Housing/CT Benefit

[enaid]

I have been trying to work it if we are entitled to any sort of benefits for housing costs as our income has taken a bit of a nose dive lately.
Thing is we rent our property but have a property that we have on a mortgage and rent out.
I know about the proft from the rental etc and have followed all the proper chanels paying tax etc.
What I want to know is how do we estimate the capital ? and is it classed as capital even though we don't own the house outright.

[Amethyst]

Re: Housing/CT Benefit

The capital is the difference between the mortgage owed and the value of the property. It would need to be under £16k to qualify for HB.

The rental income obviously is added to your household income.

[enaid]

Re: Housing/CT Benefit

Thanks Ame that is how I read it and thats £16K per couple, correct ?
I also read if the house was up for salw (which it is) you may quakify for benefits for up tp 6 months, do you know anyhting about that?

[enaid]

Re: Housing/CT Benefit

How savings, investments and property affect your Housing Benefit and Council Tax Benefit

Capital we don't count for six months (and longer if it's reasonable)

• Any money you get to carry out repairs or improvements to your home or money you plan to use for repairing or replacing damaged or lost belongings. If you or your partner are 60 or over, we ignore this money for one year from the date you receive it. ·
• Any property you have bought or inherited which you plan to live in as your home.
• Your previous home if you are separated from your partner, from the date you left the property.
• Any property you are trying to sell, from the date you put it up for sale.
• Any property which must be repaired or altered before you can live in it, from the date you started getting the work done.
• Any sum you receive from selling your previous home, which you will use to buy a new home. We can ignore it for longer if it is reasonable to do so. If you or your partner are 60 or over, we ignore this money for a year from the date you receive it.
• Any property where you have started legal proceedings against the person living there to get possession so you can live in it, from the date you started proceedings.

http://www.manchester.gov.uk/info/50..._tax_benefit/4

[Caspar]

Re: Housing/CT Benefit

Hi Enaid

Web Benefits Calculator

Suspect you've probably used one of these, but posting just in case. May be useful!

From what you've posted your house is up for sale, so it would appear you qualify. What was the source of this?

[Amethyst]

Re: Housing/CT Benefit

Yes if the house is up for sale you could qualify for six months but it is a bit on a case by case basis and you are best applying and seeing. The place you rent that you live in, is that private rent or off the council ? Private rent you're looking at the LHA rather than HB (but I havent kept up with the recent changes) Also you're both under 60 arent you ?

If capital is between £16k and £6k you get some taken off your entitlement per £100.

Income from renting the house out (ie income from the capital) is actually treated as capital rather than income but again if it is up for sale then that rental income is disregarded as capital and well, treated as income.

So it actually will make a huge difference if the house is up for sale or not.

[enaid]

Re: Housing/CT Benefit

It's council, I have read up on a few council sites and it says either 6 months disregard if its for sale or 6 months disregard if the proceeds from a sale are for another house.
Yes we are both just under 60.
I have all the figures fro th income as i did it for tax purpose, will have a go then see what happens, thanks xx

[Amethyst]

Re: Housing/CT Benefit

The only weird bit is that if the house isnt up for sale then the rental income is classed as capital. If the house is up for sale it is classed as income. So affects you if the rental income takes you above the thresholds for means testing and the house is up for sale.

The age thing is just you are allowed more capital if you are over 60.

Council will be HB.

Let me know what they say. I thought I would get it (LHA) and be home and dry but as you know I fell in the ridiculous middle ground where you get sod all lol.