Selling a House and Benefits

Ed_Zep

Hi there.

A friend of mine is in dire financial straits and claims Incapacity Benefit. She's trapped in a situation of a house that is completely dilapidated with virtually no money to live on.

She's borrowed a chunk of money via a council scheme to renovate the house and that's going very slowly.

My question is this; she would like to sell the house but is convinced that as soon as the money from the sale goes into her account that the DSS will cancel her benefits. Is that the case?

Also, who can someone in this situation speak to as their tribunal system seems to be rigged in their favour?

From what I can gather she feels victimised by them. I'm sure others feel the same way.

Thanks very much,
Ed.

terryw

If the sale of the house realizes capital then any income based benefit will probably be reduced or stopped - here's a link to the capital limits.

http://www.focusondisability.org.uk/brates-1.html

On the tribunal matter, more information is required please - what tribunal was this and what the appeal (?) about.

McKneff

What do you mean by 'their tribunal system'

If she sells the house and pays back the loan (there may be Terms and Conditions attached to this loan)
how much money would she be putting in the bank.

£16,000 is the limit for means tested benefits if she claims any of them but if she is just on incapacity benefit then i dont think that is affected.

Why does she feel victimised,

If she will have more than this then its only right that any MT benefits should be stopped.
It wouldnt be fiar on tax payers if she had £50k or so in the bank and we were paying her rent etc. now would it.

Ed_Zep

McKneff wrote: »

If she will have more than this then its only right that any MT benefits should be stopped.
It wouldnt be fiar on tax payers if she had £50k or so in the bank and we were paying her rent etc. now would it.

I agree it wouldn't and I'm not talking about us (presumably you mean the taxpayers) paying her rent. Her benefits help to pay her mortgage.

Her intention is to sell a buy a cheaper house. So I suppose I need to know if that £16,000 limit or any other applies in this case and how she handles the situation of that money going into her a/c and what she needs to tell them.

McKneff

She really needs to look at the terms and conditions of the loan arrangement from the Council. There may be restrictions on her being able to sell the house.

Other than that, i think you are allowed to sell and buy a house whilst you are on benefits, again it would depend on the money she would have left from selling one house and buying a smaller one as to whether it would affect benefits.

A solicitor may be able to help, they normally give half an hours free consultation.

terryw

Ed,

It is difficult to give answers from the information given. Does your friend JUST receive IB or is there a top-up with Income Support and help with existing mortgage? Please also clarify the Tribunal part.
Thanks

rogerblack

Ed_Zep wrote: »

Hi there.

A friend of mine is in dire financial straits and claims Incapacity Benefit. She's trapped in a situation of a house that is completely dilapidated with virtually no money to live on.

You've investigate there are no schemes to adapt her home to better suit her condition - being on IB?
Is she perhaps eligable for DLA?

[Deleted User]

if you sell and dont buy immediately the capital can be ignored for 26 weeks

Arg

I thought IB wasn't means tested so capital wouldn't be an issue.

pinklady21

IB is not means tested. However, it is taxable.

Also at some point before 2014, most IB claims are being reassessed for ESA. Depending on the outcome of that reassessment, your friend may end up in the WRAG (Work Related Activity Group) or the Support Group or be found Fit for Work.

If she is on Contributory ESA and in the WRAG, there is a proposal to limit ESA for 12 months. In this scenario, her ESA would stop after a year and she would have to apply for income related ESA or Income Support both of which (I believe) would be affected by capital.

Hope this helps

ManicMum

My aunt got some money from an organisation to do up her house as she is unable to work due to schizophrenia. The condition was that if she sold the house within 'x' number of years, the money given to her would have to be paid back out of the profits. Just to warn your friend!