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We are a charity providing information, advice and other support to disabled
people (which includes people with learning disabilities), carers and
professionals to improve access to housing in the owner occupied sector.
This site contains information on many aspects of home ownership from
raising the money to buy a property, to designing a house from scratch. If
you are disabled and have a question about home ownership that isn't
answered here, please contact Susan Watson on 0131 661 3400 or e-mail us at
oois@talk21.com.
Disclaimer
These pages contain general information only. Nothing in these pages constitutes legal or financial advice.You should consult suitably qualified professionals, e.g. a lawyer, Independent Financial Adviser, Welfare Rights Officer on any specific matter.
Ownership Options in Scotland makes no warranties, representations or undertakings about:
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any of the content of this web site (including, without limitation, any as to the quality, accuracy, completeness or fitness for any particular purpose of such content); or
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any content of any other web site referred to or accessed by hypertext link through this web site (“3rd party site”).
Ownership Options in Scotland does not endorse or approve the content of any 3rd party site, nor will Ownership Options in Scotland have any liability in connection with any of them (including, but not limited to, liability arising out of any allegation that the content of any 3rd party site infringes any law or the rights of any person or entity).
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WHO WE ARE
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Ownership Options in Scotland is a charity, no. SC 027335, and a limited company. It is run by a
voluntary Board of Management, with a majority of disabled people. Its main
financial support comes from The Scottish Executive and The Thistle Foundation.
What are our aims?
Ownership Options aims to create equal access for disabled people to
home ownership as a mainstream housing option. It aims to pioneer approaches
which enable disabled people, or households including a disabled person,
to overcome and eliminate current barriers to home ownership and to
achieve equal levels of inclusion, choice and control with non-disabled
people in the home ownership market.
To achieve these aims mainstream housing systems need to be more
accessible to disabled people. This means raising the awareness of
disabled people, the statutory, voluntary and private sectors of rights
and opportunities; providing information and campaigning to address the
physical, financial and legal barriers which presently exist.
What can home ownership offer?
 Choice
Control
Security
Value
for Money
The majority of Scotland's housing is now in the owner occupied
sector. It can therefore offer a greater choice of properties, in more
locations, than may be possible in the rented housing market.
Disabled people, or households with a disabled person, may have
income, savings or other financial resources which they wish to invest in
a suitable home. However they may face barriers to this choice of tenure
- financial, lack of suitable properties, legal issues or lack of
support.
60% of the general population in Scotland owns their own home. Only
38% of physically disabled people do, and a very small percentage of
people with learning disabilities. Ownership Options exists to provide
practical and technical support to ensure disabled people have equal
access to home ownership, and the information to decide whether this can
offer an appropriate and sustainable housing solution.
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WHO TO CONTACT |
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These are the people that work at Ownership Options.
Susan Watson - Susan is the Administrator, and manages most initial requests for information, and manages the office record keeping systems.
Rhona Cameron and Kirsteen Wishart - Rhona and Kirsteen are Housing Options Brokers. They provide information and advice to help you to work out whether ownership is an option for you, and if we can help you to overcome any barriers.
James Bee - James is the Policy and Practice Development Manager. He develops and maintains links with local authorities and other statutory and voluntary organisations
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Richard Hamer – Richard is the Director and oversees and develops the work of the organisation. He also provides information and advice, and is the person to talk to about training or consultancy services. |
You can contact us:
By phone: 0131 661 3400. The office is usually staffed from 8.30 am - 5.00 pm. Sometimes we will ask you to leave a message on the answering machine.
By letter: The John Cotton Centre 10 Sunnyside Edinburgh EH7 5RA
By e-mail: info@oois.org.uk
Working in partnership
The organisation works together with a wide range of people and agencies in the public and private sectors, to combine resources and expertise to develop appropriate housing solutions with individuals and landlords.
Under links you will find other useful organisations. Contact names and addresses are also provided under each of the topic headings. |
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NEWS
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Is your home adaptable?
Ownership Options has been contracted by the City of Edinburgh Council to devise an adaptability standard for housing in Edinburgh. The new standard will highlight properties that are worth a more detailed look by people with mobility difficulties, including parents with buggies as well as disabled and older people.
It is planned that the standard will be used both by private estate agents via the Edinburgh Solicitors Property Centre and in the Council's new 'choice-based' lettings service for council houses.
Disabled homebuying market ignored
The Scottish Executive's survey of households in Scotland in 2002 has shown that, whilst disabled people are more likely to own their house
outright than non-disabled people, they're less than half as likely to be buying a house using a mortgage.
