Divorce, house sale, both on benefits , not enough to buy new property

[Helpmeunderstand92724]

I'm posting this on the divorce forum too . Currently due to start divorce process. Both still living together, have 2 teens..
Background, both worked full time, own a home outright with no mortgage currently worth 300k.
Since buying the house , we have both had serious changes in circumstances.
My husband has been off sick from work for 4 years due to ill health (mental health). He receives pip and we have been struggling living off my wage.
Myself , I have also now just finished workingdue to a chronic disability. I am claiming contribution new style ESA in the support group and once divorced will also need to claim universal credit. I have no savings, no pension.
Once the property is split 50/50 we will get 150k each minus fees etc. This is not enough to buy a 3 bed property each .
Neither of us would qualify for a mortgage . Renting , would have to be paid out of the house sale money but wouldn't last forever. Would a guaranter be required as neither of us have anyone that could do that.
I know we are very lucky to own a property outright but neither of us have an income /financial stability for the future and unable to work. Neither of us could buy the other one out . Any suggestions?

How old are the teens? Same sex or one of each?
I'm sorry, this is hard I know, but there will be a way.

The only option really is that you both take your share of the equity and use it to pay rent & live off.

Once the money runs out you would then potentially be entitled to UC depending on circumstances. Whether you need a guarantor depends on the landlord, lots do require this but if you’re walking away with £150k you could try to use evidence of that as insurance instead potentially.

I mean you could nest if you are VERY reasonable and can manage it (I wouldn't). You share a cheap one-bed flat or room in a house (or a kind family member's spare room). And the kids stay where they are with one week on, one week off.

It only works as a very temporary (you said teens) solution before proper divorce.

Do you really need 3 beds? The reason I ask this is that if you rent then you will still have capital which makes you ineligible for means tested benefits. If you can possibly buy a property then there will be a capital disregard which will protect your income. Otherwise you will be expected to fund your life from the capital until such time as you reach the threshold for means tested benefits, currently £16k

Two bed flat and use the lounge as a third bedroom until first child leaves home.

This.

You don't necessarily need a three bed house. You could make a 2 bed work.

If they are the same sex then bunk beds in the 2nd bedroom and if not, you could sleep in the lounge for the 50% they are with you.

Yes, a two bed with you in the lounge on the sofa bed would be my suggestion. I would definitely prioritise buying a property, even a small one, so you’ve always got somewhere to live. As your kids are teens it hopefully won’t be too many years till they are living independently anyway.

DH’s mother had to do this after she left his dad - they all survived.

Any shared ownership schemes in your area?

How old are the teens? Could you look at flats? Or 2 bed and kids swap about?
agree with pp re 3 bed and sofa bed in lounge for you.
i don’t think a mortgage would be possible if only income now is benefits?

In similar circumstances following a break up I was able to avoid needing a guarantor by paying the rent up front for the initial 6-month contract period.

I think in those circumstances I’d look for two bed flats that are relatively close. Most teenagers don’t want to go from house to house anyway but if they are close by they can come for dinner / hang out then go back to sleep.

I agree with PP’s that a 2-bed is the better option given your circumstances. It’ll be tight while both your teens are living at home, but far more affordable longterm. You don’t want to take on too much financially.

Can one child live with one of you and the other child the other? That way you would each only need a small two bed.

I would try and have:

-person 1 stays living in the house. Gets the biggest mortgage which they can afford and gives the money to the other person.
-person 2 gets a small 2 bed flat, using the money given as a deposit.
-Kids mainly live with parent 1 and do every other weekend with parent 2, sharing a room when there.
When the youngest child finishes 6th form, parent 1 either sells the house and gives parent 2 any remaining share. Or if circumstances have improved, they get a further loan and buy out parent 2.
Parent 2 should get some share of the equity increase over time if a lot of their money stays in the house

Any chance of a reconciliation?

I mean, yeah, quite honestly in your circumstances and assuming no abuse, I’d be tempted to stay together, even if in name only, until the kids leave home. Then you have a lot more housing options open to you.

If neither of you are able to work you can move to a part of the country where you can buy something. You don’t need to live where you are now.

I know it’s not ideal to disrupt teens education but shit happens, plenty have to. Or you delay the divorce until they are older. It’s all choices.

I wanted to say that as well! No chance of getting over what ever drove you apart?

How are either of them going to get a mortgage? No-one will lend to the unemployed.

How old are the DC and what sex?

If he's beating the hell out of you or it's utter hell living with him ,I understand
But ,in all honesty I wouldn't divorce in your situation.
When one the DC leaves home you can get your own room each .
Your both financially better of staying together at the moment and the DC need a home ,they will have exams soon .
Granted you have only given us limited information,so my reply can only be based on that .. apologies if there is DV involved

Move further north to get cheaper housing?

Can you split the house you own into a one bed flat and a larger flat, then one of you ‘nest’?

Is there a chance that either of you could restart work, even part time?

Can you relocate to a cheaper area?

I don’t think landlords are allowed to do this anymore. It’s part of the government’s genius move to make renting better for tenants, except all it does is make things harder for people in the OPs position because it will significantly limit her rental options.

We have one boy one girl . Will be at least 10 years until either leave home