Advice needed please

robert101_2

Hi. New user looking for urgent help please.

It's a complex situation but probably a simple question:
I have to move to Northern Ireland as my pregnant fiance has had to return to her mother's house as she is unwell.

I own my house outright after paying off the mortgage when my mum died and I got divorced so, can I claim JSA at least when I move over if my house is up for sale here (Scotland)?

Also, my fiance intends to apply for housing benefit and get a place for us to stay short term when I move, until we can buy a property with the proceeds of my house here which we are looking to do immediately.

If she gets a place, and the house can be sold in my absence, does the house count as capital and means tested for our claim while it is for sale and no-one is living here?

Thanks for any help or advice.

BigAunty

Here are the rules for entitlement to HB when you have a property that you own but do not occupy

http://www.dwp.gov.uk/publications/specialist-guides/technical-guidance/rr2-a-guide-to-housing-benefit/working-it-out/income-and-capital/

robert101_2

Thanks. So, Capital held (the house here) is counted for benefit calculation, and "If capital from the sale of a house is kept for a house purchase, it is not counted for up to six months" But what about while it's up for sale and unoccupied? Once it sells I can pay rent until I buy a new property, but will I/we receive benefits before then? I.e. HB JSA & ESA.

robert101_2

CAB said probably, but not convinced they know absolutely.

robert101_2

Ok. Found this. If you are trying to sell the property, its value may not be counted (for HB/CTB) for the first 26 weeks after you start doing this. It may not be counted for longer than this if you are finding it difficult to sell the property.

But does this apply to jsa and esa?

Kimitatsu

You are correct - you can have the capital discounted for the first 26 weeks as long as you can show that the house is being actively marketed (I.e with an estate agent has viewings etc)

If the house is not sold after 26 weeks you can apply for this to continue as long as you are showing that the above criteria are being upheld and that the price you are prepared to accept is realistic.

What sort of JSA will you be claiming? Contributions based (where it is based for 26 weeks on your contributions as you have been in work ) or income based? If it is the former then capital has no impact anyway, but you will have to declare the house is up for sale if you are claiming income based JSA

HTH

robert101_2

Great thanks. I'm claiming Income Based JSA. I was signed off ESA by ATOS but can't use my right hand so finding it impossible to get a job, probably until it's better. I certainly intend to declare it in Northern Ireland but don't know if it will cut my, or my fiance's benefit (ESA + HB) while in the process of selling. Do I have to give it away to someone then get a loan back to buy a house so I have an income while it's lying empty?? Is there a legal way to screw them if I can't get any income..? :-)

Kimitatsu

You will have to declare the house as a capital asset and then ask for it to be discounted as it is up for sale. If you sell the house and do not use the proceeds to buy a new property then the capital will count as savings for the purposes of your benefit calculations.

It should not affect your claim whilst it is up for sale but if you gave the property away then you would come under the deprivation of assets rule where they can decide that you have deliberately given away capital in order to claim benefits. They can then assign a value to you that you would have had and stop all benefits until that money would have been depleted in your normal day to day living expenses (so I don't recommend this at all!)

robert101_2

Great. That's the answer I was hoping for. "Should not" affect the claim isn't as reassuring as "Will not", but I'm happy with that. Thanks very much for your help. I'm too honest to hide it and that's why I said "legal". I had imagined it would be the same as for going into care for example and I guess it is. Still can't find any official documentation referring specifically to this situation though!! :-)))) Mind almost at rest.