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?

Move to a cheaper area where you can buy a flat.

I’d look for a 2 bed, if one of the rooms is large then it could be split or you could sleep downstairs. UC disregard house proceeds for 6 months after a divorce to allow you time to purchase somewhere else. If you haven’t managed to find somewhere by then then your UC claim would close as you’d have more than 16k in savings. Shared ownership could also be an option if there’s any near you, UC would help toward the rent part.

This is not the case.

if your arrangement is amicable - agreed between the two of you - the judge will not get involved in details.

Is relocation an option?

two bed terraces often have a loft or attic room with a skylight-that way you actually get a 3 bed house for the price of a 2 bed!

I would look at buying a 2 bed as long term it will be easier for you to manage. Just look for decent rooms. The girl would have to share a bedroom with you and when your son stays at his dad's he would share with dad.

Have a word with the housing department at your local authority. Find out what kind of schemes you may be eligible for

OP, where (roughly) do you live? Because there are three bedroom houses on RM for under £150k in areas like Doncaster, Scunthorpe, Burnley, Darlington. May not be in the best areas of course, and would you have money for repairs and maintenance if you bought? But if you give a rough region we can probably help you find somewhere. Your kids would probably have to change schools but if they are primary age that is not a total disaster.

Or yes, a two bedroom flat would be absolutely fine too.

If you live in a "cheap housing area", you can buy a 2 bed flat each, with the parent sleeping on a bed in the living room.

Can you look into shared ownership homes?

Even if things ever got as far as court, Shelter classify a reception room as a bedroom when looking at room calculations. The only rooms they don’t count are kitchen and bathroom (obviously). You may be able to get one of those beds which flip up against a wall or have a carpenter build you one). That way, when it’s packed away, it’s not resembling a bedroom at all. I wouldn’t recommend a sofa bed though as they are really bad for your back it using regularly.

Best of luck x

Why don’t you move somewhere where £150k will buy you a three bed?
Neither of you have jobs to tie you to an area so move?
If Kids want to stay with you why don’t you get £200k, buy a 3 bed, exh gets 100k buys a flat. When kids leave home you sell and give him the £50k (or 25% of house) and then it’s all done nd dusted.
You don’t both need a three bed.Surely he wants what’s best for his kids over what he gets money wise?

Friend went to a housing association. Her property was part bought, part rented. It's worked very well for her.

@LunaDeBallona With teenagers, it may depend where they are in their education. If a child is in an exam year, for example, it’s not good to move them. Or when they’re happy and settled in a school- I wouldn’t move DS (17) right now unless I absolutely had to, I’d rather downsize tbh.

If the kids are both staying with you and will be with you for ten more years can't your husband just move out and rent somewhere alone? You stay in the house with the kids and agree to sell and split the money in ten years?

OP says oldest child won’t be leaving for at least ten years, so sounds like they are both primary-aged.

Also, I know this shouldn't be a consideration but if you stayed in the house, agreeing to sell in ten years, and your husband rented, you could both claim full benefits. Neither of you would be expected to run down your money paying rent out of the house sale money.

@Tigerbalmshark She says they’re teenagers in the first post. I thought perhaps one of them could be close to exams. Moving with teens can be challenging!

Currently due to start divorce process. Both still living together, have 2 teens..

I agree with @harriethoyle - get a 2 bed flat and put a sofa bed in the living space.

You might find the teens agree they don’t have to both stay with you on the same - so maybe on weekend 1 both of them stay with you, but the following M-F dc1 is with you and dc2 is with dad. Then next weekend both kids are with dad and the following M-F dc2 is with you and dc1 is with dad. That would put a lot less pressure on bedrooms, you’d only need your sofa bed two or three nights per fortnight.

Is there a future in which either of you could work? Being on benefits for the rest of your lives sounds grim. Thee must be some way one of you can find part time work?

You need to provide adequate accomodation it does not require three bed house. 2 bed use lounge . You sell split proceeds buy what you can each afford. Split a big room into two etc

Look at shared ownership so that you own a percentage and pay rent on a small amount.

or buy a small two bed flat, you take the smaller room and split the larger room in two. Get a builder to build a wall splitting the biggest room and window.

I agree with others that you should aim for more than a 50/50 split as you will need to accommodate two children for at least 10 years, whereas he only needs to accommodate himself with a spare room if/when the children visit.

Also, you may still be eligible for a mortgage even though you aren’t employed. Is your credit history ok? Some lenders will calculate affordability based off your benefits. It’s worth speaking to a broker. Many are free as they are paid a commission by the lender.

Unfortunately the new renters rights bill , has made that illegal

I think a 2 bedroom would be your best option.