Universal credit and buy to let mortgage

[tinatea]

I'm in a complicated home/ life situation. I recently lost my job of 10 years due to Covid.
I have a small flat with a buy to let Mortage which I have always rented out and is still rented. The monthly rent from this flat goes to pay off the mortgage and I'm left with a very small income at the end of each month.
I had rented out my flat as I moved in with my then partner who has a mortgage in his name. Our relationship broke down and due to me not earning anything he says I can stay in the spare room until I'm back on my feet. We also have a daughter which is the reason he is being reasonable and letting me stay.
Can I still claim universal credit? Do I need to declare this flat as 'earnings' even though I'm not actually earning anything much out of it? Not sure how to handle the rent situation either as due to my ex partner letting me stay in the spare room I don't have any rent to pay. Will this be seen as 'odd'?
Will it be seen as odd that I'm living with my ex partner? Is this a reason for me to be refused universal credit? My ex partner has a very well paid salary which I obviously don't get access to anymore!
I just want to get out and get my own place but not sure I can afford it with the rents in London.

Yes you need to declare income from BTL. You should be able to claim uc as single with child. If your living in ex partners house you may be questioned about this (to make sure it is a single not joint claim).

Thanks for your reply.
Do you know if my UC claim will be much less because of the BTL mortgage?
I actually need someone to help me access some of these Benefits as I've never claimed anything in my life ( don't know where to start? but have always paid taxes since I was 15. For example I read that I may be entitled to working tax credits, child benefit etc..
Is there such a service which can help people like me navigate the system? It just seems like I'm facing barriers before I've even started.

It's all online, just go on and fill in all the answers. Very few people know how to claim until they need to.

You need to declare capital as well as income:

Yes you declare the capital as well as the income. I have a btl and they take that into account. It's a bit confusing on the application so maybe call them and see. Could you move into your BTL if you give tenant notice?

If there is more than £16,000 equity in your properties your not entitled to UC. You need to give your tenants notice and move back or sell the property.

When you think about it it makes sense, why should tax payer fund your rent when you own a property?

Somewhere like citizens advice would be able to help you, but I think there will be an expectation you move back into the property you own rather than expect to get help renting a second property to live in.

Go on Facebook find a page called universal credit essentials

@IndecentFeminist

You need to declare capital as well as income:

Thank you very helpful!

The Facebook group is good, join it and ask there. You can claim child benefit now though. Is your ex paying any CMS ? Are you looking fir somewhere to rent or looking to move tenants on ?

Is your BTL flat not in a location you want to live? Because going to live in a property you already own is the obvious solution.

Living with the ex won't stop you claiming UC. You need to apply and ask them for advice.

@NoSquirrels

Is your BTL flat not in a location you want to live? Because going to live in a property you already own is the obvious solution.

How would OP pay the mortgage?

Besides, there are tenants in there - she would need to give them at least two months notice and it might be longer because of covid.

You can certainly claim UC if you own a property, even outright. However, owning a property you let out is a bit more murky. I hope you get it sorted, OP.

You can definitely claim UC if you are separated but still living together. You just have to be sure that are indeed ‘living’ separately.

Citizens Advice have a dedicated UC helpline who were utterly brilliant when I contacted them last year. They talked me through the whole process and were able to give me the exact amount I’d be getting.
www.citizensadvice.org.uk/benefits/universal-credit/claiming/helptoclaim/

@daffodilsandprimroses

Besides, there are tenants in there - she would need to give them at least two months notice and it might be longer because of covid.

You can certainly claim UC if you own a property, even outright. However, owning a property you let out is a bit more murky. I hope you get it sorted, OP.

It is longer, it's 6 months.

And yes, you can claim child benefit and they will backdate it to when you and your partner split. I didn’t realise this so got 9 months backdated!

Thank you daisy

Go on turn2us as they have a benefits calculator showing what you can claim. You won't be able to get tax credits, it will be a child element of universal credit. They will remove some of the UC for what you get in rent. You can claim child benefit. If you can't get UC you can get new style JSA. The issue with the JSA is that you won't get the child element.

You need to declare capital (which will be the market value of the flat, less 10%, less the total amount of mortgage secured on it), and income as well.

If 90% of the value of the flat, less the mortgage, is worth more than 16k then you will not qualify for UC.

If it is worth more than 6k but less than 16k, your UC will be reduced by (iirc) £4 for every £250 in capital, and then reduced again for the income you report.

UC will ask questions about living with your ex in the same property, but that may well work out fine.

The only way to find out for certain is to make the claim.

Sounds to me as if you need to give your tenant notice and move into the flat yourself.

Are you liny to get another job shortly? Any job? Difficult but by far the better option for everyone.

You need to declare it and unfortunately it will affect what you can claim.

I have been in a similar situation in the past, living on a lower monthly income than is considered acceptable by the governments own standards and without the benefits that go along with claiming benefits, like FSMs, PP for my children and free prescriptions. The system is shit.

www.entitledto.co.uk/

You can enter your info here to get an idea of entitlement, use the info from PP working out capital in your BTL property.

Honestly, in your situation I'd try to get any job. Because you aren't paying rent, you only need to earn an amount to keep you going and save for a rent deposit. You'll put a lot of time and energy into accessing benefits, with little reward.

@Weatherwarnings

If there is more than £16,000 equity in your properties your not entitled to UC. You need to give your tenants notice and move back or sell the property.

When you think about it it makes sense, why should tax payer fund your rent when you own a property?

You make it sound easier than that would actually be!