Pension Credit and House Abroad

anmarj

just to confirm the house would be classed as capital, the tarriff income would be approx £180 per week, if their other savings are under £9k they might qualify. might be worth applying anyway and see what happens.

Oldernotwiser

What will be their housing situation in the UK? Are they planning to claim benefits to cover this?

You can sell anything anywhere if you price it low enough!

seven-day-weekend

I don't know what they are intending to do in the Uk if they can't sell their house.

I agree if you price it low enough then it will sell, but if you have nothing else, then you still haven't got enough money to buy another.

If we ever sell up we will take whatever someone is prepared to offer for our house. Don't have any plans to sell at the moment though.

Whiteknight

While living in Spain they would not get Pension Credit, if they returned to the UK a Habitual Residency Test would need to be completed. If this was passed the property over seas would be looked at, as already mentioned it is likely to be treated as capital.

However they may be able to get some sort of disregard on the value of the property (normally they deduct 10% for cost of sale) The Pension Service would look at what steps they have taken to sell the property and value and might disregard the value for a certain period of time. Ultimately they would need to return to the UK and make a claim and await a decision - it can take some time to complete the HRT and valuation processes.