The findings, whilst depressing, are not new to the Executive. Their recent report on private sector housing reported a lack of awareness
and understanding in the financial sector of the state benefit system as it applies to and works for disabled people, resulting in institutional
prejudice against the main source of income for 66% of disabled people.
Lenders see a reliance on benefits, as well as a fear of failing health, as an obstacle to lending to disabled people. Discussions between
Ownership Options and the Disability Rights Commission suggest this may be considered to be discriminatory. We'll keep you posted.
For more information on any of the above news or
to be places on our mailing list, please e mail us at oois@talk21.com or
contact Helen, Doreen, Susan or Richard on 0131 661 3400
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LINKS
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WELCOME TO THE FINANCE SECTION
In this section you will find helpful information about the costs of
buying your own home, and help available.
Some of the topics covered are the costs of buying your own home,
buying a home while on state benefits, grants, help available and a form
to find out if you can afford your own home.
Please click a link below to find out more.
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BUYING A HOME : THE COSTS
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A guide to the main costs, and sources of help.
Buying a home involves financial and legal transactions which can be quite
complex. We provide information and advice, but we are not lawyers or
financial advisers. Everyone should seek appropriate professional advice.
Around 80% of people in Scotland would like to own their own home.
Nearly 60% already do. If you are one of the 20% who are thinking about
buying, and you are disabled, then here are some helpful facts on costs,
help with costs, and where to get advice before you decide.
Before you buy
Before you decide to buy, take a look at all your housing options: ·
renting from the local authority · renting from a housing association ·
renting privately · shared ownership full ownership. Think carefully
about which option suits you best! It isn't always best to buy - and for
many people renting meets all their needs, including getting a house with
suitable adaptations. But if you have considered these options and still
want to own a home of your own, here is a guide to the costs you can
expect to pay.
Costs of Buying The Mortgage.
What is a Mortgage? It is the legal term for a loan where you give
the title to your home in security for the loan of money to buy it.
People take out mortgages to buy a home or to do repairs and improvements
to their property. The loan usually lasts for 15 -25 years. Most people
raise the money to buy a house through a mortgage lender - a bank or
building society. A lender will fund most or part of your house purchase,
depending on the size of deposit you are able to make on the house.
There are several different types of mortgage, and which one you
choose depends on your circumstances. Lenders offer a large range of
packages, all with different monthly payments and conditions, and to find
out which one suits you best you may want to talk to a Financial Adviser.
Advisers can either be 'tied' to one financial institution or they can be
independent and represent a selection of lenders. Whichever you choose,
ask to see a choice of mortgage packages from different lenders.
Once you have found a lender you want to approach, they will want to know:
· your income and where it comes from · the value and costs of the house
you want to buy · your financial situation: do you have other loans or
debts? Do you have rent or mortgage arrears? Are there any bad debt or
court judgements against you? What are your savings or investments?
The Deposit.
Lenders will usually require a deposit of at least 10% of the value
of the property you want to buy. If you need to borrow more than 75% of
the value of the property, your mortgage will be considered 'high loan to
value', and most lenders will require a fee from you to cover the
additional risk of lending such a high percentage of the value.
Legal Fees In Scotland.
You will need a solicitor in order to buy a house. The solicitor will
charge you legal fees for professional advice as well as for providing
the legal documents for the mortgage and the house purchase. The cost of
legal fees varies according to the cost of the property and how
complicated the transaction is, but you should budget for around £750.
Survey
To get a mortgage you will need a valuation survey done on the
property you want to buy. Your solicitor can usually arrange this.
Different types of survey are recommended depending on the age and type
of property, and you may prefer to commission a more thorough survey than
your lender asks for. This will cost between £IOO and £500 depending on
which type of survey you want. Before instructing a survey, however,
check that your surveyor is approved by your lender! Otherwise you may
have to pay for a separate valuation survey for the lender.
Stamp Duty Land Tax
Stamp Duty Land Tax (formerly Stamp Duty) is a Government tax payable on the total price if the price of the house bought is more than £125,000. If the house is bought at a price over £125,000 but not exceeding £250,000 duty is charged at 1%. For amounts over £250,000 but not more than £500,000 the rate is 3% and if the purchase price is more than £500,000 the rate is 4%. It is worth noting that there are some areas, known as 'disadvantaged areas', which are exempt from stamp duty land tax if the purchase price is less than £150,000. You can identify these areas by going to the Inland Revenue web site www.inlandrevenue.gov.uk/so/disadvantaged.htm or contacting your solicitor.
Interest Rates
Interest rates constantly go up and down, and on some mortgages this
will change the amount you pay from month to month. Allow for increases
and don't overstretch your budget! If you can't keep up your mortgage
payments, you could lose your home. Property Values Property values also
go up and down, though generally speaking they rise over time. It is important
to consider the risk of a short-term fall in prices and how this would
affect you, before you take out a mortgage.
