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Universal credit/housing benefit

9 replies

cookbook2000 · 27/07/2020 17:51

I wonder if anyone can help me. My husband and I are just about to separate and have a joint mortgage on a house which has a lot of equity in it. We have three children and youngest child is 10. I was thinking if my husband stays in the house and continues to pay the mortgage on his own then the children would be able to stay there when they see him, and I could move out and rent with my children (who would spend most of their time with me). But would I receive universal credit/housing benefit to help me if my name is still on a mortgage even though I'm not living there? I do work, but my wages wouldn't cover the rent and I'd need extra help. Would the equity in the house I'm moving out of be classed as my savings even though it's tied up in my house?
Any help would be really welcome 😁

OP posts:
MiniMum97 · 27/07/2020 18:07

Yes it would be treated as your money, unless your partner is the main carer of the children in which case it could be disregarded for as long as your partner and the children live there. You wouldn't then be able to have the children on your claim though.

It can be disregarded in other certain circumstances - for 6 months after leaving a relationship, then potentially a further 6 months (longer if reasonable) if you've put the property on the market.

If you then sell the home that money can be disregarded for a further 6 months (longer if reasonable) if you intend to use it to buy your own property.

Have you sought legal advice? If you are going to be the main carer why are you not staying in the property?

cookbook2000 · 27/07/2020 18:22

@minimum97 thank you so much for your advice. He won't go and I'm just so desperate that I thought I could go instead. I had a feeling that would be the case though.
Do you think that would be the case with any of the benefits ie the working tax element?
When I do the online calculator and put in the scenario that I stay in our house, it says that I'd be eligible for a UC payment. Do you think that would be the case if I rented - I'd still be entitled to something even though I've still got that equity?

And no, I haven't seemed legal advice yet, was just kind of seeing what my options were first.

Hope that makes sense!

OP posts:
MiniMum97 · 27/07/2020 18:36

If you have over £16k in capital (including a house you are NOT living in) then you won't be entitled to claim UC. Your own home is disregarded.

When you split from your husband your tax credits will end and you would have to claim UC.

Tax Credits only take into account income from capital, not the capital itself but you won't be able to stay on tax credits when you split up as this ends your joint claim and you can't make a new single claim for UC (unless you are in receipt of an Severe Disability Premium on an existing benefit but this would only apply on both you and your husband being disabled and already receiving an applicable benefit).

You can oddly stay living with your husband but having separated. You would need to be living separately in your home and not sharing things like meals or finances really. Things to demonstrate you have split. You could them claim UC as a single person (ending your tax credit claim).

Or if your income is low enough you may be able to claim UC jointly.

Please get a proper benefit check before doing this and consider that you will have to actively manage a UC claim which involves accessing your account every few days. You could a call Citizens Advice on 0800 144 8 444.

Claiming UC may also involved work related requirements such as job seeking, attending training courses, attending interviews at the job centre etc etc (obvs job centres are shut at the moment but thinking longer term). It's paid monthly and you have to wait 5 weeks for the first payment.

If you are self employed it's not great, and there can be issues if you are paid more frequently than monthly (although a recent court decision will hopefully mean this issue will not be one in due course). You also need to be careful what date you apply

Watch advance payments as they can put you into hardship for a year whilst deductions are made.

So be very careful before claiming and get some proper advice first.

Babyroobs · 27/07/2020 18:37

[quote cookbook2000]@minimum97 thank you so much for your advice. He won't go and I'm just so desperate that I thought I could go instead. I had a feeling that would be the case though.
Do you think that would be the case with any of the benefits ie the working tax element?
When I do the online calculator and put in the scenario that I stay in our house, it says that I'd be eligible for a UC payment. Do you think that would be the case if I rented - I'd still be entitled to something even though I've still got that equity?

And no, I haven't seemed legal advice yet, was just kind of seeing what my options were first.

Hope that makes sense! [/quote]
If you own half a house that is not being sold and the equity is over 16k you would not be eligible for Uc. If you are not staying in the house then they would expect either the house to be sold or for him to buy you out of the property. As pp says if this equity is then going to be put into another property it may be disregarded for a period of time. They will likely pay you a rent element whilst the house is being sold as long as reasonable measures are taken to sell it.

cookbook2000 · 27/07/2020 19:21

So. If I stay in the marital home, I'll get help, but if I leave it to rent, I'll get no help whatsoever? Is that correct?
I've never claimed any benefits before and I do work, but just part time because of the age of my youngest child.

OP posts:
Babyroobs · 27/07/2020 19:44

@cookbook2000

So. If I stay in the marital home, I'll get help, but if I leave it to rent, I'll get no help whatsoever? Is that correct? I've never claimed any benefits before and I do work, but just part time because of the age of my youngest child.
There is no help as such with paying a mortgage on UC, but on Uc if you don't claim the rent element ( which you wouldn't be if paying a mortgage ) you get a higher work allowance which means you can earn £512 a month before there are any deductions for earnings from your Uc amount.
Babyroobs · 27/07/2020 19:46

If you left the home to rent and the house is on the market to be sold then yes you would get help with rent until the house sold and you got paid your share of the equity. If that was not being put into another property and was over 16k then you would be expected to live off that money until it dropped below 16k. UC is a means tested benefit.

Babyroobs · 27/07/2020 19:54

If you stayed in the house, you would either need to get a court order saying you could stay in the house until the kids are out of education at which point the house gets sold and divided between you, or you need to take on the mortgage yourself and buy your ex out of it.

cookbook2000 · 28/07/2020 08:30

@babyroobs Thank you for your help. It's much appreciated. X

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