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worrying about future housing logistics

faerielight
faerielight Posts: 1,903 Forumite
Part of the Furniture 1,000 Posts Combo Breaker I've been Money Tipped!
edited 13 May 2017 pm31 11:49PM in Benefits & tax credits
I will be inheriting my mother's house once probate has gone through , and although it's got a hefty remortgage, I hopefully will get some money once it is sold. I am in desperate need of housing, so I ideally would want to buy a small 1 bed flat with it, (or most likely, a studio flat, as my area is extortionate) but there is unlikely to be any money left over. The logistical worries I'm having are how to transition from being on income based ESA to buying a flat, as fast as possible, but I imagine it takes time, without the money draining quickly and losing my chance to have a home. I think it's hard for me to picture the logistical timeline as the solicitor and executor are not keeping me in the loop at all, and have no experience of property buying, /inheritance and benefits. I doubt I would qualify for a mortgage, as I did a debt relief order 18 months ago, so would be looking to buy outright. I'm not being too coherent, in essence, I don't know how to coordinate this, and obviously would not want to commit fraud! Is it considered deprivation of capital in the period when I will be trying to buy a home or is it disregarded? I wondered if there is any sort of "grace period" that benefits allow time to buy a home, or should I be looking sooner, and if so, can you put in an offer before I get the inheritance and whilst still on ESA, or is that not allowed? If I wasn't in such desperate need of housing, I would happily live off the inheritance until it was gone, but it would be devastating if I could not seize this one chance for me to buy a property, suitable for my disability needs., I am never going to get a council flat, it's impossible, and rent here is so high, including my current rental flat.

My other worry is thatI don't know how I would afford the costs of owning a home such as the leasehold costs and repairs.. I guess I have to prepare myself that it might not be possible to buy somewhere. I wasn't sure if this should be in the housing or benefits section.
Many thanks to all who contribute on MSE :)
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Comments

  • As soon as the property is inherited it counts as capital. If it is put up for sale the property is disregarded as capital for 26 weeks or more (it doesn't have to be a former home.)

    However once it is sold the cash is counted as capital immediately. It isn't disregarded. Only the capital from a former home being used to purchase a new home is disregarded for 26 weeks or more.
    These are my own views and you should seek advice from your local Benefits Department or CAB.
  • pollyanna_26
    pollyanna_26 Posts: 4,839 Forumite
    Ninth Anniversary 1,000 Posts Name Dropper Photogenic
    Hi Faerie .
    I'm no expert but I know in certain circumstances there is a period of grace after probate and the money is in your bank .
    No doubt someone more clued up will explain that .
    I don't know if you would be better looking in a cheaper area for property .
    I know you have a support system you have struggled to set up and rely on that . If you could find somewhere within the service catchment area less expensive that may help .
    Avoid leasehold agreements and other costs where possible .
    Probate will take time to sort so you have time to think in more depth .Sorry I can't supply answers on the esa question .
    If possible to find a home of your own it would help you so much .
    I hope you find your dream ( hopefully with a functional and fit for purpose bathroom ) I'll be sending the vibes .
    Take care
    polly :heart2:
    It is better to light a single candle than to curse the darkness.

    There but for fortune go you and I.
  • IAmWales
    IAmWales Posts: 2,024 Forumite
    edited 14 May 2017 am31 10:20AM
    Also remember that house/ flat buying is for the long term. Do your health conditions mean you might need a sleep in carer, or equipment that requires extra space?

    Would shared ownership be suitable for you?

    We looked at a retirement property recently for a disabled friend, apparently these properties were wheelchair friendly. They were in general, except that there was not nearly enough turning space in the bathroom. Sadly others had not realised until they moved in.
    Avoid leasehold agreements and other costs where possible .

    They'll have little choice if looking at flats.
  • iammumtoone
    iammumtoone Posts: 6,377 Forumite
    Tenth Anniversary 1,000 Posts Name Dropper I've been Money Tipped!
    edited 15 May 2017 am31 10:56AM
    I assume the OP claims housing benefit so by purchasing their own property they are no longer expecting state to provide this.

    Depending on the age of the OP in the long term this will probably be cost effective for the tax payer, rather than the money being spent on rent now for a few years only to go back on housing benefit for potentially 30-40 years after it has gone.
  • cattie
    cattie Posts: 8,841 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    edited 15 May 2017 am31 10:57AM
    The OP more than likely qualifies for housing benefit, so in trying to buy a property, they are looking to to actually save the state money they would otherwise pay in HB.

    The OP is hardly thinking of squandering the money they will be left with & instead is considering a wise move which will provide a stable roof over her/his head & hopefully will meet all of their needs.
    The bigger the bargain, the better I feel.

    I should mention that there's only one of me, don't confuse me with others of the same name.
  • faerielight
    faerielight Posts: 1,903 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker I've been Money Tipped!
    edited 15 May 2017 am31 10:57AM
    Regarding tax payers, my rent is extortionate as are all rents in Brighton, so my thoughts were that buy buying I would be saving the taxpayers a huge chunk of money on housing benefit.
    .I do have a care team but not overnight care, although that might change in the future.. it is something to think about.
    Many thanks to all who contribute on MSE :)
  • teddysmum
    teddysmum Posts: 9,500 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    edited 15 May 2017 am31 10:57AM
    I don't believe an amount has been stated. The house is heavily mortgaged, so once selling/solicitors fees and possibly a mortgage settlement fee (are these charged in the case of decease? )have been deducted there could be very little left, especially if the property proves difficult to sell and the price has to be reduced.(This happened to family)
  • faerielight
    faerielight Posts: 1,903 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker I've been Money Tipped!
    Thanks Pertinent.. I don't know if there will be much left, the house in in a terrible state of disrepair plus the hefty remortgaging, and solicitors fees are going to be huge as the executor is doing nothing and passing it all onto the solicitor to do. I'm just hoping to be able to buy a flat as a solution to being in terrible rental conditions, and unable to get a council flat.
    Many thanks to all who contribute on MSE :)
  • Torry_Quine
    Torry_Quine Posts: 18,863 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    I don't have any knowledge but I hope it works out for you.
    Lost my soulmate so life is empty.

    I can bear pain myself, he said softly, but I couldna bear yours. That would take more strength than I have -
    Diana Gabaldon, Outlander
  • faerielight
    faerielight Posts: 1,903 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker I've been Money Tipped!
    thanks Teddysmum, pertinent , cattie and iammumtoone , tory and the other helpful replies.. I forgot to add that I'm 46 year old, iamwales, and I get 16 hours care a week.. I guess my questions are hypothetical at this time as I don't know how much will be left, but yes, shared ownership would be good, I'll have to look into government schemes. My DRO doesn't clear for another 16 months though.
    I'm just so ignorant when it comes to the law and the processes regarding probate, inheritance, selling/buying etc and I'm too ill to trawl through all the info online.
    Many thanks to all who contribute on MSE :)
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