Costs of Moving House
After you have bought a house, you will need to arrange a removal,
including costs such as installing a telephone and any white goods,
carpets or furniture that are not included in the house price. You may
also need to make adaptations to the house, like getting a ramp installed
at the front door. Check what you will need before you move so you have
the money to cover it!
Budgeting Once You've Moved in
Once you are happily settled, the house will cost money to run. Costs
include not just electricity and utility bills and council tax, but some
maintenance and repairs. The survey report can help to identify areas
that might need attention in the near future, like paint on window
frames.
Help with costs
All of the costs listed so far can add up to a substantial amount of
money. It is important to know how you are going to manage. If you do not
have much put by in the way of savings, there may be ways to get help
with some of these costs:
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gifts and loans e.g. from family members
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grants (for example for adaptations)
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adding certain initial costs to your mortgage e.g. legal fees
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DSS benefits, such as community care grants
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Also, if you are disabled and on Income Support, you may be eligible for
help with payment of your mortgage interest. Ask your adviser if you
think you might qualify. If your new home needs adaptations made to it,
you will probably want to ask your occupational therapist to help you.
You may need specialist technical advice on how adaptations can be made
and paid for. For example you may be eligible for a local authority
grant. See the Technical section:'Adapting Your Home'
Getting further advice
Buying a house can look complicated at the beginning, but if 60% of
people in Scotland have already done it, it can't be that hard! You will
get a lot of help along the way - much of the process can be handled by
your solicitor and financial adviser.
Ask for help and advice from:
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Your solicitor
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Banks or building societies
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Independent Financial Advisers
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Solicitor's property centers
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Estate agents
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Builders or developers
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Any Citizens Advice Bureau
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Other useful contacts
The Council for Mortgage Lenders and HomePoint (part of Communities Scotland) produce a very useful booklet
called 'How to buy a home in Scotland'. If you do not find this at your
local bank or building society, contact them on 0131 313 0044 for a free
copy.
The Financial Services Authority has an excellent, plain English,
booklet called 'FSA guide to mortgages', contact their
freephone number 0845 606 1234 for a copy.
And of course, Ownership Options is also ready to direct you to the
most appropriate source of advice to meet your needs.
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BUYING A HOME ON BENEFITS
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Buying a house while receiving state benefits
It is a fact of life that many disabled people have to rely on State Benefits
as part or all of their source of income. However this does not have to
be a barrier to buying a house. In some cases much of the cost of buying
can be met from your benefits, in particular from Income Support or
Income Based Job Seekers Allowance (IBJSA) to help with the costs of
mortgage interest.
This screen is a summary of the rules to help you determine whether
you might qualify.
When State Benefits are payable to meet housing costs If you, or a
member of you family, is disabled, and you need or want to buy a house
that is more suitable to the needs, and you depend on state benefits as
your main source of income, you may well qualify for help with the costs
of buying a house.
Mortgage interest costs can be included in the calculation of your entitlement
to Income Support of IBJSA. In most situations this support is only
available if you took out the mortgage loan before you started claiming
Income Support. However the rules are more favourable if you are buying a
house to suit the needs of a disabled person.
Before you can qualify for help with your housing costs you need to
prove three things.
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You must qualify for or be receiving Income Support or IBJSA. Get
advice if you are unsure whether you qualify or not, and if in doubt
claim anyway.
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The loan must be for the house which is your main home.
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For a new loan, you or a member of your household must be defined
as 'disabled'.
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You are treated as disabled if you can satisfy the conditions for a disability
premium, disabled child premium, enhanced pensioner premium or higher
pensioner premium. You do not have to be actually receiving these
premiums to qualify. You only have to satisfy the conditions for
receiving them. In practice this means anyone for whom a disability
benefit, such as Disability Living Allowance, is being paid.
In most cases you must have been entitled to (although not
necessarily receiving) Income Support or IBJSA for 39 weeks before you
will get any help with housing costs. However in some situations e.g. if
you are a carer or a single parent whose partner has left or died, this
is reduced to 26 weeks. This is called 'the waiting period'. So if you
take out a loan after receiving Income Support for 9 weeks, you would
have to wait for another 30 weeks before you would get help with the
costs. But if you have already been receiving Income Support for 26 or 39
weeks (whichever applies) when you take out a loan, then you can get
increased help for housing costs straight away. If you take out the loan
while you are receiving Income Support, or during a break of less than 26
weeks, then you can get help meeting your housing costs if:
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You take out a loan, or increase the loan you already have, to buy
a house that is more suited to the needs of a disabled person than the
one you live in now. This could include moving home to be nearer a
carer. Bear in mind that you must be able to show clearly why your
current housing is not suitable and you need to move!
