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SHARED OWNERSHIP WITH CASH NOT MORTGAGE (ON BENEFITS)


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Hi, I'm currently seperating from my partner of 25 years. He is planning to buy me out of the family home (which he owns and I invested my money in) and I'm planning to buy a 25% share of a shared ownership house with cash (so no mortgage). I then need to pay the rent on the remaining 75% and obviously general bill's etc... What I'd like to know though, is if anyone else has done this without being employed (I have MS), using benefits to support themselves and pay their rent? I've never applied for benefits before (with the exception of PIP that I've received for the last 5 years, and will be on-going), as my partner has always supported our family, whilst I've been the homemaker and taken care of our 12 year old daughter, school runs, housework, gardening, etc. I would be hugely grateful for any advise as I really dont know where to start. It's very difficult completing applications for a house of my own when they obviously want details of my income, yet I can't give them this as I simply don't know until I've actually got a place to go and begin claiming???? CAB advice says I'll be entitled to everything because of my health problems and the fact I have a daughter to take care of, but I could really do with some advice from maybe a financial adviser regarding the whole shared ownership thing... the impression I get is that the developer would bite my hand off as I'd be paying CASH as no mortgage lender would have a stake in my home too and I've obviously only got to find the money for rent and not rent AND a mortgage, making me a more desirable buyer. Ahhhhh!!!!! Help!!!!

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Heidi use an online calculator called entitled to or turn 2 us. This will calculate numerous benefits simultaneously.

You will probably be entitled to Universal credit which includes a personal element  child element, limited capability for work element and a housing element. Council tax suppoer is claimed separately. Your PIP will remain unaffected because it is not means tested. If someone receives Carers allowance for helping to look after you this can impact what you're entitled to. The other benefits are means tested. The fact you have cash to put 25% down may mean you are over the allowance for some benefits but if you use one of the above calcs they will tell you for certain.

This is a rough guide without knowing your exact circumstances. 

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I'm not sure this will work. If you were renting you might be entitled to LHA but if you own some of the house I don't think you will be entitled to it. Basically, benefits will support you but they won't help you to buy a house.

Citizen's advice might be able to help.

Good luck :) 

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