HB if landlord of other properties?

[Juniemay]

Can anyone offer some advice please. Until a couple of years ago I owned my own house and ran a successful business in Essex. I also bought 4 properties in the north of england which were rented out and managed by an agent. They all have mortgages on them. Due to the recession my business failed and rather than go bankrupt, I sold my house to pay off my debts and now live in a rented flat with my wife. However the houses are all in negative equity and the rental income just about manges to pay the mortgages and agent fees. I am 60 and have been unable to find any employment that is not zero hours and have not earned anything in over 6 months. My wife has a part time job which doesnt even cover our rent of £750 per month. We have now gone through nearly all of the money we had left from the sale of our house, down to under £2000 now . Would we be able to claim Housing Benefit?

[Conniff]

Not my subject, but my guess would be No. You would have to declare your 4 houses.

 

Unless the rent from 1 of your houses is in excess of £750 per month, then why not move into one of your own houses and save yourself the difference between what you charge and what you are paying. Also, why are you paying a management company, that is lost money.

[BRIGADIER2JCS]

As I understand it assets above 16K would preclude benefit.

[Juniemay]

Thank ypu for your response. I have never had to claim any benefits before and this is all new to me. I did ,of course, know that I would need to declare all assets,including the rental properties. Although they are worth more than £16000 cut off limit, the outstanding mortgages on them outweigh their market value. In addition they are in the North of England and we know no-one as all our life has been spent in Essex, where we have the support of our family. The stress of the last few years has affected my wife quite badly and I dont think we could face a move away from all we know at this time in our lives. We were hoping there may be another solution

[Conniff]

Responses might be slow because it's the weekend Juniemay, but hang in there, others with more knowledge on this subject will be along.

[raydetinu]

suggest you go to CAB and discuss this with them; if you can prove your assets are less than 16k then maybe you could get something.

Have you any pensions you can draw on or you may be able to get state pension credit payments

[abc123def]

I would think it would be best for you to sell the properties, which will end up being far less complicated for you. I know other people have declared bankruptcy so as to effectively write off any negative equity debt from property when it is sold following the bankruptcy.

[Surfer01]

I would think it would be best for you to sell the properties, which will end up being far less complicated for you. I know other people have declared bankruptcy so as to effectively write off any negative equity debt from property when it is sold following the bankruptcy.

 

If they sell properties that are in negative equity they will be even worse off as they may end up owing thousands instead!

[abc123def]

Surfer, that's why I linked it without declaring bankruptcy, then they wouldn't owe anything, the bankruptcy would write it off.

[Surfer01]

Surfer, that's why I linked it without declaring bankruptcy, then they wouldn't owe anything, the bankruptcy would write it off.

Not many people want to go bankrupt to get benefits and it also may affect the current lease on their current rented property. As suggested best for them is to consult CAB.