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You take out a loan to adapt your home for 'the special needs of a
disabled person'. This can include adapting the home to provide for a
carer, for instance by providing sleeping space for someone who lives
in and cares for you. Restrictions
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If you already have a mortgage and are receiving Income Support for
Mortgage Interest, and if you increase the loan, for instance to move
house, then your benefit will usually be restricted to the amount of
the previous loan.
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If you were previously renting, assistance with costs may be
restricted to the amount of Housing Benefit you were receiving for your
previous accommodation.
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Normally if you take out a loan while you are receiving Income
Support, or during a break of less than 26 weeks, you will not receive
help with the costs. However, none of these restrictions applies if you
take out a loan in order to buy a house more suited to the needs of the
disabled person than where you lived before.
Limits on the amount of benefit payable
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a limit of £100,000 on the amount of a loan on interest payments will be
met by state benefits. However, loans taken out to adapt your home 'for
the special needs of a disabled person' are exempt and do not count
towards this limit. The amount of housing costs met by benefits may be
restricted if they are regarded as 'excessive'.
This may mean that the house is larger than you need for your
household, or the area you want to live in is more expensive than other
areas with suitable accommodation, or your expenses are higher than they
would be in other suitable accommodation in the area.
The age and state of health of family members will be taken into
consideration when a decision is made about how suitable the
accommodation is.
Income Support for Housing Costs will not repay capital on a loan. It
will only pay for interest. You need to be careful about the type of
mortgage loan taken out.
Check whether you are repaying capital or just interest on your
mortgage and how much of the mortgage payment you would have to meet from
your own resources over time.
Neither will this benefit cover insurance premiums on life or endowment
policies linked to your loan, or buildings insurance. A mortgage lender
may require you to have some of these insurances to protect your home as
an investment. Watch out for these extra costs.
How mortgage interest benefit is calculated You need to be aware that
the interest that state benefits will pay on a loan for your house will
not necessarily be the same as the mortgage interest which you need to
pay.
The DSS calculates interest payments on a home loan by applying a
Standard Interest Rate rather than the actual interest you are charged by
the lending company. This means that the benefit payable for your
mortgage interest may be less than your actual interest rate.
Anybody taking out a mortgage or home loan must think about whether
they have the means to pay this difference themselves, not to mention the
other costs of buying and maintaining a home!
More information
This is not a comprehensive statement of the DSS regulations, which
can be quite detailed and complicated. If you think you might qualify for
Income Support of IBJSA assistance in buying a home, or would just like
to talk it over, please contact us for more information. You may also get
advice from your local Disabled Persons Housing Service, the Welfare
Rights Officer at your local Council, Citizens Advice Bureau, and from
the Benefits Agency.
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BUYING A HOME ON BENEFITS - a step by step guide
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This information is for disabled people, or their families who have
considered their housing options and are actively are planning to buy a
house using Income Support or Income Based Job Seekers Allowance to
meet the costs of mortgage interest.
Here are the steps you will need to take.
Be sure your entitlement to Income Support (or IBJSA) assistance
in paying mortgage interest is clear. Normally you must have been
receiving Income Support (or IBJSA) for at least 39 weeks, and the
reason for taking out a mortgage must be in order to buy a house that
is more suitable for a disabled person's needs than the one they are
now living in. If you are currently receiving Housing Benefit, check
whether Income Support Mortgage Interest assistance would be restricted
to the same amount, or if you qualify for a different rate of assistance.
Assess your Benefits by talking to a welfare benefits adviser or
the DSS about your entitlements if you are moving out of hospital or
residential care (if this applies), or if your circumstances are about
to change.
Check if any medical or other evidence (like a social worker's
assessment of need for family support) will be needed to support your
claim. Get this evidence.
Establish that the Benefits Agency will in principle meet the
costs of your mortgage interest on a chosen property. If possible,
obtain a letter saying so to give to the mortgage lender. The DSS will
not give a guarantee of entitlement, but they will be able to provide a
general statement of the regulations that will apply.
Identify how you are going to fund your legal fees, survey
costs, and the deposit on the property. Most lenders require a 10%
deposit and many charge a premium on any loan over 75% of the value of
the property. Be ready for this expense. Also you may need to pay for
removal costs, new furniture, possibly council tax, and over the long
term your endowment policy or capital repayments and buildings
insurance premiums. This may sound a lot, but some of it can be spread
over time! Also don't forget you need to maintain the house once you
live in it.
