Question about buying property, Deprivation of capital & JSA

xylophone

I wonder could you lend the money to your mother so that she can buy the house and take a charge on the property?

You would need to see a solicitor to discuss the "mortgage " agreement and repayment terms.

real1314

HappyMJ wrote: »

He's buying a property for half of it's market value. As I said I would not worry about deprivation of capital rules and just go ahead and buy it. Of course he will probably be hit with DofC but he and his mum will be living there anyway. Rent free...No housing benefit claim. Saving taxpayer money... if he moves out mum can take in lodger and give that to him if he really needs some cash in the future as a way of saying thanks for the house. Depends on how much he trusts his mother to help him out in the future.

OP will almost certainly be treated as having depreived themselves of capital.
There are some very specific rules about the proceeds of the sale of a house, which basically say that it can be disregarded for 6 months if the intention is to use it to purchase another property. Hence the law is clear on when capital can be used to buy a property without DofC being an issue. There is no such clause for the OP's situation.
In this case the OP would be gaining a capital asset to them allow the payment of income related benefits - this would be a clear DofC.
Given that the OP is expecting £70k, they could easily live off this for some time compared to JSA rates - in excess of 10 years quite easily, so the DofC restriction could well last many many years. :cool:

BurnleyBob

OP's plan to purchase a property with the £50K of the windfall is fraught with D of C dangers in his current circumstances because from the sounds of it he's already in secure accommodation. It would be easier to achieve his objective when the time comes to be homeless or representing himself as homeless (booes and hisses are heard from the gallery) in the several weeks prior to the purchase as he would stand a much better chance of a DM not deeming his spend as a D of C.

papasmurf13

BurnleyBob wrote: »

OP's plan to purchase a property with the £50K of the windfall is fraught with D of C dangers in his current circumstances because from the sounds of it he's already in secure accommodation. It would be easier to achieve his objective when the time comes to be homeless or representing himself as homeless (booes and hisses are heard from the gallery) in the several weeks prior to the purchase as he would stand a much better chance of a DM not deeming his spend as a D of C.

Why would I want to make myself homeless? where I live now is hardly secure, I have no legal rights as I'm not a tenant.

BurnleyBob

You stated earlier in the thread that you've lived in the same place for four years. That sounds secure to me and I daresay it would to a Decision Maker too.

If you were homeless or, as I stated earlier, represented (I'd underline that word if I could - I'm on your side here) yourself as homeless for a period directly before a property purchase then the faceless Orwellian sounding character who'll review your details will be far more sympathetic because buying a property out of your new found wealth would be an entirely logical decision. If you do some more research on the subject you'll realise what I'm stating is correct.

Furthermore, should the, let's say £50K, you spend on a property not be deemed as D of C then it'll be far less likely that any associated costs you incur will also not be deemed as D of C neither.

So if you're still on JSA and have £20K left in your current account, it'll take a dive with conveyancing fees and the reasonable costs of furnishing the place... carpets, white goods, bed, three-piece suite, TV, etc, could put you close to having just £6K left and be entitled to JSA and full Council Tax Benefit.

princessdon

BurnleyBob wrote: »

You stated earlier in the thread that you've lived in the same place for four years. That sounds secure to me and I daresay it would to a Decision Maker too.

If you were homeless or, as I stated earlier, represented (I'd underline that word if I could - I'm on your side here) yourself as homeless for a period directly before a property purchase then the faceless Orwellian sounding character who'll review your details will be far more sympathetic because buying a property out of your new found wealth would be an entirely logical decision. If you do some more research on the subject you'll realise what I'm stating is correct.

Furthermore, should the, let's say £50K, you spend on a property not be deemed as D of C then it'll be far less likely that any associated costs you incur will also not be deemed as D of C neither.

So if you're still on JSA and have £20K left in your current account, it'll take a dive with conveyancing fees and the reasonable costs of furnishing the place... carpets, white goods, bed, three-piece suite, TV, etc, could put you close to having just £6K left and be entitled to JSA and full Council Tax Benefit.

They get that anyway and are entitled to a home of their own with hb etc. this way ops mother pays more in bedroom tax reducing benefit and they save on hb. Long term it reduces hb which is the highest form of benefits claimed.

papasmurf13

BurnleyBob wrote: »

You stated earlier in the thread that you've lived in the same place for four years. That sounds secure to me and I daresay it would to a Decision Maker too.

If you were homeless or, as I stated earlier, represented (I'd underline that word if I could - I'm on your side here) yourself as homeless for a period directly before a property purchase then the faceless Orwellian sounding character who'll review your details will be far more sympathetic because buying a property out of your new found wealth would be an entirely logical decision. If you do some more research on the subject you'll realise what I'm stating is correct.

Furthermore, should the, let's say £50K, you spend on a property not be deemed as D of C then it'll be far less likely that any associated costs you incur will also not be deemed as D of C neither.

So if you're still on JSA and have £20K left in your current account, it'll take a dive with conveyancing fees and the reasonable costs of furnishing the place... carpets, white goods, bed, three-piece suite, TV, etc, could put you close to having just £6K left and be entitled to JSA and full Council Tax Benefit.

Thanks for the further information, I now understand where you are coming from and yeah your right! hopefully though I will find a new job beforehand and wont have to worry about D of C at all.. fingers crossed lol..

papasmurf13

Thanks everyone for all your input and opinions, they are all greatly appreciated.. Cheers