Deprivation of capital

Ames

blackmoorowner wrote: »

Yes I understand that rules have to be followed, which is why I was asking for advice, I was just giving my opinion.
The uncle was living in the house when his father died, he was his carer.
Thanks for the advice, We will have to buy the house at mortgage value

You can't do that. Firstly, whoever is administering the estate would be failing in their legal duty to get the best price. Secondly, the DWP and social services may well do their calculations based on the full price of the house. They'll assume the uncle and mother have half of what the house is worth, not half of what they got for it. Selling below market value would be deprivation of capital, especially since it's being sold to close family members.

Is there a reason it can't be sold on the open market?

ETA: obviously from a house buying perspective you can do that, but from a deprivation of capital perspective you can't.

blackmoorowner

sorry I meant to put 'market value' not mortgage value.
By open market do you mean selling it to someone outside the family?

Ames

blackmoorowner wrote: »

sorry I meant to put 'market value' not mortgage value.
By open market do you mean selling it to someone outside the family?

If it's sold at market value then that's fine.

Yes, open market meant selling outside the family. I thought when you said mortgage value that you meant paying less than it was worth, so thought that it would be better to sell outside the family for full value. You'll need to get valuations though to prove that it's all above board.

blackmoorowner

They could sell it on the open market, but we would love to own the house, it would be a great opportunity for us to buy our first home together, the house needs a lot of work doing to it, so we can decorate it to our style, and would love for it to stay in the family. Defiantly seems like the best course of action is to get it valued and pay that. would it be OK for us to pay under the valuation buy a small amount, say 5000? or do we have to buy it at the full valuation price?

nannytone_2

if the uncle was recognised as being disabled ( receiving disability benefit) then the capital held by the mother in the house could be disregarded for housing benefit purposes.

if the house is lived in by a disabled person a sale cannot be forced and so the capital is ignored

blackmoorowner

nannytone wrote: »

if the uncle was recognised as being disabled ( receiving disability benefit) then the capital held by the mother in the house could be disregarded for housing benefit purposes.

if the house is lived in by a disabled person a sale cannot be forced and so the capital is ignored

Oh so does this mean that she wouldn't have to pay any benefits back as it doesn't count?

nannytone_2

it may.

what benefits does the uncle receive?

blackmoorowner

Housing benefit, and disability are the only ones that i know about.

missbiggles1

blackmoorowner wrote: »

The uncle has lived in the house for his whole life I think, and cared for their father until his death, he also has disabilities which have now lead to him living in a care home. I don't think it even crossed his sisters head to charge him rent for a house that she hasn't lived in for over 30 years, she was fully entitled to I imagine. When we buy the house they can totally use that money to pay back the benefits, so its not a problem on that front.

It could be a problem if they decide to prosecute her for benefit fraud.

nannytone_2

the uncle gets housing benefit and disability benefit?

please clarify that this is what you meant to say