Find a willing mortgage lender. Your financial adviser will help
with this. Complete a mortgage application and get an offer of a
mortgage 'in principle'. If you are having trouble with this part of
the process, Ownership Options may be able to advise and support you
with options.
Consider the costs of life cover, endowment or other savings
plans linked to the loan, or any other loans you need to support the
mortgage. A mortgage entails a series of linked agreements and careful consideration
is vital beforehand. Your mortgage lender or financial adviser will
help, and Ownership Options can refer you to recommended advisers.
Appoint a solicitor to note interest in the property, to
instruct a valuation and survey, and to act for you in making an offer
and completing a sale. You can often agree a fixed fee before you
start. If you do not already have a solicitor, pick somebody you feel
you like and can trust. Your solicitor can be your legal adviser for a
lifetime.
Have the property surveyed and valued.
If you are buying a house for a physically disabled person,
obtain the assessment of an Occupational Therapist on the suitability
of the property for the needs of the disabled person who will be living
there.
Be sure that if any adaptation is required to the property, the
local authority would meet the costs and check which adaptations they
will pay for. You may need to arrange and finance some of the costs
yourself.
Get a firm mortgage offer from the lender.
Get quotes for life and/or endowment insurance if applicable.
Check the expected costs of ownership against your income and
take your time to make a decision on whether the mortgage is affordable
and sustainable. Then go ahead.
Make an offer for the property.
If your offer is successful, your solicitor will be able to
conclude the purchase. Once an entry date for the property is decided
(you agree this with the seller) and the mortgage is in place, request
and fill in DSS form M1 12 for Income Support help with housing costs.
Some DSS offices and some lenders operate a 'Payment Direct' scheme
where your Income Support for Mortgage Interest is paid direct to the
lender. Check this.
Move in - and enjoy your new home!
If all this sounds complicated - it is! But plenty of people do it
every week, and much of the work is done by the solicitor and advisers,
leaving you free to make the important decisions. If you want to talk
it over, contact Ownership Options in Scotland Ltd. We are ready to advise
and support you in becoming or remaining the owner of your own home!
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PAYING FOR HOME OWNERSHOP USING THE BENEFIT SYSYEM
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A detailed look at the Income Support rules.
This information is for people who want to buy a house that is more
suitable to the needs of a disabled person than the house they are living
in, or to adapt the home they live in.
It is aimed at people who depend on State Benefits rather than on
earnings as their main source of income, and provides some detailed
information about the rules.
When do you qualify for help with costs?
When you are buying a house that is more suited to the needs of a
disabled person, the rules about help with housing costs are more
favourable than usual.
In that case you will be allowed help with interest on a mortgage
that you take out while you are getting Income Support, whereas to get
help in most other situations you would have to have taken out the
mortgage before you started claiming Income Support.
Also, you do not necessarily have to be disabled yourself to get help
in Income Support to buy a house. If you are buying the house because it
is more suitable to the needs of somebody else in your household who is
disabled, you can still qualify for support.
Who can get help?
A 'disabled person' is defined as anyone for whom a disabled child
premium, disability premium, enhanced pensioner premium or higher
pensioner premium would be payable in Income Support.
In practice, this usually means anyone for whom a disability benefit
like disability living allowance, attendance allowance or severe
disablement allowance is being paid.
It can also be anyone who is 75 years old or more, or who has been
incapable of work for benefit purposes (ask your adviser what this
definition means in practice) for at least 52 weeks.
To get help, you, or someone in your household, must qualify as a
disabled person on the date that the loan to pay for the house is taken
out.
Apart from this, and satisfying the basic rules for entitlement to
Income Support, you must be liable to pay the housing costs and the
housing costs must be for the home you normally live in. Are you 'liable'
to pay housing costs?
You count as liable to pay housing costs if:
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You, or your partner is liable to pay them, for example the
mortgage is in your name. You do not have to be legally liable. However
you do not count as liable to pay costs if you pay these to someone who
is a member of your household. In other words you cannot claim housing
costs which you then pay to a relative who lives with you.
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You are treated as if you were liable for the costs e.g. if you
share the costs with other members of your household
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Someone else is liable to pay them but is not paying them, so you
have to meet the cost yourself in order to continue living in your
home. You must show that it is reasonable for you to pay instead of the
person who is liable. An example is where you have separated from your
partner who is no longer living in the home.
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What types of housing costs can Income Support help with?
The housing costs you can get help with include:
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mortgage interest
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the interest on a loan taken out to pay for your home
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interest on a loan used to pay for adaptations or certain repairs
and improvements to your home, which can be added on top of your basic
mortgage interest assistance
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service charges like a property management or factoring fee, or a
share of common repairs (like repairs to common stairs, roofs, and some
shared outside walls).
