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    • H7R
    • By H7R 12th Jan 18, 9:32 PM
    • 2Posts
    • 0Thanks
    H7R
    ESA, moving to a new home but still to sell main property
    • #1
    • 12th Jan 18, 9:32 PM
    ESA, moving to a new home but still to sell main property 12th Jan 18 at 9:32 PM
    Hi, please may I ask for some help and advise as I'm worried......

    I have lived in my house for 13yrs and recently paid off the mortgage.
    I have received PIP standard rate, which is none means tested for 2 yrs and ESA none support group for one year with the disability premium.
    I am now selling my home...it is on the market....in the mean time mum has agreed to buy a house for me out right in my name till I sell my house at which time I will pay her back.. their will be a fairly large short fall... mum's fine with this as she wants to see me settled and ok as I'm not in the best of health.

    Can anyone advise me re my house and the effect it may have on my ESA benefit as I very little money in the bank to live on once my bills are paid and worried DWP my see my house as capital ?

    Many Thanks
Page 1
    • huckster
    • By huckster 12th Jan 18, 10:47 PM
    • 3,018 Posts
    • 1,265 Thanks
    huckster
    • #2
    • 12th Jan 18, 10:47 PM
    • #2
    • 12th Jan 18, 10:47 PM
    If you sell any property and capital is released, then yes it would be seen as capital available affecting any means tested benefits. If the money was directly going from one property directly into buying another property it would not be an issue.

    My suggestion is that you contact the DWP department dealing with your ESA benefit claim to discuss this. Perhaps, if they are given a clear written explanation of the transaction you are making to move from one house to another with the help of your Mum, then they might not see it as capital. This would be better than trying to explain it after the event.

    The other issue is whether your change in circumstances might trigger a need to move to Universal Credit. Again you should ask about this.
    • venison
    • By venison 12th Jan 18, 11:17 PM
    • 1,477 Posts
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    venison
    • #3
    • 12th Jan 18, 11:17 PM
    • #3
    • 12th Jan 18, 11:17 PM
    Personally I would wait until you sell your house before buying a new one to avoid complications, PIP won't be affected anyway only means tested benefits. If you sold your house and didn't buy another immediately then the money might be disregarded for 6 months.
    For confirmation you might want to speak to the DWP.
    I am a BG on loans,credit cards and benefits I volunteer to help get your forum questions answered and keep the forum running smoothly". Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.
    • TELLIT01
    • By TELLIT01 13th Jan 18, 9:44 AM
    • 4,394 Posts
    • 4,626 Thanks
    TELLIT01
    • #4
    • 13th Jan 18, 9:44 AM
    • #4
    • 13th Jan 18, 9:44 AM
    I would strongly advise having a formal, written, signed and witnessed agreement between yourself and your mother detailing the purchase of your new house and that she will be repaid from the sale of you current property.
    Even with that I would still discuss it with DWP to avoid any potential issues further down the line.
    • epitome
    • By epitome 13th Jan 18, 4:59 PM
    • 3,079 Posts
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    epitome
    • #5
    • 13th Jan 18, 4:59 PM
    • #5
    • 13th Jan 18, 4:59 PM
    What amount was used to pay off the mortgage?

    Where did it come from? Did the amount take your savings over (however briefly) £6000 or £16,000 ?

    Have you told the DWP that you had this money and paid your mortgage?

    Why don't you stay in the house being sold until it is sold? I do however know that it is a far cleaner way to buy and sell if you can do it separately rather than be part of a chain.

    Generally speaking, as long as your home that you are not living in is on the market for a fair and reasonable price then the money you have tied up in that property is disregarded initially for 6 months, the DWP should review your situation after 6 months and they can then extend the period another 6 months if they think all that can be done to sell is being done to sell.

    I don't think money from the sale of the house can be disregarded at all once it is in your account (I could be wrong). It would mean that Income Related would stop until you buy another house or give that money away as per your agreement with your mother.

    You should note that buying a second house in your name will make you liable to pay the higher rate of stamp duty on the new house, this can be quite a substantial sum like an extra £5000 than you would have otherwise paid. You should therefore check on the house buying and selling board if there is any grace period whereby if you sell your first house you within say 6 months ...if you are able to re-coup the extra stamp duty you paid.

    I also agree if you do this you should have a written agreement between you and mother that she will be paid the full amount of the proceeds from the sale of your house. The conveyancing solicitor for the new house should be able to type up such a letter, and the solicitor will also probably strongly recommend to your mother that such a clause is put into the deeds of the new house.
    Last edited by epitome; 13-01-2018 at 5:04 PM.
    • H7R
    • By H7R 13th Jan 18, 5:41 PM
    • 2 Posts
    • 0 Thanks
    H7R
    • #6
    • 13th Jan 18, 5:41 PM
    • #6
    • 13th Jan 18, 5:41 PM
    Hi,
    Thanks all for the advice....

    I stopped working only a year ago so had manage to pay most off the mortgage by this point so just under 2k left...which as it has turned out has been good due to illness and stopping work. I paid the remaner off before we decided I should look to move.

    I agree buying before selling is not the best way to do things but the right house in the right area for a good price has come along and I can stay their now....not moving again ! Plus it not far from mum :-)
    I will call the DWP to advise the situation and get a letter done for mum at the solicitors.

    Again many thanks for the advises
    • tomtom256
    • By tomtom256 13th Jan 18, 5:47 PM
    • 908 Posts
    • 1,659 Thanks
    tomtom256
    • #7
    • 13th Jan 18, 5:47 PM
    • #7
    • 13th Jan 18, 5:47 PM
    Hi, please may I ask for some help and advise as I'm worried......

    I have lived in my house for 13yrs and recently paid off the mortgage.
    I have received PIP standard rate, which is none means tested for 2 yrs and ESA none support group for one year with the disability premium.
    I am now selling my home...it is on the market....in the mean time mum has agreed to buy a house for me out right in my name till I sell my house at which time I will pay her back.. their will be a fairly large short fall... mum's fine with this as she wants to see me settled and ok as I'm not in the best of health.

    Can anyone advise me re my house and the effect it may have on my ESA benefit as I very little money in the bank to live on once my bills are paid and worried DWP my see my house as capital ?

    Many Thanks
    Originally posted by H7R
    Reading this as you have ESA for one year, presumably this is contribution based?

    If so then it will currently have no effect on your benefits.

    If it is Income Related, then the unsold property can be disregarded, I think for 52 weeks whilst on the market and in sometimes indefinitely.

    Check your award letter and let us know if it is contribution or income related and we can better advise.
    • epitome
    • By epitome 13th Jan 18, 5:59 PM
    • 3,079 Posts
    • 1,868 Thanks
    epitome
    • #8
    • 13th Jan 18, 5:59 PM
    • #8
    • 13th Jan 18, 5:59 PM
    Also when buying the new house, ask the solicitor if the proceeds of sale of the old house - as per your written agreement with mother - can be paid directly to your mothers bank account? Then it won't come into your account and should make the DWP happier ...

    And come back to this thread on mon or Tuesday next week, I might have more info for you.
    Last edited by epitome; 13-01-2018 at 6:01 PM.
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