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Forum Home  →  Discussion  →  Work capability issues and ESA  →  Thread

ESA and housing costs

benefitsadviser
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Sunderland West Advice Project

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Total Posts: 1003

Joined: 22 June 2010

I have a very vulnerable client (chronic anxiety/mh issues) who used to own 2 properties, one of which she rented out, the other she lived in.

The rental one has a “buy to let ” mortgage on it, and it is interest only at £140 a month

She became very ill, couldnt cope, and sold the property she lived in at a loss and moved into the buy to let one.

The Building society are aware of this however arent too happy about her living there (whatever that means : she has nowhere else to live)

Anyway : She was entitled to IRESA last year but the DWP missed her EDP. Sorting IRESA backdate now

I have told her I will get an MI12 and get help with her housing costs, and try to backdate it also but she is being incredibly skittish, as her housing costs are £200 a month but her interest liability is only £140. She is paying mortgage from her DLA

Due to her fragile mental health she is absolutely petrified (and i mean petrified) of getting into “trouble” with her building society about this and i dont want her to come to any (self) harm.

So : Can anyone see the DWP having an issue with awarding housing costs on a buy to let mortgage, and has anyone had any experience of Building societies causing problems here with this type of arrangement?

They already know she lives there anyway so i dont see their problem. I advised she renegotiate the terms of her mortgage, but as she isnt working they wont talk to her.

Any pointers would be gratefully appreciated

Thanks

 

 

 

 

Ruth_T
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Volunteer adviser - Corby Borough Welfare Rights & CAB

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Joined: 21 June 2010

You will need to establish the precise terms of the Buy to Let mortgage.  Most BTL lenders require that the property is let on an assured shorthold tenancy of up to 36 months.  Most also have a clause which excludes occupancy by a close relative of the landlord, and there may be other restrictive clauses.

Ali D
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NHAS housing/debt caseworker - Shelter

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Joined: 18 June 2010

I would suggest that somebody gently reminds the lender of their responsibilities under Part of Mortgage Code of Business and in particular the requirement to treat customers fairly.