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It is important to remember that only the interest part of a mortgage
can be covered by Benefits. It will not cover capital repayments, or buildings
insurance, or premiums for life or endowment policies, or the costs of
general maintenance.
It is advisable to estimate these costs and check that you will be
able to afford them from the rest of your benefit income. Mortgages
A mortgage is the legal term for giving over the title to your home
in security for a loan.
Mortgages come in several forms. The two most common are capital
repayment mortgages and endowment mortgages. If you qualify for state
benefit for mortgage interest, then you will need to find out which type
of mortgage is best for you because the assistance you receive will only
pay toward the interest, not toward the capital you owe on a house.
This means that on an endowment mortgage, you will get no help to
cover your endowment premium, and on a capital repayment mortgage the
assistance will cover only the interest, and not the capital element, of
your loan.
An adviser can give you more detail here.
How is help on mortgage interest worked out?
The DSS calculates entitlement to payment on a loan for a house by
applying a Standard Interest Rate rather than the actual interest you are
paying, unless the rate falls below 5%.
However the DSS does not necessarily change its interest rate at the
same time as the banks. So what you get in Benefits towards interest on
your mortgage payments may be less than your actual interest rate. You
need to keep some money aside in case you need to 'top up' the payment to
your lender from time to time and to make sure your mortgage account does
not get into arrears.
An independent adviser, like someone at a CAB or staff at Ownership
Options, can help you figure out the sums. Also you should always seek
independent financial advice regarding the most suitable mortgage for
your individual circumstances.
Limits on loans or amount of benefit payable
Normally help with interest on loans up to £100,000 can be offered to
you. However if you are taking out a loan to adapt your house for the
special needs of a disabled person, this does not count towards the
£100,000 limit. Assistance may be restricted, though, if the Benefits
Agency thinks the amount of your loan is 'excessive', even if it is less
than £100,000. This may be because the house you are buying is larger
than you and the other members of your household need (allowing of course
for extra space for wheelchair access and so on), or if the house is
expensive compared to suitable accommodation in the same area, or if you
could move to another area where less expensive accommodation would suit
your needs. But no restrictions will apply if you cannot get suitable
alternative accommodation, or if it is not reasonable for you to look for
cheaper accommodation. Your own circumstances and those of your family
will be taken into account here.
Generally speaking people receiving Housing Benefit before buying
their homes will be restricted in the assistance they get with housing
costs to the level of Housing Benefit which they were receiving before
they took out a loan to become a home owner. However this will not apply
to you if you are buying a house more suited to the needs of a disabled
person than the house you are in now.
Can benefit be reduced because other adults live in the house?
If you normally live with adults 18 years old or more, deductions can
be made from your housing costs for each of them. Normally there will
only be a deduction (called a 'non-dependant deduction') if the adult is
a close relative.
However, many disabled people are exempt from non-dependant
deductions in housing costs. For instance there will be no deduction where
you or your partner get the care component of disability living
allowance, attendance allowance, or any equivalent benefit under the
industrial injuries or war pension scheme.
If you or your partner are blind, you will also be exempt from such
deductions. An adviser can tell you all the qualifying rules.
For situations where people like boarders or lodgers are living in
your house different rules apply, especially if you are charging them to
be there. However where someone who is not a relative is living with you
in order to provide support or care these adults should not count against
your benefits.
For more detail about who does not count as a non-dependent see an
independent adviser.
Time limits before you can get help with housing costs
Different rules apply depending on the date you took out a loan.
For all loans taken out after 2 October 1995, the normal rule is that
you must have been getting Income Support or IBJSA for at least 39 weeks,
with no breaks longer than 26 weeks, to qualify for help with housing
costs. But you can get help right from the start of your claim if you
are: · 60 years old or more · claiming for payments as a crown tenant ·
claiming under a co-ownership scheme (this is not the same as shared
ownership) If you are not in one of these categories, you will usually
have to wait the 39 weeks for assistance.
However, there are exceptions. If you are:
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a single parent whose partner has left you or died
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claiming Income Support as a carer
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in prison awaiting trial or sentence
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Someone who has been refused payments under a mortgage protection
policy because you have a pre-existing medical condition or are HIV
positive you will get:
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nothing for the first 8 weeks
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half your housing costs for the next 18 weeks
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then full housing costs after 26 weeks on Income Support or IBJSA.
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If you have already been entitled to Income Support for 26 or 39 weeks
(whichever applies) when you take out the loan, then you can get
increased Income Support for housing costs straightaway, providing of
course that you satisfy all the other requirements.
