Help with service charge and ground rent

Katrina65
Katrina65 Online Community Member Posts: 34 Connected
in Housing and independent living
Hi there I find myself in the horrible position of no longer being able to pay my mortgage out of my benefits. The last rate rise was the 13th I’ve had to endure in past 18 months. I will therefore be moving into a leasehold flat which I can afford to buy but the thought of paying these extortionate extras is scaring the life out of me. Some are as much as a mortgage over the period of a year. Can anyone tell me will I qualify for any help towards this? I cannot work and have legacy ESA and PiP. Many thanks. 

Comments

  • Katrina65
    Katrina65 Online Community Member Posts: 34 Connected
    The extras I mean ground rent and annual service charge 
  • poppy123456
    poppy123456 Online Community Member Posts: 64,456 Championing
    edited July 2023
    I know you can claim for some service charges (depends what it includes) i'm not sure about ground rent. To claim for help with these you will need to claim Universal Credit. A claim for UC will end any Income Related ESA you're claiming 2 weeks later.

    If your ESA includes any contributions based this will continue but be deducted in full from any UC entitlement.

    Edit to add, i found this link which says you won't be able to claim for help with ground rent. https://england.shelter.org.uk/professional_resources/legal/benefits/universal_credit/universal_credit_housing_costs_element_payment_condition

    I will tag a member of the scope team who will hopefully be able to advise you further. @Adrian_Scope can you please help here?
  • Katrina65
    Katrina65 Online Community Member Posts: 34 Connected
    Many thanks for your help, today I spoke to DWP and because I’m on income based they said I would get help with any additional costs in its entirety. I am very sceptical about this. In all honesty I don’t believe this is the case. If anyone is in a leasehold property I would really appreciate any thoughts. 
  • poppy123456
    poppy123456 Online Community Member Posts: 64,456 Championing
    I would never advise anyone to ring any DWP department for any benefits advice. When ringing them you're speaking to someone from a call centre, who very often have very little benefits knowledge.

    To claim for help with service charges you will need to claim Universal Credit because it's no longer possible to claim housing benefit in your case.

    You can also get some expert advice from an agency near you. Start here. https://advicelocal.uk/welfare-benefits

  • Katrina65
    Katrina65 Online Community Member Posts: 34 Connected
    Yes I do believe you are absolutely right. I am now looking at the option of the SMI Mortgage support but cannot even work out how that works?? It currently says that they pay 2.65% how is that even worked out? Does anyone know please? 😞 drowning in making the right decision 
  • honeybee700
    honeybee700 Online Community Member Posts: 5 Listener
    Please be aware that once you go on Universal Credit, you cannot go back to any legacy benefits.  Some people have lost out when they switch.  Please see this article by Martin Lewis-although its dated May 2022 its still got relevant information.

  • honeybee700
    honeybee700 Online Community Member Posts: 5 Listener
    This is another link explaining about SMI-hope it helps.

  • Katrina65
    Katrina65 Online Community Member Posts: 34 Connected
    Thankyou both for your valid input. 
  • Katrina65
    Katrina65 Online Community Member Posts: 34 Connected
    Wow that’s an eye opener if ever I need one. Trying to find something where I currently live that hasn’t got these ridiculous charges. Back to square one then 🤦‍♀️
  • L_Volunteer
    L_Volunteer Community Volunteer Adviser, Scope Member Posts: 7,921 Championing
    That sounds really difficult @Katrina65. Would anything help at the moment?
  • Katrina65
    Katrina65 Online Community Member Posts: 34 Connected
    I think my only option is the SMI loan which gets added onto my existing mortgage and has to be paid back with interest. This is not ideal at all. I no longer can get another mortgage because of my disability. Anyway everyone is suffering something so I shall just try and keep positive as I can and pray these rates come down. 
  • Hannah_Alumni
    Hannah_Alumni Scope alumni Posts: 7,863 Championing
    @Katrina65 Just wondering, do you have to pay the ground and service charges up front? Can you pay monthly and hope that is a little more manageable than all up front?
  • honeybee700
    honeybee700 Online Community Member Posts: 5 Listener
    Have you tried Shelter?  I've found them really helpful :)

  • Katrina65
    Katrina65 Online Community Member Posts: 34 Connected
    I would get help with the service charges but they’re so expensive it’s now not an option. Also yes I have found a lot of information from shelter very helpful. 

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