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Ask Clare Your Own Question

Clare
Clare, Solicitor
Category: Law
Satisfied Customers: 33303
Experience:  I have been a solicitor in High Street Practice since 1985 with a wide general experience.
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hi, i have two properties and living in one, the one im living

Customer Question

hi, i have two properties and living in one, the one im living is a buy to let mortgage, i have lost my job, can i claim benefits?
Submitted: 3 years ago.
Category: Law
Expert:  Ash replied 3 years ago.

Alex Watts :

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.

Alex Watts :

Do you have any income as a result of this or does it just pay the mortgage please?

JACUSTOMER-sc3326qx- :

only income i have is other property in which i receive 300 pounds extra

Alex Watts :

That income will be considered when making an application to benefits.

Alex Watts :

Whilst it is considered income and the first £20 can be disregarded the rest will be considered as income.

Alex Watts :

This means you would be entitled to benefit but it would not be full benefit.,

Alex Watts :

That is also assuming that the equity in the property is less than £16,000

Alex Watts :

If it is more than £16,000 then it will be counted as capital and you would not be entitled to benefit.

JACUSTOMER-sc3326qx- :

what is equity?

Alex Watts :

The value of the property, less mortgage.

Alex Watts :

So if your property is worth £100,000 and you owe £60,000 on a mortgage the equity is £40,000

JACUSTOMER-sc3326qx- :

the mortgage on the rented property was 121,000 when i took it out in 2008, i have 110,000 left to pay?

Alex Watts :

Yes, but what is today's value, 5 years on?

JACUSTOMER-sc3326qx- :

value is about 210,220,000

Alex Watts :

Then no, you would not get benefit because you have around £100,000 in equity

Alex Watts :

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.

Alex Watts :

Can I clarify anything for you about this today please?

JACUSTOMER-sc3326qx- :

what about the property im living in which is buy to let mortgage?

Alex Watts :

You are not likely to get benefit as it is excess capital. Only one property is exempt.

Alex Watts :

That would be the main one mortgaged and not the buy to let

JACUSTOMER-sc3326qx- :

the one i have on rent is residential mortgage

JACUSTOMER-sc3326qx- :

the one im living in is a buy to let mortgage

Alex Watts :

Yes I understand that.

Alex Watts :

Either way you will have an excess of capital - you have two properties. DWP will discount only one

JACUSTOMER-sc3326qx- :

ok, so which will i get a discount?

JACUSTOMER-sc3326qx- :

which one will i get discount on?

Alex Watts :

The residential one they will discount (exclude.

Alex Watts :

The buy to let one they will include in their calculation

JACUSTOMER-sc3326qx- :

ok, but the residential one is on rent, will i still get discount, or would i have to show i am living there?

Alex Watts :

When I say discount I mean excluded from calculations. They will also want to see what rent you are getting

JACUSTOMER-sc3326qx- :

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

Alex Watts :

They might yes.

Alex Watts :

But you just have to be honest and tell them what you own, how much you get etc.

Alex Watts :

But I suspect your limit will be over the capital allowance.

JACUSTOMER-sc3326qx- :

if they ask me if i want to claim housing benefits what do you think i should say?

Alex Watts :

You should say yes.

Alex Watts :

But as I said, I do not think you would be entitled.

JACUSTOMER-sc3326qx- :

ok, so which other benefits am i entitled to?

JACUSTOMER-sc3326qx- :

fact that i am now unemployed

Alex Watts :

None, because you exceed the capital limit of £16,000

Alex Watts :

You may have to sell one.

Alex Watts :

If you have assets more than £16,000 you are not entitled to benefit.

Alex Watts :

And you do - you have a property with £100,000 equity

JACUSTOMER-sc3326qx- :

what about job seekers allowance?

Alex Watts :

You wont get that because of the £16,000 limit too

Alex Watts :

I am sorry

Alex Watts :

But those are the rules of the DWP

JACUSTOMER-sc3326qx- :

what is your advise on my situation?

Alex Watts :

You need to sell one of the properties.

JACUSTOMER-sc3326qx- :

and then how can i go further and how would i benefit?

Alex Watts :

You might be able to yes.

Alex Watts :

Because if you only have one property then that is excluded.

Alex Watts :

Then you may be entitled to benefit

JACUSTOMER-sc3326qx- :

is it worth me going to interview tomorrow?

Alex Watts :

Yes I would, then you know where you stand

JACUSTOMER-sc3326qx- :

if i am not entitled to do anything

JACUSTOMER-sc3326qx- :

would it not cause me problem

Alex Watts :

Yes but at least you know and the reasons why

Alex Watts :

No

JACUSTOMER-sc3326qx- :

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?

Alex Watts :

She may be if she is not a joint owner.

JACUSTOMER-sc3326qx- :

shes not a joint owner on either of property

Alex Watts :

Ok. She may be entitled to benefit

JACUSTOMER-sc3326qx- :

wont they look at me as the husband, if not would it have to single application?

Alex Watts :

Well you said your wife is making a claim?

Alex Watts :

You can either make a joint or single claim.

Alex Watts :

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

JACUSTOMER-sc3326qx- :

what aboiut my wife would she be effected by this as well?

Alex Watts :

It may be considered.

JACUSTOMER-sc3326qx- :

how would it be considered?

Alex Watts :

If you are husband and wife then any assets may be considered jointly.

Alex Watts :

I am sorry that I can not say that you are entitled to benefits - you are not.

Alex Watts :

I wish I could tell you different but that would be wrong.

Alex Watts :

Your wife may be entitled to benefits depending on her circumstances.

Alex Watts :

But I can not assess that for you, only the DWP can.

Alex Watts :

Can I clarify anything for you about this today please?

JACUSTOMER-sc3326qx- :

so that means wife will be affected to what she can claim like me?

Alex Watts :

She may be able to depending on her circumstances.

JACUSTOMER-sc3326qx- :

what do u mean by circumstances?

Alex Watts :

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

Alex Watts :

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

JACUSTOMER-sc3326qx- :

hi, sorry had problem with laptop. I wanted to ask i have child, do i get child tax credit?

Alex Watts : You may be entitled to it yes.
Alex Watts : https://www.gov.uk/child-tax-credit
JACUSTOMER-sc3326qx- :

how much child tax credit will i receive?

Alex Watts : £2720 a year.
Alex Watts : Please remember to rate my answer thank you, otherwise the site does not pay me.
Expert:  Clare replied 3 years ago.
Hi
In fact if you have been working for for at least the last two years you will almost certainly get Job Seekers Allowance for the next six months
You and your wife can work out exactly what benefits you will be entitled to using the website
http://www.entitledto.co.uk/
I hope that this is of assistance
Clare

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