So if you are thinking about moving to a house where you might be
eligible for assistance of this kind, claim Income Support immediately to
see if you are entitled to it. You have nothing to lose!
Reducing the waiting time for help with housing costs
The important term here is 'entitlement' to Income Support. The waiting
period for help with housing costs can be reduced if you are treated as
having been 'entitled' to Income Support during an earlier period, even
though you may not have been receiving it.
In this way, periods when you are not getting Income Support can also
count towards your qualifying period. For instance, you will be treated
as being in receipt of Income Support when you are not entitled to Income
Support because your income or capital is too high, but:
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you are getting incapacity benefit, statutory sick pay, severe
disablement allowance, or contribution-based JSA (or national insurance
credits for unemployment or incapacity)
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you are a lone parent or claiming Income Support as a carer
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you are getting payments under a mortgage protection policy.
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You are also treated as being in receipt of Income Support when you
or your partner has stopped getting Income Support because you are on a
training rehabilitation programme or your partner was claiming as a single
person before you started claiming as a couple (providing you claim
Income Support within 12 weeks of becoming a couple), or your partner was
claiming for both of you.
These rules are complex even for experts and the details above are
not exhaustive. You should seek advice on how all the specific conditions
apply to you. But what is important is not to be discouraged from asking
for help.
You may well qualify for significant assistance in buying a home to
suit your needs. Ask now!
One family's story
Sometimes it is easier to see how
you can use the benefit system, and afford home ownership, by looking
at an example.
Mr and Mrs Martin and their two
children are council tenants. Both are physically disabled, as is
their son, and the house is not suitable for people with mobility
problems, with bedrooms and bathroom upstairs.
Mr Martin was recently made
redundant and the family is now receiving Income Based Job Seekers
Allowance, and Housing Benefit.
With two disabled adults and one disabled
child in the family, the family has an income of around £14,000 per
annum excluding housing benefit and Disability Living Allowances.
After 12 years on a council
waiting list for a suitable house, Mr and Mrs Martin decided to
purchase a suitable home. Mrs Martin's grandfather is willing to help
with a deposit of £10,000, having planned to leave this money to his
granddaughter in his Will in any case.
If this money had been left by
Will, it would have adversely affected the family benefits. However
this does happen if the capital is used to purchase the main family
home. The family were able to raise a mortgage of £50,000 based on
their current income and expected income, assuming that instead of
Housing Benefit they would become entitled to help through the Income
Support system.
The family bought a suitable
single storey bungalow for £60,000.
Before they bought the house they
asked their occupational therapist to check that it would be easy to
adapt. It needs some minor adaptations to make it suitable for a
wheelchair user and with the help of the Occupational Therapist the
family has applied to the Council for a grant to cover the cost of
the work.
The Martins applied to the DSS for
help with their mortgage interest costs. However because Mr Martin
has only been claiming IS for 16 weeks, he will have to wait another
23 weeks before he is entitled to the extra benefit.
He had been advised that this
might be the case, and before taking out the loan had made sure that
the family had sufficient savings to meet the interest payments
themselves during this period.
Both Mr and Mrs Martin have taken
out life insurance and a payment plan eventually to repay the
mortgage and they meet these costs from their normal benefit
entitlement. Mr and Mrs Martin have costs which they did not incur
while they were tenants. But they are sure they can afford it, and
are more than happy to be home owners in a suitable home which they
chose to meet their needs.
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HOME IMPROVEMENT GRANTS
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How do I apply?
An application for grants must usually be made on a special form, and
include plans and costs for the proposed works. You must not start the
work before you hear the outcome of the application.
What can the Council Give Grants For?
- Making a house more suitable for the needs of a disabled person who lives there
It is also possible to obtain grants to install standard amenities such a toilet or running water. For more information about all grants please see The Scottish Executive's Applicant's Guide to Improvement and Repair Grants for Private Housing They also provide an online calculator that can give potential applicants an idea of the percentage grant they are likely to receive.
Do the council have to give me a grant?
The Council must give you a grant (within the limits of its budget) to
- Install any additional standard amenities which are needed because a disabled person cannot use the existing ones
For other adaptations to make a house more suitable for a disabled person the Council may have their own guidelines to decide which types of work have priority for funding.
How much grant can I get?
Councils can give grants for work that costs up to £20,000 in total. They can also apply to the Scottish Executive to grant more than this if there are good reasons. They can raise the amount after work has started for example if problems are found once work is underway.
Grants to make a house suitable for the accommodation, welfare or employment of a disabled person will be for a minimum of 50% of the costs. You may need to pay the remaining 50% in full or in part depending on your income level.
Do I have to contribute to the cost?
