Is a flat that own is given and about to move into counted as capital for income ESA?

Runa

Hello, I hope this is the right place to ask for some advice.

I currently receive income-related ESA for disability. I live alone rent free in a 1 bedroom flat that my brother owns, so I do not claim housing benefit or any other benefits. My brother has said he wants to sign an almost identical flat in the same block over to me, which is obviously very kind of him. I would then move from my current flat to the flat that has been signed over to me, and it would be my main and only residence.

I know that for income-related ESA all capital and assets above £6,000 are taken into account except for the home that one lives in which is disregarded.

My question is, when he signs the other flat over to me there will be a brief period where I will still be living in the first flat while owning the second. It will take a few weeks to get everything switched over to the new flat. During that time will I be punished for technically owning a property that I do not live in? Will it be counted as an asset for those few weeks and my ESA stopped and me fined £50 civil penalty?

It is not possible to move into the second flat before I own it, and I do not know for sure that it will even be signed over to me or when. So it is very difficult to plan for. I appreciate this is an unusual situation.

Many thanks for your time

tomtom256

A property you own and live in is not treated as capital for benefit purposes.

TELLIT01

Property can be disregarded for up to 6 months depending on the situation. It would need to go to a Decision Maker for an opinion. You could call ESA and ask them what they think would happen.

Ames

I think writing to ESA would be better. Firstly because you've got proof of what you're told, but mainly because the call centre doesn't always seem to know the rules around anything even slightly unusual.

HappyMJ

Runa wrote: »

Hello, I hope this is the right place to ask for some advice.

I currently receive income-related ESA for disability. I live alone rent free in a 1 bedroom flat that my brother owns, so I do not claim housing benefit or any other benefits. My brother has said he wants to sign an almost identical flat in the same block over to me, which is obviously very kind of him. I would then move from my current flat to the flat that has been signed over to me, and it would be my main and only residence.

I know that for income-related ESA all capital and assets above £6,000 are taken into account except for the home that one lives in which is disregarded.

My question is, when he signs the other flat over to me there will be a brief period where I will still be living in the first flat while owning the second. It will take a few weeks to get everything switched over to the new flat. During that time will I be punished for technically owning a property that I do not live in? Will it be counted as an asset for those few weeks and my ESA stopped and me fined £50 civil penalty?

It is not possible to move into the second flat before I own it, and I do not know for sure that it will even be signed over to me or when. So it is very difficult to plan for. I appreciate this is an unusual situation.

Many thanks for your time

If the property is going to be the home you live in then a few weeks whilst you move in is not going to matter. The new flat will be considered your home and exempt. The old flat isn't yours.

Alice_Holt

It might be worth contacting the CAB and getting info before speaking to the DWP. You will then now exactly where you stand.

I don't think it will impact on your ESa. But do check with the experts!!!