Hello my name is Alex and I will help you with this. Please note that I am a working Solicitor and may be on and offline as I have to attend Court and meet with clients, even at weekends. As such you may not get an instant response when you reply as this is not an ‘on demand’ live service, but rest assured I will be giving your question my immediate attention upon return.
Do you have any income as a result of this or does it just pay the mortgage please?
only income i have is other property in which i receive 300 pounds extra
That income will be considered when making an application to benefits.
Whilst it is considered income and the first £20 can be disregarded the rest will be considered as income.
This means you would be entitled to benefit but it would not be full benefit.,
That is also assuming that the equity in the property is less than £16,000
If it is more than £16,000 then it will be counted as capital and you would not be entitled to benefit.
what is equity?
The value of the property, less mortgage.
So if your property is worth £100,000 and you owe £60,000 on a mortgage the equity is £40,000
the mortgage on the rented property was 121,000 when i took it out in 2008, i have 110,000 left to pay?
Yes, but what is today's value, 5 years on?
value is about 210,220,000
Then no, you would not get benefit because you have around £100,000 in equity
I am sorry as I know this will not be the answer you want and its certainly not the one I want to give you but I have a duty to be honest.
Can I clarify anything for you about this today please?
what about the property im living in which is buy to let mortgage?
You are not likely to get benefit as it is excess capital. Only one property is exempt.
That would be the main one mortgaged and not the buy to let
the one i have on rent is residential mortgage
the one im living in is a buy to let mortgage
Yes I understand that.
Either way you will have an excess of capital - you have two properties. DWP will discount only one
ok, so which will i get a discount?
which one will i get discount on?
The residential one they will discount (exclude.
The buy to let one they will include in their calculation
ok, but the residential one is on rent, will i still get discount, or would i have to show i am living there?
When I say discount I mean excluded from calculations. They will also want to see what rent you are getting
i have interview tomorrow at job centre, the fact that rented property is on rent will that cause me problems to get discounts, wont they say to me why are you living in the buy to let property when it should be other way round
They might yes.
But you just have to be honest and tell them what you own, how much you get etc.
But I suspect your limit will be over the capital allowance.
if they ask me if i want to claim housing benefits what do you think i should say?
You should say yes.
But as I said, I do not think you would be entitled.
ok, so which other benefits am i entitled to?
fact that i am now unemployed
None, because you exceed the capital limit of £16,000
You may have to sell one.
If you have assets more than £16,000 you are not entitled to benefit.
And you do - you have a property with £100,000 equity
what about job seekers allowance?
You wont get that because of the £16,000 limit too
I am sorry
But those are the rules of the DWP
what is your advise on my situation?
You need to sell one of the properties.
and then how can i go further and how would i benefit?
You might be able to yes.
Because if you only have one property then that is excluded.
Then you may be entitled to benefit
is it worth me going to interview tomorrow?
Yes I would, then you know where you stand
if i am not entitled to do anything
would it not cause me problem
Yes but at least you know and the reasons why
ok, my wife is a housewife, she will be having interview soon as she does not have national insurance, any benefit for her or not?
She may be if she is not a joint owner.
shes not a joint owner on either of property
Ok. She may be entitled to benefit
wont they look at me as the husband, if not would it have to single application?
Well you said your wife is making a claim?
You can either make a joint or single claim.
You asked if you could claim benefit if you have 2 properties and the answer is no because of the reason I suggested in that you have more than £16,000 excess capital
what aboiut my wife would she be effected by this as well?
It may be considered.
how would it be considered?
If you are husband and wife then any assets may be considered jointly.
I am sorry that I can not say that you are entitled to benefits - you are not.
I wish I could tell you different but that would be wrong.
Your wife may be entitled to benefits depending on her circumstances.
But I can not assess that for you, only the DWP can.
so that means wife will be affected to what she can claim like me?
She may be able to depending on her circumstances.
what do u mean by circumstances?
It depends on her income, entitlement and whether or not she has paid national insurance. But this is going outside the remit of your initial question which was are you entitled to benefit.s
If this answers your question, please take a moment before you leave and rate my service, which I hope has been excellent, it only takes a second and is an important part of the process. Otherwise if you need more information or help then please click reply. Alex
hi, sorry had problem with laptop. I wanted to ask i have child, do i get child tax credit?
how much child tax credit will i receive?