Housing benefit

z10_2

In june last year my mum went in for a straightforward operation and was destroyed. She suffered septicaemia, septic shock, multi organ failure, 8 heart stoppages and a splenectomy. She also suffered horrendous neglect. Despite all this she managed to pull through but is ventilator dependant, has diffuse bilateral brain damage and has critical illness neuropathy. She is totally paralysed and unable to communicate.
In December we decided that she had been in intensive care long enough and our whole family moved in together ( myself, partner , three young children, my father and two brothers) and took her out of hospital to nurse her at home with us. (she needs 24hr nursing care)
My partner and I sold our property so that we could find somewhere local to her and my father supported us all finacially while we looked after mum. ( She is improving well at home)
We fiinally managed to get the PCT to pay for nurses for mum.
Just when we thought things couldn't get any worse my father was arrested in Spain while on business and we cannot afford to pay the rent .
I applied for housing benefit and was advised to ask them to disregard the capital from the sale of our house as we are going to use that to buy somewhere for my own family. They have refused us housing benefit because of this.
We only needed afew months help until my father is back and if we use all the money from the sale of our house on the rent for this property ( was rented by my father) we will then end up homeless and on benefits ourself ?
I am allowed to appeal but really need some advice as I don't understand what we are and are not entitled to. I am desperate to keep my mum here, as she would not survive another nhs institution.
I would be really grateful of any advice.

dookar

The general rule is that capital from the sale of a home can be disregarded for 26 weeks from the date of sale, providing that capital will be used to buy a new home within that time. As usual, the legislation is particularly woolly and allows the disregard to be extended where 'reasonable', so it comes down to your individual circumstances, why have you not yet purchased a new home etc.

z10_2

Thank you Dookar. We sold our home on 23rd January this year so are well within 26weeks. We have put in an offer on somewhere and has been accepted but it needs totally renovating before we could move in there and will take another 2 -3 weeks before the sale goes through.

The letter they sent says : Unfortunately you do not qualify for benefit because the Government has ruled that anyone with more than a certain amount of capital is not eligible for benefit, regardless of other circumstances.

Thankyou.

dookar

I'm not allowed to post links, but the housing benefit (general) regultions 1987 has this to say under capital to be disregarded:

3. Any sum directly attributable to the proceeds of sale of any premises formerly occupied by the claimant as his home which is to be used for the purchase of other premises intended for such occupation within 26 weeks of the date of sale or such longer period as is reasonable in the circumstances to enable the claimant to complete the purchase.

Do you have other capital? Or is the new property valued less than thecapital from the former?

z10_2

The only capital we will have left after buying the new property is about £5000. It cost more than we sold our last property for and we are using money that my partner received in inheritance for the extra amount.

cattie

z10 wrote: »

The only capital we will have left after buying the new property is about £5000. It cost more than we sold our last property for and we are using money that my partner received in inheritance for the extra amount.

How much was the inheritance that your partner received, was it £5k or was it more? This could have a bearing on the decision given you by HB.

shjo558

In the first instance, contact your Council and ask what capital they are taking into account. Then, if it is the money from the sale of your property, lodge an appeal. As others have said, the capital should be disregarded for 26 but you need to confirm that the money is intended to buy another home.

Dookar has kindly posted the legislation for you, however those regulations have been superceded by The Housing Benefit Regulations 2006 (if you and hubby are under 60) although the new regulations pretty much say the same thing.

z10_2

Inheritance was more, we have been living off this and paying for things mum needs etc. There is now about £25000 above sale of house which we will be using all but £5000 on new place.

Oldernotwiser

What benefits is your mother claiming?

dmg24

z10 wrote: »

Inheritance was more, we have been living off this and paying for things mum needs etc. There is now about £25000 above sale of house which we will be using all but £5000 on new place.

I think this is the problem. Whilst proceeds of a house sale may be disregarded, money allocated towards buying a house from other sources may not.

cattie

dmg has hit the nail on the head, the fact that you have money from an inheritance means you have capital that excludes you from hb eligibility.

It doesn't matter to hb that you may wish to spend £20k on doing up a new house or even buying one that is more expensive, the only money they will disregard is the actual proceeds from the sale of your previous house. The whole of the inheritance will be considered capital.