would love to sell up but ex says he will not get a loan (he is a stubborn arse of a man) and i couldnt afford a £15k loan on my own.
We werent married so cant make him take on half.

but you can't affort to default on the mortgage either...

I don't know if it works differently in different areas but I jointly own a house with my exH and am still on the deeds and mortgage even though we are divorced. Keep meaning to get around to sorting it out but never have.

I rent with my DC and get full housing benefit. They are aware of the joint ownership but know that I don't live in the house, or pay towards it, or get income from it.

I'm doubtful tbh. How old are your dc ? If you can't afford the rate rise you could choose to:
Sell and repay the negative equity over time
Move in yourself and be a bit tight for space
Continue to rent it out but put the rent up (although unlikely to get +£250 pcm)
Increase your hours to increase income

Lizs makes a good point how can any house be too small for three people? Even a one bed flat is doable at a push. I think you should live there yourself.

I wouldnt live there again, the area is rubbish and ive just signed a 6 month contract.
I cant put the rent up, the tenant is a single mother on benefits and i havent the heart, its the same as the other similar properties on the street that are rented.

Ive emailed exp tonight and informed him of all this - he is a head in the sand type person - and outlined all the financials. I reckon that if he moved there he would save about £500 a month (he lives in a large detached house with a garden which he has always said he would never move from as he needs the space for the kids but he only has them for 24 hours a week so he doesnt need that) and with that money he could pay me maintenance (which he doesnt do now because he says his money is taken up on rent and bills ) and learn to drive. He could live there and put it on the market to sell it. I would happily take on half of the debt but not all of it.

I need to sell it, i want out - i have decided.

Sorry but just because the area is rubbish doesn't mean you can't live there. You lived there before , why not now when you are financially at risk? I fear you too are a head in the sand person . It is not reasonable to expect your ex to do what you are not willing to. It doesn't have to be forever, just while you sell . However if you have signed your tenant to another 6 months then you can't sell yet anyway, or is that 6 months for where you live ? Is the lender aware you are renting it out btw as that will also affect whatever rate/remortgage you can negotiate.

Im not going to live there with my kids because When i lived there the house next door got raided for drugs twice in 6 months and a woman was attacked in the alley 300 yards away. Along with a lot of anti social behaviour that the police seem to be failing to tackle despite repeated phonecalls from residents its not what i want for my kids so i moved away when i was pregnant with and my exp threatened to kill me and my family.
It is reasonable to ask my ex to live there, he owns half of it and is as responsible for it as i am, he doesnt pay maintenance and im a bit sick of being responsible for everything although he has just emailed me back with a load of abuse so i doubt this will be resolved.
I would never default on my mortgage, i am very aware of the implications of this.
Yes everything is above board and legal, i just wondered if i could claim housing benefit and now i have my answer - thanks

So you can't put the rent up because you don't have the heart, but you would make her homeless. It's not good enough for you to live in because you have children, but you were happy to rent it out to a single mother. Righto.

I didnt target a single mother - i use an estate agent!! I didnt know she was a single mother until the boiler broke and they asked me to get it fixed the same day because of her circumstances - christ!!

If i decide to move there she will be given 2 months written notice by the estate agent who will probably help her find a new house - there is no way i can see how you think that is making her homeless??

Although i got some amazing support from Mumsnet when my exp was being abusive and some incredible women gave me the courage to leave i always regret asking money questions on here and wont again.

Thanks for the helpful posts.

People have given you helpful suggestions which you have rejected because your tenant is a single mother and you don't want to live there because it isn't safe for a place to bring up children.

Thats my opinion. She also has her opinion and she obviously thinks it is safe, she isnt trapped shes on a rolling month to month contract and can move out at any time. Its not the cheapest house to rent so she has obviously made an informed decision to live there.

Ill ring CAB.

I know someone in a similar situation who's getting housing benefit.

Her ex is refusing to sell the family house and she's going to get legal advice about this. In the mean time she's renting and getting hb, but has been told they'll review it after six months.

Though she's not renting the old family home out, her ex is living there.

Thanks Galaxy, thats where i was confused, because its tenanted and therefore seen as an asset is suppose. Ill ring the council in the morning.

Its worth asking.

Contact your local Housing Benefit office, make a claim, be honest and be prepared to provide loads of proof with regards to the property you own, the mortgage on it, it's market value and the rent you get. You may qualify for benefit for a period of time and then it will be reviewed. HTH.