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?

People keep suggesting shared ownership. I was in a similar-ish situation and found that shared ownership properties were all in schemes for affordable homes that were only for sale to first time buyers.

Also, teens will have their own opinions on how often they want to stay with the non-resident parent, and this will probably change over time. Maybe you could stay in the house and make some financial contribution to your ex's rent, if he rents a small flat. As a single parent, you will be entitled to universal credit, and things like single person discount on your council tax (25% off).

The RRB isn’t lawful until March.

If you do end up renting, you could buy a smaller btl property so you stay on the housing ladder. Not much to recommend landlording right now but just a thought.

That’s silly advice - the capital in the property would forever prevent applying for means tested benefits.

renting anything when you're running down a small irreplaceable store of funds is really not your best bet. You might be able to rent something nicer than you can buy but you’ll be sentencing yourself to an insecure life when the money’s run out.

unless you’re expecting to come into another pot of money but from what you’ve said, the house equity is it.

How old are the kids?

Have you factored in stamp duty?

I note you haven’t directly commented on moving. There will be places in the country cheaper than your area which you say is cheap but isn’t that cheap because your house is worth £300k.

I don’t think a judge can insist on you providing a three bedroom house, if you don’t have the budget to do so how can a judge enforce it? Also as your children are teenagers they would be able to live with you if that’s what they want, I don’t think they would be forced to live at the other parents part or full time. Visit yes, but not have to stay if they didn’t want to. A two bed if you can afford it would be fine. It might be a struggle for a few years but ultimately it will give you security, much better than renting in the long term.

The government has projibited upfront payments as it is discriminatory.

You stay together until you are both able to return to work (if that is your intention?)

And again, until the changes come into law you CAN make lump sum payments upfront for rent

It wasn't advice, just something to think about. If the OP could afford a flat that would suit her once the children leave, she could then move into that. Might work out better in the long run, might not.

You cant afford for a judge to make the decision for you. If you find your self sitting in front of a judge you have probably spent 10s of thousands on legal fees unless you intend on both representing your selves.

You need to negotiate with your husband, if you cant agree and one of you starts instructing solictors its going to get very expensive.

Once you have worked out how much money you have then you can start looking at where you can live.

Shared ownership tends to be run by housing associations. They have rules around how much in savings you are allowed to have when you apply. Clearly some funds will be used up by a deposit and moving costs but would need to be checked. Might still qualify.

I don’t think this is true. My DD is looking at shared ownership now and there’s no restrictions like that at all.

Thank you for all your advice, lots to think about but doable. I have seen many many threads on the divorce forum that say the judge has said both children need their own bedroom and if staying with both parents, both parents need enough to be able to provide that for them.
Our specific situation- we live in the midlands in a cheap housing area. Our is is very large and in a nice area. It has high council tax and high bills. We were both doing well when we bought the house but circumstances have drastically changed.
Husband will never return to work , and neither will I as my xonditi5is degenerative.
I should recieve some kind of inheritance at some point in the future but my husband will not .
As it stands, I could not afford to stay in the house alone. My husband's pip pays towards the bills and I pay everything else. I will not be able to run the house myself. I would need to downsize drastically which I am happy to do .
We can't move more than a couple of miles away really. My eldest is in gcse years and they both have lots of local friends. We also have all of our family here that we need for support so cannot leave the area. Hopefully things will work out well. And I can choose a property wisely that has potential to either split a room or maybe has a second room/garage conversion downstairs that could be used as an additional bedroom