Deprivation of Capital Question

Zanziba

If my partner sells our house and releases equity can she use this to put a deposit on another smaller house that is more affordable (Or a housing association half buy/half rent)?

Would the BA simply see this as deprivation of capital or is this a legitimate expense to put a roof over her and her childrens' heads?

Sam____2

I'm pretty sure if you sell a house they give you 6 months in which to use the money to purchase another, after that timescale you'd be seen as having the money as savings...

Arg

Why would it matter how long you had the cash when you either have a house or you don't.

NASA_2

Using the proceeds of a house sale to buy another property is ok.

ukjoel

Would this also include using the proceeds of a sale to pay off mortgage on another house. ie two houses owned both heavily mortgaged. House one sells and 100% of money reeived goes straight into reducing mortgage on house two on the same day.

Cheers

Penelope_Penguin

Zanziba wrote: »

If my partner sells our house and releases equity can she use this to put a deposit on another smaller house that is more affordable (Or a housing association half buy/half rent)?

Would the BA simply see this as deprivation of capital or is this a legitimate expense to put a roof over her and her childrens' heads?

I agree with the informatio that's already been given - you'd probably be treated as not depriving yourself of capital

I'd strongly advise you/your partner to contact the relevant benefit agency and ask their advice on this before going ahead. Record the date of the call, and who you spoke to, in case you need this in future.