Downsizing leaves me worse off

JonnoSE8

Hi,
I am severely disabled and have struggled with the stairs to my flat for years but I was attacked early this year and had a stroke. I have equity in my propert but not enough to buy a suitable place outright.
The council have given me priority need for social housing but have also said I will not be housed by them because of the Localism act and because I am not homeless. (also because of fraud and racism but that is under investigation)
I found a house that I can afford because it needs a lot of work. I can buy it outright and will have £20000 change to spend on the building work. The problem is that having the 20 grand means my income support will stop if the work isn't finished in 26 weeks. I need to apply for a grant for windows and heating under the green deal scheme. This has to be done before any other work starts. Then a disability facilities grant, then planning permission to convert the garage. It will not happen in the 26 weeks. I also need to rest as I am exhausted from fighting with the council and DWP.
The rules are so vague as to how long the 26 week period can be extended and the circumstances allowed that my MP is looking into it.

Is there any way I can reserve £10k as a sinking fund in a way that it cannot be counted as spare capital?
It's not enough money to start a trust but I need some protected reserve in case of major work.

rogerblack

JonnoSE8 wrote: »

(also because of fraud and racism but that is under investigation)<snip>

Is there any way I can reserve £10k as a sinking fund in a way that it cannot be counted as spare capital?
It's not enough money to start a trust but I need some protected reserve in case of major work.

Putting away money you have in savings in trust will essentially never be allowable - or ignored.
Once your capital falls below 16K - you would start getting some IS - though a reduced amount.

Windows may well be a very bad investment under the green deal scheme - it's a loan, and not an especially cheap one.
You may do lots better approaching a local window company - or even repairing the existing windows.
Similarly for heating systems, unless you can tap into the grant side of the funding.
As to how long the 26 weeks can be extended - that's basically completely at the discretion of the decisionmaker.
If you are actively making efforts on the building - the period may be extended.

[Deleted User]

have you considered a"park home"proved the ideal solution for us

portly1

woodbine wrote: »

have you considered a"park home"proved the ideal solution for us

A caravan??

Not saying that is doesn't suit some, but I doubt that many would relish that idea.

lemontart

I considered park homes but you have the problems of fees every year to consider so perhaps not an ideal option for many.

princessdon

You can reserve 6k, the remaining 4k would only cause minimal reduction, can't see the problem TBH.

[Deleted User]

portly1 wrote: »

A caravan??

Not saying that is doesn't suit some, but I doubt that many would relish that idea.

anything but a caravan,some park homes sell for upto £250,000 and can be bigger than a detatched bricks and mortar bungalow,and yes there are site fees but these can be financed by housing benefit and are outside the bedroom tax,you are on a rural or coastal private estate with like minded people usually over 50s with no resident children allowed...its bliss