On ESA sold house

Pinkycat1

On ESA support group,DLA,council tax benefits.
Just sold house and moving in with family using the money to buy another property.
I had to move because blind and house too big for me and couldn't maintain. Going to buy smaller property. Moving to a different council authority. Hopefully only short term moving in with family then getting own place.

Who do I tell?
Is it best to write?
Do I have to declare the amount? Or does it not count because using it to buy another house?
I know I have to tell but what information do I have to give?
I have been told conflicting things so getting confused.

pmlindyloo

Pinkycat1 wrote: »

On ESA support group,DLA,council tax benefits.
Just sold house and moving in with family using the money to buy another property.
I had to move because blind and house too big for me and couldn't maintain. Going to buy smaller property. Moving to a different council authority. Hopefully only short term moving in with family then getting own place.

Who do I tell?
Is it best to write?
Do I have to declare the amount? Or does it not count because using it to buy another house?
I know I have to tell but what information do I have to give?
I have been told conflicting things so getting confused.

You need to inform every department of your change of circumstances. There may be forms online to complete or telephone the relevant department and then follow up with a letter. Keep copies and make a note of each person you spoke to, date and time informing them of change of circumstances.

The change may affect your ESA payments particularly if you are receiving the Sever Disability Premium. It will certainly affect your council tax.

There is a 26 week disregard of any money you have from the sale of your property which you use to buy another property - could be longer if there are special circumstances.

Difficult to comment further without knowing the figures.

This assumes that you are on income based ESA. If you are on contribution based ESA then any savings you have will not make any difference.

Just telephone and explain and then follow up with a letter.

Hope you find what you are looking for.

TELLIT01

As pmlindyloo says, having the money, and where you are now living, may affect some of your benefits. It's important that you inform ALL departments as soon as possible to ensure there are no overpayments. Let them work out what effect it has.
As you are planning to purchase another property it can be disregarded on ESA for 6 months initially.

Housing_Benefit_Officer

From Decison Makers Guide https://www.gov.uk/government/collections/decision-makers-guide-staff-guide

29535 Money from the sale of premises which were lived in as the home is disregarded to give a person time to buy other premises if the person is going to
1. use the money to buy premises and
2. live in those premises as the home.
The period of disregard is 26 weeks or longer if it is reasonable from the date of sale
The money
29536 Money includes a payment made to a tenant or lessee by a landlord to buy back a tenancy or lease1.
Applying the disregard
29537 For the disregard to apply people should show
1. they intend to use the money to buy premises to live in as the home and
2. it is reasonably certain that they will in fact do so within 26 weeks or longer if it is reasonable from the sale of premises which were lived in as the home.

Example
Nigel receives £50,000 from the sale of his previous home. He moves to another area and claims JSA(IB). He states that he intends to use the £50,000 to buy a new house but he didn’t want to do so straightaway in case he did not like the new area.
The DM decides that the disregard does not apply because it is not reasonably certain that Nigel will use the money to buy another home within 26 weeks or any extended period.
29538 Evidence of an intention to use money to buy premises to live in as the home may include a
1. binding agreement to buy premises or
2. firm agreement from which a person would not be expected to withdraw, such as one which is subject to contract.
Money does not include payment from the sale of premises which
1. were bought with money from the sale of the previous home and those
premises have not been lived in as the home or
2. a person was not the beneficial owner of at the time of sale.
Example 1
Rozma sells her home and moves into a rented flat. She uses the money from the sale of her home to buy a holiday home. She uses that home just for holidays. The money she gets when she sells the holiday home is not disregarded.
Example 2
The executors of Norma’s estate sell her home. Norma’s daughter Juliet inherits the money from the sale. The disregard does not apply because Juliet is not the beneficial owner of the house when it is sold; even if the house was Juliet’s home.
29540 If the premises sold include a part which was not lived in as the home, such as a business with living accommodation, the disregard does not apply to the money from the sale of that part. The DM will need to get expert advice if the DM cannot work out how much of the money from the sale is for the part which was lived in as the home Separate guidance sets out those cases where DMs may require such expert advice.

29541 The disregard does not apply to any money which a person
1. gets from selling the home and
2. is not going to use to buy another home.
Example
A man and wife are going to buy another home using £60,000 of the £100,000 they got from selling their previous home. The disregard does not apply to £40,000 because it is not going to be used to buy another home. It does apply to £60,000.