Benefits help...

[jaffacakefan]

Hi all,
I am in a tricky situation financially and wonder if anyone can advise me please.

My husband and I have a mortgage on a home that we rent out to a family member as we outgrew it. We now privately rent the home we live in with two children

If we separated, as it's looking likely, I would need to claim universal credit to supplement my 20 thousand a year job to pay rent and bills etc.

Where do I stand with regards to fact we own a house, we have equity etc? In the long term we would sell it I should think but that doesn't help the immediate situation?? Any advice?

Signing it over won't work unless it's part of a divorce settlement, otherwise you might be viewed as purposely depreciating assets, then they work it out on what you would of had.

You will still get child benefit and child matainance from ex, if that will help you keep afloat until house sells.

Might be worth reducing sale price to sell more quickly, you'll end up with less money but still more then you would be signing it over.

Can the children not share the bedroom and you have a sofa bed?

An chance of upping your hours or a second job?

If not you will have to sell and declare the equity. You can't bulk pay off debts as it can be seen as deprevation of capital and you will be treated as though you still have it.

You need tailored individual advice.

IMO you should try CAB.

Can he not move back into the house

When you say you've done the online calculations have you put your rent in as 1050, or the local housing allowance for the number of bedrooms you are entitled to?

Not what you want to hear but housing isn't calculated on actual rent. So eg if lha in your area is £600, then effectively the other £900 of your wages will be considered as free income, even though in reality after rent you only have £450.

I think the only sensible plan is to sell the house asap.