What can I do? Asset but no money

[Throwaway1999]

Background - single mother of 3, don't receive maintenance.

We live with family and I rented out the flat I owned pre-children as our only income which generated around 19,000 a year.

But the last tenants I had did not pay rent and trashed the property and only left after a very long battle. I can't have any new tenants due to the damage.

Due to the property being an asset I am also not eligible for any financial assistance, but the lack of rental income and damages have now depleted all my savings and I won't get help until I can sell it, but I have had no buyers interested in the property due to the damage. The agents I spoke to also said the market is dead in general and it's hard to find buyers, and offers are falling through.

How can I get help until the property is sold? CAB said there is nothing they can do and we're not eligible for anything except church food banks.

Put the property up for auction in its current condition.

Thank you I will look into this

If you would be eligible for Universal Credit but for the property and you're taking steps to sell it, for example taking and acting on advice as to how best to approach disposal in current circumstances, then it can be disregarded.

As above but then once you have sold the property if you have more than 16k form the sale you would have to stop your Uc claim until your savings have dropped back below 16k.

It’s difficult and I feel for you. Flats can be hard to shift at the moment. But all property will sell at some price so agree it will have to be the auction route. Then you’ll need to live off the proceeds until it’s nearly gone anyway so what you get for it isn’t even that important.

Really I didn't realise this? I spoke to CAB and they said I am not eligible for any help until it's sold

Speak to the Help to Claim team 0800 144 8 444; they're CAB's in house experts on new claims for UC.

There are various disregards set out in Sch 10 to the UC Regs 2013.

Thank you so much

Did you not have insurance to cover the damage ?

It didn't cover it. They literally ripped out all the insulation in the walls, it was terrible.

I genuinely don’t mean this rudely but could you get a job?

No - I have applied for everything under the sun but jobs can't accommodate my hours with school and nursery hours, and I wouldn't earn enough to qualify for free childcare hours or to afford wraparound care. I would actually lose money in childcare by working.

Could the family you are living with not help with childcare?

You need to revisit this, CAB might be better advising you. There are school hours jobs and you could use wrap around care. How old are your dc? Is there any family support to help give you longer available hours?

Any property can be sold if you are prepared to lower the price enough.

My youngest gets 15 hours nursery which is 5 half-days a week. None of the nurseries in my area will split up the hours any differently. Even if I went by my older DCs' school hours, factoring in commute times, I couldn't work a full shift. I went through the Careers Advice Service and they didn't help at all. I don't have anyone who could babysit for free and babysitting per hour would be more than I would earn per hour. Basically work is not an option atm even though I wish it were.

If you sell your property you won’t be eligible for benefits until your savings go below £16k. Once your savings are gone, who knows when and if you can afford to buy another property again.
As things stand, you are not eligible for benefits unless you’re taking steps to sell your house.

If I was you, I would move back in the property with the children (assuming it is safe to live in it, even if it’s in a bad condition). Then you’d be entitled to means tested benefits. Hopefully in time you can get some part time work and the extra bit of money can be used to slowly fix your property. You can then rent it out again if you wish.

Another option, again assuming the property is safe to live in, is to rent it very cheaply to someone on condition they fix it up (not sure that’s a possibility).

Or you could sell it and eventually be entitled to state benefits. But that would make me very worried about the future. What happens when the children grow up, I guess you’ll find a job but will that be enough to pay for your living and rent? What about when you retire, how will you cover your rental costs? What if state benefits are even more meagre then? Owning your home means you can always take a lodger to help increase your income

If your were living in the property you would be eligible foR Universal credit.

You need a childminder. Alternatively if you work 3 full days, you’ll need to pay towards the childcare fees.
Whilst you have your own asset and are living with family it’s clear you’re not entitled to benefits. I’m assuming that you didn’t consider looking for work whilst trying to evict your tenants?

I can't afford childcare fees or a childminder - it would cost more than I would earn - and I wouldn't earn enough to be eligible for subsidised childcare. I don't know why you are so stuck on this or why would assume I didn't look for work? I applied for work. I have been through the National Careers Service to see what my options are. It's not an avenue that is open to me and I have been clear about why that is in my responses.

Thank you, unfortunately it's a small one bedroom flat two hours away from us and it's not safe due to the extensive structural damage. It's definitely not ideal to have no assets or earnings but I have been trying to find solutions and live off cash savings and now feel that I have no option

Do you have a mortgage on the property? Could you get one? (Although with no income possibly not)

If your child is older than 3 you’re eligible for 30 free hours as long as you’re earning over the equivalent of National Minimum wage for more than 16 hours a week. (thats £195 a week). So for example if you got a job in a school kitchen working 4 hours a day x 5 days, even if you only got NMW you’d earn £244 a week and the childcare would be free. Add to that your child benefit and you’d have an income of just under £300 a week. But you don’t want to do that do you?
So you’ll have to sell the flat at whatever price an estate agent tells you it’s worth and then live off your savings.

It’s priced too high. Reduce it to sell it then live off your savings until you get a job

Why does the father(s?) not contribute towards the children?