The council will means test you to decide if you have to contribute to the cost. They will normally look at the income of the owner and their partner for the previous year when deciding this. If the disabled person is not an owner or their partner, the income of the disabled person will be used in the calculation instead. If you are in receipt of income support or income based job seekers allowance or the guarantee element of pensions credit you will be eligible for a 100% grant.
Can you challenge the Council's decisions?
Yes. If you are not satisfied with the decision of the Council you
can:
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Complain to the Head of the Department which has taken the
decision, through their complaints procedure (which should be
published). You must exhaust the internal complaints procedures
before you take the complaint further.
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If you are still not satisfied with the local procedures you can
ask the Local Authority Ombudsman to investigate. The Ombudsmen has a
duty to investigate maladministration on the part of a local
authority and can include decisions about entitlement to services
under the 1970 act or the payment of grants.
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Finally you may be able to take the Social Work Department to
court by means of a judicial review. You would normally only do this
if your case is very urgent and you have used up all other remedies
open to you.
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If you need more information or are in doubt of the rules then you
should seek advice from a housing law specialist.
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LEGAL ISSUES
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Please use this section to help guide you through the various legal
problems that may present themselves.
Information can be found on such topics as:
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CAPACITY & CONTRACTS
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Introduction
Most people contacting Ownership Options for information start from the
need to find a suitable property for an individual or a family, for
people who are related or for friends who wish to live together.
Sometimes parents or support organisations have capital resources
which can be used to support all or part of a house purchase. Individuals
who receive Income Support may be entitled to help with the costs of
mortgage interest, or to housing benefit if they rent the property (even
if they rent the property from relatives). If you want to know more about
this, ask for our separate information leaflets.
There are different types of ownership and different ways in which it
may be possible to acquire a suitable home for a disabled person. The
route you choose may depend on a combination of factors concerning
sources of finance to support the initial purchase, sources of finance to
support the costs of a mortgage loan and the other costs of owning a
home, and legal factors.
This Section describes some of the legal factors to consider. Please
be aware that we are not lawyers and the information is not a statement
of the law.
Capacity
Capacity means that a person has the ability to make decisions and
stick to them, to understand that they have a choice, and to understand
the contract into which they are entering. The level of capacity required
therefore for some types of decision or contract is much less than for
others. This is not always clearly understood by prospective lenders or
even by solicitors.
Contracts
When someone buys a house they enter into a contract to purchase.
This means understanding that the commitment to buy the house is binding,
and that money will have to be found to pay the seller on a specific
date.
They may also need to take out a loan, and this involves another contract
- the mortgage loan agreement. The lender and the solicitor will want to
know that the borrower understands why they are asking for a loan, and
that that it will have to be paid back and what will happen if they fail
to make the repayments.
Depending on any other sources of finance e.g. grants or other types
of loan, there may also be other contracts supporting the purchase of the
house. A solicitor will not take an instruction from someone to buy a
house, and a lender will not lend money, unless they have confidence that
the prospective purchaser understands to a sufficient degree what they
are doing. Bear in mind that most people buying a house do not know or
understand all of the details in the contracts they are undertaking -
that is why they employ a solicitor.
Where the person does not have the level of legal capacity needed to
have sufficient understanding of the contracts involved in house
purchase, there are other options and these are explained below.
Power of Attorney
See the section called 'Power of Attorney'
Ownership by a Member of the family
It is possible for a member of the family to purchase a house and
seek to have mortgage interest costs covered by the client's Income
Support. However the DSS would have to be satisfied that if the person
liable for the payments i.e. the member of the family, cannot make them,
then the claimant could be made homeless. Alternatively, the family may
become the landlord and lease the property for a rent to the person, who
may then have to claim housing benefit in order to meet the charges. The
Housing Benefit assessors need to be satisfied that the tenancy is not
'contrived' under Housing Benefit Regulation 7(1).
Example: A severely disabled man, within significant support
needs, required to live in a particular type of house and locality in
order successfully to live in the community. Over two years no social
housing provider had been able to offer suitable housing, and did not
anticipate being able to do so in the foreseeable future. The Social
Work Department was clear about the housing needs and that it was no
longer sustainable for him to continue living with parents. The
parents could raise the capital to purchase a suitable home for their
son, but could not afford to do so without financial recompense. In
other words they needed a rental income from any property purchased.
Their son was on Income Support and could be given a tenancy. Would
he be eligible for Housing Benefit? Background was provided, and
advice sought from the Director of Finance. In order for a tenancy to
be considered contrived, the local authority must establish that the
dominant and primary purpose in creating the tenancy is to take
advantage of the housing benefit scheme. In this case, given the
background, the local authority did not arrive at this conclusion.
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