Shared Ownership advice

PoorOldPeter

Need some advice on SO as I am not sure how it works for our situation... I am a carer for my wife so we currently receive benefits. We are due to have an inheritance within a year roughly, a sizeable sum, and we want to do an SO in an other county. We would not need a mortgage and would initially be paying rented part with HB. I intend to set up a business with inheritance as welll once settled.

We have a poor credit rating due to long time on benefit etc so can only do the SO with inheritance. How would we pay the percentage with cash, and what is the application process like in our situation?

Any advice appreciated as we so want to make this move away and step up to a better house.

dimbo61

Your major problem might be that your benefits stop if you have a large sum in the bank !
You need to check with the experts on the benefits forum.
You may also find that you won't get housing benefit of you are an owner/part owner of a property

csgohan4

Op you need to check your still eligible for benefits if you have a large amount of savings


https://www.citizensadvice.org.uk/benefits/universal-credit/before-you-apply/Check-if-youre-eligible-for-Universal-Credit/


anything else would be fraud and you cannot claim HB under certain criteria

PoorOldPeter

I understand there is a max saving level that as long as not got more HB is still paid. Not sure what that level is yet. The lump sum would be through my ha do or not even in them so that side should be ok. But thanks for that advice...

I am more confused about how it works paying cash for share as not found details about that. Is the process to apply different as not applying for mortgage etc...

borkid

PoorOldPeter wrote: »

I understand there is a max saving level that as long as not got more HB is still paid. Not sure what that level is yet. The lump sum would be through my ha do or not even in them so that side should be ok. But thanks for that advice...

I am more confused about how it works paying cash for share as not found details about that. Is the process to apply different as not applying for mortgage etc...

We have just gifted my son a deposit for a shared ownership flat and they needed ID and bank statements ( so they could see where the money came from). You will need to show details of the inheritance. He is looking to buy in London and to qualify he had to already be living or working in the borough, not sure how it works out of London. It also wasn't a 'first come first served' basis either. The HA choose who is going to get the flat, then an interview and yet more paperwork.



As others have said though it may affect yuor benefits.

PoorOldPeter

Thank you borkid... I asked HA about moving to area without local connections and I was told with SO it didn’t matter, but I didn’t ask about London. It was suggested to be gifted money so it never actually goes into my ac so doesnt affect benefits, but will play that carefully.

getmore4less

The issue is that if you are beneficially entitled to the money then it counts as yours, diverting it via others accounts to "hide" it may not be the smartest move.

ariarnia

AFAIK (unless something significant has changed in the last 3 years), if you legitimately receive the money, buying a house is not counted as deprivation of capital (as long as you intend to live in it or retain the beneficial interest).

IIRC you have six months when it can be ringfenced (disregarded) as capital for claims if you can show you are buying a house.

If you buy a Shared Ownership home, housing benefit can be paid on the rental portion and they're not subject to the Bedroom Tax.

Once you've decided what you're going to do, you should write to both the DWP and your Local Authority to let them know you're receiving the money but would like it ring fenced to buy a home.

A Decision Maker will review and write back to confirm (or ask for evidence about things like the amount of the inheritance, where it's coming from, the expected value of the property...) to make a ruling on the Deprivation of Capital and Disregarding Capital, and whether you will be entitled to continuing/future means tested benefits.

Jenniefour

PoorOldPeter wrote: »

Thank you borkid... I asked HA about moving to area without local connections and I was told with SO it didn’t matter, but I didn’t ask about London. It was suggested to be gifted money so it never actually goes into my ac so doesnt affect benefits, but will play that carefully.

Fraud - plain and simple.

Mermaid89

I would also double check re: local ties to where you're planning to move to. We had to show we had a local connection either via immediate family members or place of work before we were considered eligible.

PoorOldPeter

If I am never actually given the money then how is it? I think it was called a deed of promise?

The advice I have had is from former housing benefit person who is now working for my HA... I doubt they would suggest I commit benefit fraud.