House Deposit affect benefits?

i_hurt_my_arm

Hi

We have recently found ourselves in an unusual situation, and I am struggling to find information regarding what our options are.

We recently sold our house and had an offer accepted on another. The people we are buying off, requested we give them a few weeks to find another place, if they couldn't find anywhere, they would move into rented accommodation.

So we moved in with my parents as a temporary measure for a few weeks. It's not ideal as we have myself, my wife and my 2 year old crammed in with my parents and their two dogs. All in a three bed semi.

However they people we are buying off are now saying they are unwilling to move out until they find somewhere, and as yet nothing suitable has come up.

As my wife is pregnant and due in September, we simply cannot stay with my parents for much longer. So our options are;

1. Buy a different house chain free.
2. Move into rented whilst we wait for our sellers to complete their chain.

My big question regarding this, is of we move into rented accommodation, our solicitors will be holding our £24k deposit for the house purchase.

Would this affect our child tax credits as we would be considered over the savings threshold?

Thanks in advance!

pmlindyloo

Tax credits are no affected by savings except for interest on the savings over £300 a year, so no problem!

Good luck, whatever decision you make.

i_hurt_my_arm

That's excellent news!

In hindsight we should not have sold our house chain free, but this is our first time selling (we inherited part of our old home) but we foolishly trusted our sellers words.

Thanks for the help!

kingfisherblue

What happens if the people you are buying from don't find a house for another six months, a year, two years? How long are you prepared to hang on? I don't know the legalities and I don't know the full circumstances, but it seems reasonable to me that you either agree a date for completion (and they move out), or you look for a different house. It might be worth posting on the house buying board for advice.

Good luck.

TELLIT01

I realise the question is specifically about Tax Credits, but most other benefits will disregard monies from the sale of one property which is intended to be used for the purchase of another. This is typically disregarded for 6 months initially, although it can be extended depending on individual circumstances.

NLW

1. give ultimatum to the people you are buying from, or reduce offer.
2. Start looking for another house.

TELLIT01

NLW wrote: »

1. give ultimatum to the people you are buying from, or reduce offer.
2. Start looking for another house.

I agree with that. The vendor is messing you around. Give them a firm date for both exchange of contract and completion. If they refuse, look for another property.

Ames

I'm probably wrong but I've got something at the back of my mind about penalties being payable if completion is delayed, something for the OP to look into. The housing board on here is probably going to be more helpful than this one.