capital means tested

napoleon999

Hello all,
I would very much appreciate some advice on means tested benefits.
I have fairly severe mental health problems and receive IR ESA, DLA (both care and mobility), housing benefit, and Tax credits.
I live in a housing association shared ownership property with my daughter. I own 33% outright and rent the remainder obviously paid by HB.
My father has offered to pay off the remainder of the house so that myself and my daughter would have security.
The amount would obviously be above the 16,000 pounds capital rules for means tested benefits.
If he were to do this would this be regarded as deprivation of capital and therefore disqualify me from any means tested benefits.
If readers could answer or point me in the right direction it would be greatly appreciated.
If it is not possible then so be it i just want to do things 'by the book'
kind regards
N

princessdon

Get him to write the cheque direct to mortgage company. Check this out first but shouldn't be an issue from his account to theirs.

Housing_Benefit_Officer

Homes you own and live in are disregarded as capital for means tested benefit purposes.

GirlFromMars_2

To do something like this you will need to write to the DWP and Local Authority to ask them to put into writing whether you can or cannot do this. You should be able to, as using money for a house in which you will live appears to be allowed ... (I'm buying a shared ownership property and the capital I am using is being disregarded by the DWP and Local Authority, and I have it in writing from both of them)

Have you and your father considered the tax implications of a gift like this? There will be Capital Gains Tax to pay, and there may be inheritance tax issues as well?

Also how does your current Shared Ownership work? ... are you paying for repairs/service charges etc yourself, or does the housing association pay it from your housing benefit? ... If you aren't currently the one paying for/responsible for repairs you should seriously consider whether you will be able to take responsibility for these things in the future if you buy the housing association out of the shared ownership.

If the Hosing Association are responsible for the repairs is there a minimum share they need to keep hold of to continue to retain this responsibility?

You may well also be responsible for the Housing Association's legal costs when transferring the property to you, which is something else to consider as part of your budget.

I don't believe the housing association can kick you out unless you fall into rent arrears ... is this likely? ... Shared Ownership properties aren't subject to the Bedroom Tax ... does your daughter pay part of the rent, is she about to reach an age where she will be liable for part of the rent? ... are you hoping to move a partner into the property who will reduce your entitlement to Housing Benefit?

Is the housing association one that is specifically for people with physical/ mental disabilities?

Just some things to consider!

napoleon999

Hi
Thanks very much for your advice its all really helpful.
What i shall do is exactly what you suggest and write to both the dwp and the local housing section detailing what my father may do and asking them to confirm in writing whether or not this would be possible and therefore not affect any entitlement i may have to means tested benefits.
Kind regards

p00hsticks

princessdon wrote: »

Get him to write the cheque direct to mortgage company. Check this out first but shouldn't be an issue from his account to theirs.

I'm not entirely sure how these things work but is there a mortgage comany involved ?

The OP says they own a third outright and rent the remainder from a Housing assocatiion. Therefore presumably the payment for the other two thirds could go direct to the HA without a mortgge being involved ?