Universal Credit and owning your own home

kah22

I’m new to the benefits system so forgive me if I haven’t the correct terms. I’m trying to get some background before getting tied up in the system

A family member has been unable to work for a long time now. It is unlikely they will work again. They live on their own in a privately rented house. The landlord wishes to sell the house with vacant possession and has given the statutory notice. He is currently receiving PIP, HB and was receiving ESA with some disabled premiums

The family were thinking of clubing together, buying the house and giving it to him, but we are wondering what affect this will have on his benefit. He willl be coming out of hospital after a long stay and we understand that he will have to apply for universal credit. We are trying to give our brother some security in his life but obviously don’t want him to suffer financially throug our gift

So I suppose I’m asking if he becomes a property owner how much money is he likely to loose

tomtom256

His HB will stop but he should continue to receive everything else.

xylophone

The relatives could buy the property and allow the brother to live there rent free.

The relatives could lend the brother the money to buy the property and take a first charge on it such that on sale (if the brother had to go into care for example), the loan would be repaid before the balance was used for care fees.

elsien

Could he afford to maintain it while on benefits?

Petercampbell

My wife is going to receive universal credits on 20/12/2018
we have 7000 in savings this will effect the amount received
So after looking at our bank statement they will decide the amount
But we have to use this amount until we revive payments
So do they reassess every month until we are below £6000 ( the amount you can have without effect your payments)
Or once they have compleated the first award is that for a year?

calcotti

Petercampbell wrote: »

My wife is going to receive universal credits on 20/12/2018
we have 7000 in savings this will effect the amount received
So after looking at our bank statement they will decide the amount
But we have to use this amount until we revive payments
So do they reassess every month until we are below £6000 ( the amount you can have without effect your payments)
Or once they have compleated the first award is that for a year?

There don’t appear to be any rigid rules about this. I would suggest that you simply let DWP have copies of your new bank statements showing the reduced balance together with an explanation of what the money has been spent on. Hopefully they can then amend your award, this should be possible as it’s a fundamental point of UC that entitlement is calculated on a monthly basis.