Unemployed but with savings

xylophone

http://www.housepricecrash.co.uk/forum/index.php?showtopic=194360

http://www.rightsnet.org.uk/forums/viewthread/1250/#4827

might be of interest.

whatthefunk

How about making improvements to your main home such as new windows and doors or carpets/furnishings. Would that be considered as deprivation of capital?

jlawrence

whatthefunk wrote: »

How about making improvements to your main home such as new windows and doors or carpets/furnishings. Would that be considered as deprivation of capital?

Hi !!!!!!, isn't it the case that you can only repair or replace what is broken or worn out? Building a £30,000 extension is a no no.
If this was at all possible then I would be the first to extend our 2 bed bungalow to a 5 bed one along with a bigger kitchen, another lounge/TV room and a few more bathrooms, as well as the extensive garden room. That should take care of the bulk of our £100,000 capital and let us claim some benefits. We could then claim for the rent a room exemption.

NYM

jlawrence wrote: »

Hi !!!!!!, isn't it the case that you can only repair or replace what is broken or worn out? Building a £30,000 extension is a no no.
If this was at all possible then I would be the first to extend our 2 bed bungalow to a 5 bed one along with a bigger kitchen, another lounge/TV room and a few more bathrooms, as well as the extensive garden room. That should take care of the bulk of our £100,000 capital and let us claim some benefits. We could then claim for the rent a room exemption.

Aah, but then in 6 years time you'd have to find £100,000 to settle your mortgage.

dippy3103

Lots of questions about capital & benefits from new members the past few days. Just an observation

jlawrence

NYM wrote: »

Aah, but then in 6 years time you'd have to find £100,000 to settle your mortgage.

Hi NYM, yes but with all that extension work, we would more than recover the costs in a vastly increased sale price. The property is valued at about £375,000 with a £100,000 mortgage. Spending that money would make the property worth in todays figures well over £500,000. We would come out of our current home with over £400,000. But alas, we wouldn't be allowed to do that and claim ESA, so we need the £100,000 to live off between now and 2020.

jlawrence

dippy3103 wrote: »

Lots of questions about capital & benefits from new members the past few days. Just an observation

Hi Dippy, that's me unfortunately as we are in the middle of a no win situation and needed to know what the best course of action would be to guarantee a benefit income whilst having money tied up with the bank supporting the mortgage debt.

whatthefunk

dippy3103 wrote: »

Lots of questions about capital & benefits from new members the past few days. Just an observation

Nothing sinister in that. Lots of people seem to be in similar situation of having carefully saved over many years and then find themselves out of work especially in their 50's. Then being penalised for working hard all their life and being careful with their money and finding all the hard earned cash being used just to live.

Interest rates are so rubbish so you can't even rely on your nest egg increasing. And any benefits are out of reach while others having paid nothing in to the system just keep on taking (benefit street springs to mind).

So why shouldn't people look to obtain any benefits that they can? Finding a descent job in your mid-50's is pretty much impossible and even part time work is hard unless your an experienced cleaner or admin assistant!

HappyMJ

whatthefunk wrote: »

Nothing sinister in that. Lots of people seem to be in similar situation of having carefully saved over many years and then find themselves out of work especially in their 50's. Then being penalised for working hard all their life and being careful with their money and finding all the hard earned cash being used just to live.

Interest rates are so rubbish so you can't even rely on your nest egg increasing. And any benefits are out of reach while others having paid nothing in to the system just keep on taking (benefit street springs to mind).

So why shouldn't people look to obtain any benefits that they can? Finding a descent job in your mid-50's is pretty much impossible and even part time work is hard unless your an experienced cleaner or admin assistant!

There are so many "if's" though...

If you had paid any excess income onto your mortgage as soon as you had it you wouldn't have it now so can claim JSA.

If you had paid as much as you felt comfortable with into a pension then that money is locked away and you can claim JSA.

In regards to your initial enquiry regarding NI contributions you can either choose to sign on each week which is a bit of a hassle and quite expensive to get to/from the jobcentre on time or you can choose to make voluntary contributions which can be backdated and may be cheaper than a bus fare to/from town each week.

jlawrence

HappyMJ wrote: »

There are so many "if's" though...

If you had paid any excess income onto your mortgage as soon as you had it you wouldn't have it now so can claim JSA.

If you had paid as much as you felt comfortable with into a pension then that money is locked away and you can claim JSA.

In regards to your initial enquiry regarding NI contributions you can either choose to sign on each week which is a bit of a hassle and quite expensive to get to/from the jobcentre on time or you can choose to make voluntary contributions which can be backdated and may be cheaper than a bus fare to/from town each week.

Hi Happy, but would it? It would be clear that you were intentionally 'getting rid' of income/capital so as to maximise your future benefit entitlement.