Deprivation of capital

alihud

Hi there I received an inheritance in 2011 I informed the dwp as I was claiming esa, council tax benefits and they were paying my mortgage interest. I'm still on DLA.
My circumstances are changing,my daughter is going to live at uni next month and my son is most likely to go next year. I own a three bed house with large mortgage. We have been living off the inheritance since 2011 but I'm wondering if I would be allowed to use what is left to buy a park home then I would have no mortgage to pay which the dwp will need to help me out with when inheritance money runs out if I stay in my present house. If I did this next year I would need to claim esa again(income related) and also council tax benefit. Would this be seen as deprivation of capital even though they would no longer have to at the mortgage? It would mean I would keep a roof over my head especially as I'm so unwell. I'm so confused I just don't know what to d for the best

TELLIT01

Assuming you sell your current house then purchase of another home will not be considered deprivation of capital.

alihud

Yes I would sell my house,use the equity if there is any and use what is left of my inheritance. Should I write to the dwp to find out for definete?

borkid

alihud wrote: »

Yes I would sell my house,use the equity if there is any and use what is left of my inheritance. Should I write to the dwp to find out for definete?

I would definitely write with your intentions and keep the written answer. That way you will know for sure and if there is any problem later on you will have written proof of the information you were given.

alihud

Who would I send the letter to?

borkid

I would phone the DWP ( do you have any contact details from when you were claiming ESA?) and ask what the situation would be then ask where to send the letter as you would like it in writing.

alihud

Ok I've found my old paperwork but there's a new number have rung that and you can only get to speak to someone if you want to actually claim benefit not for advice.

TELLIT01

They won't give advice if you don't have a claim because every case is different, and any advice / decision would be based on the actual situation at the time.
I stand by what I said previously about it not being treated as deprivation of capital though.

densol_2

All you are doing is moving home. No one is " required " to have a mortgage. If you had £100k equity and used that to buy your one and only home which happened to be a mobile home for £100k I really cant see how that would be a problem. However if you spent £70k on the home, then £20k on a swimming pool and £10k on a hot tub .... Then thats a problem.... Obviously _

BUT .... I do know a friend who paid off a mortgage with inheritance and they decided that was deprivation as it 'didnt ' need to be paid off. Selling and rebuying could be a different issue however.

Ive re read my reply and its clear as mud - because no one could really say what the answer will definitely be

Xbigman

There are other equally important questions to answer.
If under 55 the choice of sites you can buy a Park home on reduces dramatically.
Benefits don't always cover the Maintenance charges in particular if the charges include any utilities. Then there are the various sell-on clauses that can be punitive.
Think carefully before going the park home route.




Darren

seven-day-weekend

Remember also that your park home will depreciate in value very quickly. Have you considered a flat instead?